ict job market outlook

7/28/2019 Ict Job Market Outlook

1/52

PUBLISHED BY IN CO L L AB O RAT IO N WIT H

ICT JOB MARKET OUTLOOKIN MALAYSIAJUNE 2013


2/52


3/52

ICT Job MarketOutlook in MalaysiaJune 2013

Published by:

In collaboration with


4/52

COPYRIGHT

Copyright 2013. All rights reserved. No part of this publication may be produced or transmitted in any form or anymeans, electronic, mechanical, photocopying or otherwise, including recording or the use of any information storage

and retrieval system without prior written permission from PIKOM .

Published by:

1106 & 1107, B lock B , P hileo Damansara II

No.15, Jalan 16/11, 46350 Petaling Jaya

Selangor Darul Ehsan

T: +(603) 7955 2922; F: +(603) 7955 2933;

E: pikom@ pikom.org.my

W: www.pikom.org.my

Wisma JobStreet.com,

27, Lorong M edan Tuanku 1, ( off Jalan Sultan Ismail) ,

50300 Kuala Lumpur, M alaysia

T: + (603) 2176 0493 (DL) ; F: + (603) 2698 7200W: www.jobstreet.com

E: marketing-kl@ jobstreet.com

KPM G M alaysia, Level 10, K PM G Tower,

8, First Avenue, Bandar Utama, 47800 Petaling Jaya

T: +(603) 7721 3656; F: +(603) 7721 3399

W: www.kpmg.com.my

ISSN No: 2180-267X

R elease date: June, 2013

Editor-in-Chief: R amachandran Ramasamy, H ead of Policy, C apability and Research, P IKOM

Contributor: D ominic Wong, Senior M arketing M anager M alaysia, JobStreet.com

R eviewed by: Woon Tai H ai, Executive Director, KPM G M alaysia

DISCLAIM ER

This publication contains findings based on data provided by JobStreet.com Sdn B hd (449122-K ) . KPM G Business

Advisory Sdn Bhd (150059-H ) and P IKOM Services Sdn B hd (801999-W) collaboratively carried out the data analysis.

Although professional effort has been made to ensure the accuracy of data analysis and presentation, all information

furnished in this publication are provided strictly on an as is and as available basis and is so provided for your

information and reference only. With this caution, k indly be informed that this release is not presented to address the

circumstances of any particular individual or entity. As such, JobStreet.com, KPM G and P IKOM including their sponsors,

partners and associates, whether named or unnamed, do not warrant the accuracy or adequacy of the data and findings.

M oreover, all parties concerned explicitly disclaim any liabili ty for errors or omissions or inaccuracies pertaining to the

contents of this publication. Therefore, the use of data and fi ndings presented in this publication is solely at the users risk.

P IKOM , JobStreet.com and KPM G shall in no event be liable for damages, loss or expense including without limitation,

direct, incidental, special, or consequential damage or economic loss arising from or in connection with the data and / or

findings published in this series. H owever, professional advice can be sought from the producers of this publication.


5/52

iii

ICT JOB M ARK ET OUT LOOK IN M ALAYSIA | JUN E 2013

Contents

Message by PIKOM Chairman iv

Message by PIKOM President/CEO v

Preamble 6

Malaysian Economic and ICT Industry Outlook 9

ICT Job Market Salary Trends 14

Regional Benchmarking 25

Employment Outlook and Perceptions 28

Rethinking HR in a Changing World: A Practitioners Discourse 33

The Right Talent Development Strategy for Top Talents? 39

Closing The Demand-Supply Gap in ICT Talents 44


6/52


7/52

v


Message by PIKOM President/CEOSHAIFUBAHRIM SALEH

P IK OM is once again pleased to publish the annual IC T Job M arket Outlook in M alaysia report. As in the

past, this series continues to provide information on average monthly salaries earned by information and

communications technology (ICT ) professionals in M alaysia in 2012.

The report revealed that the ICT job market in M alaysia is expanding and evolving in tandem with the growing

demand for information age services such as system integration, cloud computing, data warehousing,

software development as a service (SaaS) , platform as a service (P aaS) , web and portal development, multi-

media content provision, big data analytics and networking.

In meeting the changing demands of the industry and human capital requirements, P IK OM has reviewed and

realigned its fi ve-year strategy plan during its 2013 planning session. Specifi cally, human capital development

is positioned as one of the six key strategies. T he others include enhancing value to members, accelerating

growth demand, leading the digital trend and increasing competitiveness and globalisation of the M alaysian

ICT industry. I n human capital development, P IKOM has embarked on programmes to publicise ICT courses

through social media networks, re-skill the current talent pool, conduct cross-disciplinary training, promote

industrial guided projects for students and to attract M alaysian talents from overseas as well as the Board of

Computing Professionals M alaysia (BCP M ) .

Once again, I would like to take this opportunity to record my sincere appreciation to Jobstreet.com andK PM G for their effort in making this publication into another milestone for P IK OM .


8/52

6

ICT JOB M ARK ET OUTLOO K IN M ALAYSIA | JUN E 2013

Preamble

P IK OM , the N ational ICT Association of M alaysia, has once again taken the lead to compile the ICT Job M arket

Outlook in M alaysia, 2013 in collaboration with JobStreet.com and K PM G. P IK OM was mainly responsible

for data collation and coordination over and above its provision of ICT industry-specifi c information and

outlook. On its part, Jobstreet.com provided the latest salary report of ICT professionals by industry, job

market outlook in the respective ICT segments, and survey-based economic perception of job seekers and

industry players. M eanwhile, KPM G took on the task to present M alaysias economic outlook.

For regional comparisons, due references were made to web published salary information by PayScale Salary

R eport. T he average salary of IC T professionals in M alaysia is compared against selected Asian and English

speaking countries that have become attractive destinations for M alaysian talent migration or talent soliciting.

The Asian countries considered in the report include Singapore, I ndonesia, Thailand, Philippines, M alaysia,

China, K orea and India. T he English speaking nations covered include U nited States of America, U nited

K ingdom, Canada, Australia and N ew Zealand.

PIKOM is the national representative of the information and communications technology (ICT)

industry with more than 1,500 members as at end of 2012. Its members contribute about 80% of

the total ICT revenue in the country.

JobStreet.com is the largest online recruitment service provider for all categories of jobseekers,

from fresh jobseekers after graduation to senior level positions. Job Street operates the JobStreet.

com (www.JobStreet.com) websites presently covering the employment markets in Malaysia,Singapore, Philippines, Indonesia, India, Japan and Thailand. The group currently services over

50,000 corporate customers and over 6 million jobseekers. Job Street is listed on the Main Board of

Bursa Malaysia Securities (JOBST).

KPMG is an international network specialising in audit, tax and advisory service. KPMGfirst

established a presence in Malaysia in 1928 and the Malaysian firm now has 65 partners and over

1,700 staff located across 10 offices. Globally, KPMG operates in 144 countries with a staff size of

137,000 people.


9/52

7


The main objective of this report is to provide data and information on the following:-

i. Average ICT Salaries by Industry

Agriculture / P lantations / Aquaculture

Automotive / H eavy Industry / M achinery

Banking Institutions

Chemical Industries

Construction / Building, including Civil Engineering

Consulting, both Business and Technical

Private Education

Electrical & Electronics Sector

Financial Services / Securities / Insurance/

H otel / Restaurant / Food Services

M anufacturing

O il / Gas / Petroleum Industries

Printing / Publishing

Property / Real Estate

Technology / Aerospace / Bio-technology

Semiconductor / Wafer Fabrication

Services

Telecommunication

Textiles / Garment

Transport / Storage / Freight / Shipping

U tilities

Wholesale / R etail / Trading

Call Centre / ICT-Enabled Services

Computer / IC T (H ardware)

Computer / IC T (Software)ii. Average Monthly Salaries of ICT Professionals by Job Category

Overall ICT Professional

Junior ICT Executive fewer than 4 years of experience including fresh entrants

Senior ICT Executive 5 years and above of working experience

M iddle ICT M anager as declared by the job seekers

Senior ICT M anager as declared by the job seekers

iii. Average Monthly Salaries of ICT Professionals by Key ICT Industry Segments

ICT Hardware

ICT Software

Call Centre

iv. Top 10 Specialisations Sought

v. Regional Benchm arking with Selected Asian Economies

vi. Perception by Job Seekers and Employers

Jobstreet.com Employee Confi dence Index (JECI )

Anticipated H iring Activities

Top 10 Specialisations Sought

Position Level Sought


10/52

8


I t is pertinent to note that the average monthly salary of ICT professionals for 2012 was RM 6,784, registering

an increase of 8.7% from R M 6,240 the previous year. T he record also showed that the ICT professionals

in the Senior M anager, M iddle M anager and Senior Executive categories experienced significant pay rise

of 14.1% , 9.9% and 9.6% respectively in 2012. I t is also observed that the salary gap between the Senior

M anagers and the fresh graduates has widened from 5.44 times in 2011 to 5.71 times in 2012. Such trends

are considered unhealthy for the ICT industry where the employment market has been tight over a number of

years and, as such, the industry will continue to face problems in retaining its younger staff from job hopping

in search of higher remuneration.

Like in the previous years, the oil and gas sector continued to be one of the attractive sectors for ICT professionals,

especially those in the junior categories. I n terms of geographical locations, the study discovered that the

typical salaries of ICT professionals in major cities lik e Kuala Lumpur and Cyberjaya is 1.75 times higher than

of those who work in smaller cities lik e Ipoh or Kuching. Such disparity is likely to continue in accentuating

youth migration to cities that are already overcrowded. The data also showed that big companies tend to pay

as high as 1.88 times more than those in the small and micro categories which have less than 10 employees.

The study also interestingly revealed that male ICT professionals earn, on average, 34% higher salary than

their female counterparts.

Among the various types of job functions investigated, those in ICT Project M anagement tend to earn

significantly higher salary than those in the technical or engineering fields. For instance, in 2012 a typical

ICT Project M anager earned an average monthly salary of RM 9,700, which is almost twice of that earned by

a Junior Software Engineer or 50% more than that of a Senior Software Engineer.

Besides publishing average annual salaries earned by ICT professionals in seven Asian countries, namely

H ong Kong, Singapore, China, Thailand, I ndia, the Philippines and Indonesia, the report also provides

data for five English speaking nations namely U nited States, U nited K ingdom, Canada, N ew Zealand and

Australia that typically attract M alaysians for employment. For mak ing meaningful comparisons, the regionalsalary data took into consideration the Purchasing Power Parity (PPP) factor. I nstead of just publishing the

average annual salaries, once again the reporting is done in terms of scaling numbers, which essentially

highlighted how many times higher or lower the salaries are compared with other regional markets. Among

Asian countries, H ong Kong once again topped the salary scale, where the salary was 1.90 times (with

PPP adjusted) higher or 2.53 times (without PPP adjustments) higher than their counterparts in M alaysia

in 2012. Similarly, Australia and U SA topped the list among the English speaking destinations. Specifically,

ICT professionals in Australia netted 3.76 times (without PPP adjustments) higher or 1.90 times (with PPP

adjusted) higher than the data reported for M alaysians in this report.

H ot ICT jobs varied across technical, business applications and soft skills categories. In the technical domain,

ICT professionals equipped with Java, C#, C+ +, dotNet, SharePoint and Web Application Developers are

highly sought after. U nder business applications, the notable fast growing jobs are IT Security Analyst and

Big Data Analytics for fending off cyber threats and culling out customer insights from petabytes systems

respectively. The demand for both the technical and business applications jobs are attributed to prolifi c

growth experienced in cloud computing and mobile applications.

The report also carries information on the perception of job seekers and potential employers, in particular

pertaining to economic performance and ICT job market outlook as gauged by Jobstreet.com on a regular

basis. Generally the job seekers and providers indicated a positive outlook for M alaysia in 2013.


11/52

9


Malaysian Economic andICT Industry Outlook


12/52

10


The M alaysian economy grew at an average rate of 5.2% in 2012. The Government of M alaysia has projected

an economic growth of between 4.5% and 5.5% in 2013 ( Figure 1). H owever, M alaysias economic growth

predictions for 2013 vary widely among private fi nancial institutions, international agencies and research

institutions. Specifi cally, the M alaysian Institute of Economic Research (M IER ) has predicted continuity of

resilience in the M alaysian economy in 2013 with a growth rate of 5.6% . T he economic growth predictions

made by R oyal Bank of Scotland and the Overseas Chinese Bank ing Corporations (OCB C) were 5.5% and

5.2% respectively, which were much higher compared to other private institutions. T he predictions made by

International M onetary Fund (IM F) , Asian Development Bank (AD B) and World Bank ( WB) were 4.7% , 4.8%

and 5.0% respectively, which is signifi cantly lower than M IER , citing the effect on the export mark et by the

continuing global economic slowdown as the key reason for the lower forecast. Although M alaysias growth

rate was lower than expected at 4.1% in Q1, 2013, the economy is expected to rebound with economic

improvement in the US and positive growth in China.

-10

-8

-6

-4

-2

0

2

4

6

8

10

12

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

1993

1992

1991

1990

9 .0 8 .9 9 .2 7 .36 .1

8 .9

0 .5

5 .4

5 .8 5 .3

5 .8 6 .54 .7

6 .86 .8

5 .1 5 .2

5 .5

-1.7

-7.4

9 .5 9 .9 9 .8 1 0 .0

Pre Asian Financial Crisis 1997: 9.2% p.a.

Pre Global Financial Crisis 2009: 5.6% p.a.

Projected to grow by 5.5 % p.a. in 2 0 1 3 by Economic Report

Figure 1: Malaysias GDP Growth (%): 1990-2013

H owever, P IK OM is optimistic and concurs with M IER s prediction of 5.6% . The resilience in the M alaysian

economy is poised to continue in 2013 and can be attributed to the following factors:-

i. strong domestic demand arising from economic transformation programmes and on-going mega projects;

ii . increased export earnings owing to strengthening of R inggit M alaysia against U S dollars;

ii i. stable overnight lending rates stimulating business investments;

iv. sustained private and public consumption and expenditure;

v. low inflation rate;

vi. low unemployment rate;

vii . steady and positive growth in the various economic sectors, especially in the Information Communications

Technology Services ( ICT S) ; and

viii. higher economic growth forecasts for China, India and ASEAN countries, where at least 60% of M alaysias

total trade is concentrated at and is highly lik ely to bring a positive impact on the M alaysian economy

in 2013.


13/52

11


N onetheless, the M alaysian economy is not totally free from economic encumbrances and faces a number

of investment related risk factors such as:-

i. External environm ent:R isk aversion strategy among potential investors due to globalisation and market

liberalization phenomena;

ii . M acro policy environm ent: Any slacking in the delivery of economic transformation initiatives, mega

projects and geographically defi ned corridor projects;

iii. Reducing fi scal defi cit: Poor management on the part of the Government in its ambitious task in

reducing the fi scal defi cit from 5.4% of GDP in 2011 to 3% in 2015 may dampen public expenditure

and investments, unless the Government achieves the target through revenue-increasing measures or

operational cost reduction strategies;

iv. M acro indicators:Fluctuation in oil and commodity prices in global markets could result in higher prices

for consumers through increasing inflation and base lending rates;

v. Capital fl ight:M assive capital outflow arising from volatile foreign exchange rates is also bound to hurt

export and import earnings;

vi. Quality of M alaysian workforce: Over dependence on low skilled foreign workers may not be healthy

for the M alaysian economy in the long term unless a concerted effort is made to increase the quality

of the local workforce, ingrained with technological capabilities, innovation culture, R & D capabilities,

productivity, quality and competitive edge best practices;

vii. 13th General Election:Typically, during the post-election period the Government takes cognizance and

reminds the public of i ts pledges and promises, and therefore tends to implement developmental projects.From a business perspective, it is imperative and crucial to ensure a familiarity of policies and regulations

now that GE13 is done and dusted. The Government should also review policies that may have run their

course as this will garner wider public support and boost investor confi dence.

ICT Industry OutlookAs it was in the past, the ICTS segment in M alaysia is projected to register signifi cant growth in 2013. The

ICT S segment grew at a Compound Annual Growth Rate (CA GR ) of 13.3% by increasing its value added

services from R M 12.3 billion in 2001 to R M 55.1 billion in 2012 (Figure 2). The ICTS segment is poised to

reach the mark of RM 61.7 bi llion in 2013 by registering another annual growth rate of 12% . In tandem, the

share of ICT S in the national Gross Domestic Product (GDP ) increased from 3.4% to 6.3% , almost doubling

during the period of 2001-2012.

Traditionally, telecommunications and computer services constitute the ICTS segments as per M alaysian

Standard Industry Classifi cation 2000 ( M SIC2000) . The introduction of M SIC2008 saw the inclusion of

publishing services, motion picture, video and television programme, programming and broadcasting and

information services as additional items. The new additional segments constitute about 11% of the total ICTS

sector contribution in terms of value added services.

P IKOM is confi dent of achieving double digit growth rate in the years ahead through on-going capital intensive

economic transformation programmes and mega-projects that have been stimulating domestic demand forICT Services. To name a few, the ICT intensive big projects include M y Rapid Transit (M RT ) linking Kajang

and Sg. B uluh, P etronas Refi nery and Petrochemical Integrated Development (R APID) project in P engerang,

Tun R azak Exchange, R iver of Life, B andar M alaysia at Sungei Besi as well as the various economic corridors


14/52

12


Iskandar M alaysia, N orthern Corridor Economic Region (N CER ) , East Coast Economic Region (ECER ) ,

Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCOR E) .

10

20

30

40

50

60

70

80

20132012201120102009200820072006200520042003200220012000

1 2 . 3 1 3 .7 1 4 .8 1 5 .518 .1

2 224 .4

2 7 . 6 3 1

3 7

4 3 . 14 8 . 2

5 5 . 1

6 1 . 7(R M Billion)

ValueinRinggitMalaysia

Figure 2: ICTS Value Added Services : 2001-2013

Source: Department of Statistics and PIKOM Estimates

The ICT sector, in its contemporary form, has evolved to be more than a mere collection of technological

tools. A s a socio-economic enabler and key driver of businesses, ICT is poised to increases the process

effi ciency and product and services delivery effectiveness.

ICT s ubiqui ty and pervasive features and characteristics are continually impacting the way one works, plays

and learns. In the early stages of information age, such changes were succinctly harnessed through the M SC

M alaysia initiative that saw its introduction in the mid-nineties. H aving gone through two decades of new age

experiences and exposures, viewing from a public policy perspective, the country is migrating into i ts nextphase of inflection point by creating a digital innovation economy through the Digital M alaysia P rogramme

(DMP) .

From a private sector lens, the DM P is expected to increase business activities while at the same time

addressing key national concerns such as creating opportunities for the B40 income group ( the lowest 40%

in household income) , youth, women and digital entrepreneurs.

In 2013, industry pundits are projecting at least four key trends changing the way in which fi rms work, which

in turn, impacts on economic growth. The four key trends are:

i. Big data analytics, which are deployed in a variety of industries to serve customers better by culling out

insights and predictions that the data can generate. The process can help to improve the profi tabili ty

of the company by assessing credit worthiness, risk analysis and/or data supported decision making

processes;

ii . Cloud computing, which is one of the fastest growing technological advances, helps companies to

structure, organise and store large amounts of data without investing heavily on hardware and software

tools. M ore importantly, company employees always remain connected with the help of smartphones and

tablets. With such a work culture, people need not be in the offi ce to complete their tasks; they can do

their work from the train or bus on their daily commute, besides teleworking from home;

ii i. M obile device usage, particularly smart phones and tablets, mak e customers and clients more mobile

and also provides access to companies websites, applications and records wherever they happen to be;


15/52

13


iv. Social media, an offspring of the Internet age. This new age media, though seen as a disruptive and

unproductive activity when staff unnecessarily waste time, can be a powerful tool for customer

engagement, relationship building, networking, information sharing, and soliciting feedback, as well as

branding products and services.

Despite growing dynamism, the nations ICT sector continues to face several persistent challenges:

i. Supply of ICT Graduates:As it was in the recent past, ICT enrolment in both public and private institutions

has stagnated. The ICT enrolment in the public universities has not improved much, as the fi gure has

been lingering around 25,000 per year over the past three years. U nderstandably, with budget constraints,

it will be diffi cult for public universities to increase their capacity to produce more ICT graduates. ICT

enrolment in private universities also has not improved very much and averages around 50, 000 per year,

which, notably, is half than what it was a decade ago.

ii . Quality of ICT Graduates:Quality, competency and employability of ICT graduates in meeting the industrys

demands continue to remain a critical issue. Low remuneration, especially in comparison to regional

countries, rampant job-hopping for better terms of employment, and a declining interest among young

people in ICT jobs that demand long working hours continue to plague the growth of the ICT industry.

H owever, initiatives by TalentCorp, which was established in January 2011, helped to redress some of the

talent gaps in the ICT sector. The ini tiatives are carried out via three strategic thrusts: optimise M alaysian

talent, attract and facilitate global talent and build networks of top talent. Being new, these endeavours

are yet to be realised.

iii. Quality and Com petency Standards of H um an Capital in ICT Firm s:The ICT industry, including its workforce,

generally lacks the interest in attaining global standards in process and quality improvement activities.

P IKOM s internal investigation revealed that only 6% of M alaysian Information Communications Technology

Service (ICTS) providers have attained Capability M aturity M odel Integration (CM M I) certifi cations and lessthan 1.5% are equipped with the People Capability M aturity M odel (PCM M ) certifi cation. The numbers

were further disheartening upon realising that less than 2% of PIK OM members in the ICT S segment have

employees certifi ed with Six Sigma or Lean Six Sigma accreditations. G reen ICT Certifi cations have yet to

gain a foothold in the M alaysian ICTS landscape. Pursuant of these certifi cations is critical for globalising

M alaysian ICT products and services, or to solicit ICT contracts from developed economies lik e USA;

and

iv. Research, developm ent and com m ercialisation culture:Public and private universities and industries are

still behind in creating globally-recognised ICT products and services due to the lack of a strong R& D

and patenting culture. Despite the long established presence of some multi-nationals, the country still

has weak links in the global R& D and innovation network. This is due to diffi culties in getting the right

candidates to embark on high value adding ICT activities that the Government has been passionate about

over the past two decades.


16/52

14


ICT Job MarketSalary Trends


17/52

15


Job CategoryOverallThe average monthly salary of an ICT professional in M alaysia in 2012 was RM 6,784 (Figure 3) . This represents

an increase of 8.7% from RM 6,240 in 2011. T his increase was well above the average inflation rate of 3.2%

in 2011 and 1.6% in 2012, resulting in a comfortable living for ICT professionals in M alaysia. G iven the

optimistic outlook of the economy and other positive factors within the ICT industry, P IKOM anticipates an

8.9% rise in the average salary of ICT professionals in 2013, to a fi gure no less than RM 7,387 per month.

4000

4500

5000

5500

6000

6500

7000

7500

8000

20132012201120102009200820072006

4,184 4,446 4,699 5,276 5,626 6,240 6,784 7,387

Average

MonthlySalary(RinggitMalaysia)

AverageM onthlySalary

4 , 1 8 4 4 , 4 4 6

4 , 6 9 9

5 , 2 7 6

5 , 6 2 6

6 , 2 4 0

6 , 7 8 4

8 . 7 %

8 . 9 %

7 , 3 8 7

Figure 3: Average Salary of ICT Professionals: 2006-2013

Source: Jobstret.com and PIKOM, 2013

By Job Category and Years of Working ExperienceI t can be seen from Table 1 that all ICT job categories, except Junior Executive, registered signifi cant increase

in the average salary in 2012. ICT professionals in the middle management level received the highest averagerate of pay rise of 14.1% , followed by senior management (9.9% ) and senior executive category (9.6% ) .

Junior executives received only a raise of 1.7% where their average monthly salary increased from R M 3,151

in 2011 to RM 3,206 in 2012. The fresh graduates are, on average, netting a monthly salary of RM 2,343,

which is considered as a signifi cant rise from R M 2,238 in the preceding year .

By Job Category

YearFresh

Graduates:

(Entry Level)

JuniorExecutive:(1-4 Years

WorkingExperience)

SeniorExecutive:(> 5 Years

WorkingExperience)

MiddleManagement:

(Manager)

SeniorManagement:

(Senior

Manager)

Overall

2 0 1 0 - 2,936 4,514 7,005 10,795 5,626

2 0 1 1 2,238 3,151 5,039 7,837 12,166 6,240

2 0 1 2 2,343 3,206 5,521 8,946 13,374 6,784

PercentageChange (%)

4.7 1.7 9.6 14.1 9.9 8.7

Benchmarking Against Average Monthly Salary of Fresh Graduates

2 0 1 1 1.00 1.41 2.25 3.50 5.44

2 0 1 2 1.00 1.37 2.36 3.82 5.71

Table 1 : Average Salary of ICT Professionals by Job Category: 2010-2012



18/52

16


From Table 1, it can also be observed that Senior M anagers earned 5.44 times higher than fresh graduates

in 2011 and 5.71 times higher in 2012. Similarly, the fi gures for M iddle M anager level were 3.50 and 3.82

while for Senior Executives it were 2.25 and 2.36, indicating a widening disparity in the salary structure.

Industry CategoryTable 2 and Table 3 show the average monthly salary of ICT professionals by industry.

Industry(Central M alaysia)

Fresh Graduates / Entry Level(Less than 1 year working experience) %

ChangePercen ti les (Ringgi t M alaysia) We ighted M ean

2 5 th 5 0 th 7 5 th 2 0 1 2 2 0 1 1

Automotive/Heavy Industry/M achinery 1,800 2,300 2,300 2,175 2,175 0.0

Bank 2,000 2,500 2,700 2,425 2,225 9.0

Call Centre/IT-Enabled Services 1,800 2,300 2,700 2,275 2,275 0.0

Computer/IT (Hardware) 2,000 2,400 2,670 2,368 2,213 7.0

Computer/IT (Software) 2,000 2,500 2,800 2,450 2,400 2.1

Construction/Building 1,715 1,800 2,775 2,023 1,800 12.4

Consulting (Business/Technical) 2,000 2,350 2,600 2,325 2,275 2.2

Education 1,600 2,000 2,331 1,983 1,975 0.4

Electrical & Electronics 1,950 2,310 2,800 2,343 2,063 13.5

Financial Services/Securities/Insurance 2,000 2,230 2,800 2,350 2,225 2.6

Hotel/R estaurant/Food Service 1,800 1,800 3,750 2,288 2,225 2.8

M anufacturing 2,150 2,540 2,800 2,508 2,508 0.0

Oil/Gas/Petroleum 2,300 2,800 3,200 2,775 2,418 14.8

Printing/Publishing 2,000 2,000 3,200 2300 2,225 3.4

Science & Technology/Aerospace/BioTechnology 2,500 2,500 2,500 2500 2,350 6.4

Semiconductor/Wafer Fabrication 3,280 3,280 3,280 3280 3,280 0.0

Services 1,900 2,030 2,500 2115 2,000 5.8

Telecommunication 1,700 2,200 2,500 2150 2,120 1.4

Transport/Storage/Freight/Shipping 1,600 2,300 2,800 2250 2,284 -1.5

Wholesale/Retail/Trading 1,500 1,950 2,300 1925 1,800 6.9

Geometric Mean (GM ) : (Ringgit Malaysia ) 2 3 4 3 2 ,2 3 8 4 .7

M inimum ( R inggit M alaysia ) 1 9 2 5

M aximum (R inggit M alaysia ) 3 2 8 0

Table 2: Average Monthly Salary of ICT Graduates by Industry in 2012


Fresh graduates by IndustryTable 2 shows that the Semiconductor and Wafer Fabrication industries paid the highest monthly salary of

R M 3,280 for fresh graduates in 2012 but had not changed since 2011. H owever, the Oil and G as industry

registered a signifi cant rise in the monthly salary for fresh graduates from R M 2,418 in 2011 to RM 2,775 in

2012, recording the highest percentage increase of 14.8% . This is followed by the Electrical and Electronics

industry where the average salary for fresh graduates increased by 13.5% , which is an increase from R M 2,063

in 2011 to RM 2,343 in 2012. ICT graduates in the Construction and Building industry also experienced

a signifi cant increase of 12.4% in their salary. Besides Semiconductor and Wafer Fabrication, industrieslike Automotive and H eavy Industry, M anufacturing, Transport, Storage, Freight and Shipping as well as

Call Centre and IT enabled Services did not show any improvement in the average salary for fresh graduates

in 2012.


19/52


20/52


21/52

19


Experienced ICT Professionals by IndustryThe highest salary earned by ICT professionals differed among industries as well as by the number of years

of working experience held. Table 3 shows that the Automobile, H eavy Industry and M achinery as well as

the Computer Hardware industries were the top-paying ones in the senior management category, where the

maximum monthly salary recorded was RM 17,438 in 2012. No data was reported for Semiconductor and

Wafer Fabrication, Construction and Building and Chemical industries where the pay could also be equally

high. In the middle management level, the maximum monthly salary of RM 14,091 was reported in the

Electrical and Electronics industry. In the senior executive level, the O il and G as industry reported the highest

monthly salary of RM 7,500. For the junior executive level, the Semiconductor and Wafer fabrication industry

offered the highest salary of RM 3,753 per month.

Comparison Between 2011 and 2012 by industryTable 4 shows that, on overall, the Automotive, Heavy Industry and M achinery, Science & Technology, Aerospace

and Bio-technology as well as the Financial Services industries registered a significant rise in the salary for the

ICT professionals of not less than 10% between 2011 and 2012. D iscounting the sectors lacking data, Table 4

also shows that ICT professionals in the Senior M anagement category working in the Financial Services industry

received the highest salary increment of 36.2% , which is an increase from RM 10,250 to RM 13,961 . Further

scrutiny revealed that in the M iddle M anagement category, the Science & Technology, Aerospace and Bio-

technology industry reported the highest percentage of change (38.6% ) in the monthly salary from RM 7,339

in 2011 to RM 10,175 in 2012. In the Senior Executive category, the Services and Science & Technology,

Aerospace and Bio-technology industries recorded the highest pay rise of 32.8% and 29.8% respectively. T he

Automobile, H eavy Industry and M achinery industry registered the highest pay rise of 14.9% in the Junior

Executive category, which is an increase from RM 3,100 in 2011 to RM 3,563 in 2012.

Top Five Paying Industries


ALL JOBCATEGORIES


Senior Executive(5 or more years

working experience)

Oil/Gas/Petroleum 8,316 Oil/Gas/Petroleum 7,280

Automotive/Heavy Industry/M achinery 7,289 Chemical 7,107

Science & Technology/Aerospace/BioTechnology 7,259 Telecommunication 6,675

Telecommunication 7,099 Science & Technology/Aerospace/BioTechnology 6,500

Services 7,034 Consulting (Business/Technical) 5,879


SeniorManagement

(Senior Manager)


Junior Executive(1-4 workingexperience)

Automotive/Heavy Industry/M achinery 17,438 Chemical 5,215

Computer/IT (Hardware) 17,400 Oil/Gas/Petroleum 3,675

Oil/Gas/Petroleum 16,521 Semiconductor/Wafer Fabrication 3,653

M anufacturing 14,150 Automotive/Heavy Industry/M achinery 3,563

Bank 13,961 Bank 3,475


MiddleManagement

(Manager)


Fresh Graduates

Electrical & Electronics 14,091 Semiconductor/Wafer Fabrication 3,280

Semiconductor/Wafer Fabrication 11,183 O il/Gas/Petroleum 2,775

Oil/Gas/Petroleum 10,504 Science & Technology/Aerospace/BioTechnology 2,500

Science & Technology/Aerospace/BioTechnology 10,175 Computer/IT (Software) 2,450

Wholesale/Retail/Trading 9,409 Bank 2,425

Table 5 : Top Five Paying Industries by Job Category, 2012



22/52

20


Table 5 shows the top fi ve paying industries for each ICT job category. O f the 25 industries covered in

the investigation, the results showed that the Oi l, Gas and P etroleum industry dominated the list in all the

categories. It is followed by Science & Technology, Aerospace and B io-technology industry which constituted

as one of the top fi ve paying industries for all the job categories, except in the Senior M anagement level for

which the salary remained stagnant between 2011 and 2012.

ICT Industry SegmentsFor the purpose of compiling salary records, Jobstreet.com had categorised the ICT industry segments into

ICT hardware, ICT software and ICT-enabled services including call centres.

By Job CategoryFigure 4 shows the average salaries of ICT professionals by job category within the ICT industry. The salary

increment experienced by all ICT job categories except the Senior M anager category was not very encouraging.

The worst hit were ICT Junior Executives who received only a 1.5% pay rise on an average between 2011 and

2012 (see also Table 6) . On the contrary, in 2012 Senior M anagers in the ICT sector experienced an average

pay rise of 11.6% , which is an increase from R M 12,588 in 2011 to RM 14,044.

0

3000

6000

9000

12000

15000

ICT Senior M anagerICT M iddle M anagerIC T Senior ExecutiveICT Junior Executive

3 ,082

3 ,129

4 ,778

4 ,912

7 ,322

7 ,533

12 ,588

14 ,044

AverageSalary

inRinggitMalaysia

2008 2,440 3,681 5,837 8,975

2009 2,689 4,061 4,938 9,867

2010 2,797 4,417 5,957 10,876

2011 3,082 4,778 7,322 12,588

2012 3,129 4,912 7,533 14,044

Figure 4: Average Monthly Salary of ICT Professionals by ICT Industry Segments


Within the Senior M anager category, ICT hardware professionals netted the highest pay increase of 20.2% , a

jump from RM 14,475 in 2011 to RM 17,400 in 2012 (Table 6). I CT Senior M anagers in the ICT Call Centres/

IT Enabled services and ICT Software categories also registered signifi cant rise in their salary, 9.0% and 6.0%

respectively.


23/52

21


Year

ICT Executive ICT Senior Executive

ICTHardware

ICTSoftware

CallCentre/ICT

EnabledServices

ICTIndustry

ICTHardware

ICTSoftware

CallCentre/ICT

EnabledServices

ICTIndustry

2008 2,325 2,500 2,500 2,440 3,400 3,924 3,749 3,681

2009 2,767 2,557 2,748 2,689 4,130 3,869 4,190 4,061

2010 2,720 2,750 2,925 2,797 4,320 4,505 4,428 4,417

2011 3,002 3,025 3,225 3,082 4,769 5,019 4,556 4,778

2012 3,100 3,063 3,225 3,129 4,835 5,160 4,750 4,912

% change2011-2012

3.3 1.3 0.0 1.5 1.4 2.8 4.3 2.8

Year

ICT Middle Manager ICT Senior M anager

ICTHardware

ICTSoftware

CallCentre/ICT

EnabledServices

ICTIndustry

ICTHardware

ICTSoftware

CallCentre/ICT

EnabledServices

ICTIndustry

2008 5,075 5,995 6,538 5,837 7,971 8,475 10,700 8,975

2009 5,052 5,930 4,018 4,939 9,405 8,998 11,350 9,567

2010 6,625 6,646 7,548 6,957 10,900 9,250 12,758 10,876

2011 6,718 7,263 8,051 7,322 14,475 10,000 13,779 12,588

2012 6,800 7,575 8,300 7,533 17,400 10,600 15,019 14,044

% change2011-2012

1.3 4.3 3.1 2.9 20.2 6.0 9.0 11.6

Table 6: Average Monthly Salary by Job Category and ICT Industry Segment


By ICT User IndustriesFigure 5 shows the distinction in the average monthly salary earned by ICT professionals working in the ICT

Producer and ICT U ser industries. As in the previous year, there is no distinct difference in salaries earned

by ICT professionals in these two segments. The 2012 data revealed that ICT professionals in the Producer

industry on the overall earned an average monthly salary of RM 6,355, which is marginally higher than their

counterparts in the U ser industry where the average was only RM 5,903.

0

2000

4000

6000

8000

10000

12000

14000

16000

Junior Executive:

(1-4 Years Working

Experiance)

Senior Executive:

(> 5 Year Working

Experience)

M iddle M anagement:

(M anager)

Senior M anagement:

(Senior M anager)

Ringgit

Malaysia

IC T User Industries 13,364 8,519 5,408 3,216

ICT Producer Industries 13,735 9,354 5,437 3,236

Figure 5: Average Monthly Salary of ICT Professionals by Job Category, ICT User Industries and

ICT Producer Industries



24/52

22


Selected Key ICT Job FunctionsThe average monthly salary earned by key ICT professionals is shown in Table 7. It can be seen from this

table that ICT professionals in the managerial category, whether they are Java, H TM L, SQL or M CP certifi ed,

netted the highest earnings compared to other ICT job functions. I T Project M anagers can net an average

monthly salary as high as RM 17,500, which is almost two times higher than software engineers, who tend to

net as high as RM 7,917 per month only. As expected, the Senior Software Engineer, on an average, netted

R M 6,638 per month, which is 50% higher than the earnings of Software Engineers. On an average AutoCAD

engineers were paid R M 4,783 monthly and the experienced ones can net as high as RM 10,000 per month.

Being a highly specialized job, the average monthly salary earned by SAP Consultants in 2012 was RM 8,542

and the experienced ones netted as high as RM 16,667. Web designers earned the lowest monthly salary,

an average of just RM 3,692 monthly, among the listed jobs.

Job FunctionsMean

MonthlySalary

MedianMonthlySalary

MinimumMonthlySalary

MaximumMonthlySalary

Information Technology, Project M anager (Java, HTM L,SQL, M icrosoftCertified Professional)

9,700 7,100 4,667 17,500

SAP Consultants 8,542 7,647 3,833 16,667

Information Technology Consultants (Java, HTM L and M CP) 7,242 6,967 3,667 13,333

Senior D atabase/ System A dministrators ( M icrosoft and Cisco Certifi ed) 7, 021 6, 867 4, 250 11, 667

Senior Executive Engineer (Java, H TM L,SQL, M icrosoft CertifiedProfessional (M CP ) and Cisco)

6,638 5,973 3,500 11,667

Database/System Administrators (M icrosoft and Cisco Certified) 4,783 4,327 2,042 10,000

AutoCAD: Civil Engineering 4,783 3,419 2,167 10,000

Software Engineer (Java, H TM L,SQ L, M icrosoft Certified Professional(M CP) and Cisco)

4,567 2,997 2,417 7,917

Software Developer/Programmer (Java, HTM L,SQL) 4,317 3,778 2,417 7,167

Programmer/Analyst (Java, HTM L,SQL) 4,288 3,432 2,417 7,000

HTM L, Web Designer 3,692 2,773 1,583 6,917

Table 7: Average Monthly Salary of ICT Professionals by Job Function 2012

Source: (http://www.PayScale.com/research/ ) and PIKOM

Years of Working ExperienceTypically one expects the salary of an employee to go up in tandem with the number of years of working

experience. A s shown in Figure 6, the median salary of those have more than 20 years of working experience

earned 5.22 more than those who have less than one year of working experience.

0

2000

4000

6000

8000

10000

12000

20 year or more10-195-91-4Less than 1 Year

1 .001 .31

2 .24

3 .39

5 .22

MedianSalary(RinggitMalaysia)

/

BenchmarkingScale

M edianSalary (R M )

2,244 2,935 5,019 7,616 11,717

Figure 6: Median Monthly Salary of ICT Professionals and Benchmarking Scale by Years of

Experience, 2012



25/52

23


Employment SizeEmployment size matters in determining the average monthly salary of employees. As shown in Figure 7,

large corporations or multinationals (M N Cs) tend to pay higher than smaller ones. Comparing against the

smallest sized companies in the 1-9 employees category, which is taken as the baseline, the median salary

paid by companies with more than 2,000 employees was 1.88 times more.

0

1000

2000

3000

4000

5000

6000

7000

8000

M ore than

2000

600-1999200-59950-19910-491-9

1 .00 1 .031 .27

1 .4 2 1 .6 0

1 .88

MedianSalary(RinggitMalaysia)/

BenchmarkingScale

M edian Salary (R M ) 3,390 3,493 4,321 4,805 5,426 6,363

Figure 7: Median Monthly Salary of ICT Professionals and Benchmarking Scale by Employment

Size, 2012


Geographical LocationAs shown in Figure 8, ICT professionals working in Kuala Lumpur and Cyberjaya tend to earn 1.75 times

higher than their counter parts working in smaller locations lik e Ipoh. Even within the Klang Valley, the

disparity in the salary is quite distinct, where the average median salary of ICT professionals in Petaling Jaya

or Shah Alam tends to be lower than their counterparts in the capital city.

0

1000

2000

3000

4000

5000

6000

IpohKuchingShah AlamJohorePetaling JayaCyberjayaKuala Lumpur

1 .75 1 .73

1 .381 .20 1 .19

1 .0 3 1 .0 0

MedianSalary(RinggitMalaysia)/

BenchmarkingScale

M edian Salary (R M ) 5,092 5,024 4,022 3,499 3,472 2,982 2,906

Figure 8: Average Monthly Salary of ICT Professionals by Geographic Locations, 2011


GenderDespite gender equality, the salary data interestingly revealed that male ICT professionals tend to earn a

median salary of RM 5,201 while females earned a median salary of only RM 3,855, which work out to a 35%

difference.


26/52

24


Gender M edian Salary (RM)

M ale 5,201

Female 3,855

(M ale salary / Female Salary) 134.9

Table 8: Gender Disparity in ICT Salary in Malaysia, 2012


Hot ICT JobsH ot ICT jobs depend on the area of applications, as depicted in Figure 9. Specifi cally, in the technical

domain, software developers, programmers and engineers equipped with knowledge of Java C#, C++ , .N et,

SharePoint and Web Application Development are highly sought after. B eing an open platform and the ability

to speak to any back end system, large organisations in particular need Java programmers to transfer data

from legacy systems. D emand for network engineers and system administrators is on the rise in tandem with

the expanding scope of cloud computing and Windows 7 related migration activities.

Within the Business Applications domain, the demand for ICT professionals also vary greatly. Though

demand for certifi ed professionals in SAP or ERP are at an all time high, professionals specializing in I T audit

and IT security are proliferating, especially in fending off malware makers and cyber thieves. In addition,

organisations shifting towards cloud computing are spurring the need for infrastructure professionals. Big

Data Analytics is also a fast growing job area, especially in big companies desiring to extract insights from

their petabytes of stored data. The best candidates for Big Data Analytics jobs are those equipped with inter-

disciplinary knowledge and experience pertaining to not only technical know-hows but also with a strong

statistical/mathematical background. Simi larly, demand for mobile application developers and user interface

designers who can develop user friendly and versatile applications are also on the rise.

Irrespective of technological evolutions, the demand for soft-skilled professionals especially in project

management, consulting, process and quality improvements is ever present.

TECHNICAL C# Java C++ .NetCertified Network/

System Engineers

Certified Database

Administrators

APPLICATIONS SAP ERP IT Audit IT Security Help Desk Analysts Big Data Analytics

SOFT SKILLSProject

M anagementIT Consulting

Business Process

Improvement

Quality

Improvement

Figure 9: Hot ICT Jobs by Area of Applications

Source: JobStreet.com


27/52

25


RegionalBenchmarking


28/52

26


Table 9 shows a comparative analysis of the remuneration earned by ICT professionals in selected A sian

and English speaking countries. Here, average remuneration earned by each country is compared against

M alaysia, giving rise to a scaling factor that is free from bias caused by foreign exchange fluctuation. For

the purpose of this benchmarking exercise, M alaysia assumes a scaling factor of one. The median data

published by PayScale for the year 2012 was used. All measurements are tallied in U S dollars. T he average

value for each country is compiled after taking into consideration three variables, namely IT skills, company

size and years of working experience. Two types of benchmarking scales were published, specifi cally one

with purchasing power parity (PPP ) that takes into account inflation rates and fluctuations in the foreign

exchange rates and the other without PPP adjustment. Indeed, technically speaking, ambitious job seekers

should use PPP adjusted fi gures when searching for overseas jobs.

Comparison Against Asian CountriesWithout any PPP adjustment, the results showed that more advanced Asian economies, in particular Hong

K ong and Singapore, recorded average remunerations that were 2.25 to 2.54 times more than the average

remuneration earned by M alaysian ICT professionals in 2012 (Table 9) . B esides these two countries, China,

Thailand and Vietnam offer higher remunerations for ICT professionals, offering 1.87, 1.36 and 1.20 times

more than in M alaysia respectively. Comparatively, I ndonesia, India and Philippines offer lower remunerations

to their ICT professionals. With P PP adjustment, which takes into account for inflation and foreign exchange

rates as well as standard of living, the result showed that H ong Kong still ranked the highest paying nation in

Asia for ICT professionals. H owever, the scaling factor is only 1.90, which is signifi cantly lower than the non-

PPP adjusted scaling depicted earlier. Simi larly, the scaling factors for Singapore and China lowered to 1.84

and 1.63 respectively. Surprisingly, Vietnam recorded a higher scaling value of 1.87, indicating a much more

attractive nation in Asia for talent migration.

Country IT Skil/Speciality CompanySize Year ofExperience

Average

BenchmarkScale

IT Skil/Speciality CompanySize Year ofExperience

Average

BenchmarkScale

Benchmarking Scale: Malaysia=1.00(Atlias Method)

Benchmarking Scale: Malaysia= 1.00(Purchasing Power Parity (PPP) Adjusted)

M alaysia 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00

Singapore 2.25 2.23 2.31 2.26 1.74 1.72 2.06 1.84

Thailand 1.35 1.49 1.22 1.36 1.45 1.59 1.05 1.36

India 0.50 0.42 0.56 0.49 0.71 0.60 0.68 0.66

China 1.66 2.06 1.89 1.87 1.54 1.91 1.44 1.63

Phillipines 0.15 0.39 0.47 0.44 0.45 0.40 0.46 0.44

Vietnam 1.10 1.10 1.41 1.20 1.61 1.62 2.39 1.87

Hong Kong 254 2.59 2.35 2.53 1.95 2.06 1.69 1.90

Indonesia 0.66 0.73 0.79 0.73 0.57 0.63 0.47 0.56

UnitedK ingdom

2.67 2.41 2.45 2.51 1.38 1.24 1.79 1.47

Canada 3.25 2.96 2.95 3.05 1.57 1.48 2.16 1.72

New Zealand 3.08 2.74 2.75 2.86 1.74 1.55 2.25 1.84

Australia 4.08 3.52 3.59 3.76 1.80 1.60 2.31 1.90

USA 3.43 3.11 3.17 3.24 1.85 1.68 2.70 2.08

Table 9: Benchmarking Salaries Earned by ICT Professionals of Selected Countries and Malaysia,

2012



29/52

27


M alaysians are typically known to search for better opportuni ties beyond the shores of Asia. The distant

lands that become attractive destinations for M alaysians are mostly English speaking countries, in particular

U nited States of America, U nited K ingdom, Canada, Australia and N ew Zealand. Despite the distance, these

countries have long diplomatic and trade ties with M alaysia. M oreover, English is a popular lingua franca

among M alaysian businesses especially among the private sector and there has been always a natural

attraction for M alaysians to do more businesses with such English speaking countries. These destinations

are no exceptions for ICT Professionals as well, especially software developers and networking engineers who

are in demand at all times globally.

Figure 10 shows that the Australian and U SA job markets offer the highest remuneration, 3.76 and 3.24

times more respectively without PPP adjustments than what a typical ICT professional in M alaysia can earn.

But, taking into considerations of PPP adjustments, the USA becomes a higher paying destination than

Australia, that is, 2.08 and 1.90 times respectively. Without PP P adjustments, Canada with its 3.05 scaling

factor also appeared as an attractive destination for ICT jobseekers but the PPP adjusted value reducing to

1.72 suggested otherwise. Simi larly, U K s scaling factor reducing from 2.51 without PPP adjustment to 1.47

PPP adjusted does not suggest it to be a very attractive destination as an ICT job market. Indeed, it can be

seen that the cost of living and foreign exchange fluctuations have signifi cant impact on the salaries earned

and thus, becomes a crucial consideration factor for potential job seekers before making any decision on job

related migrations.

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

USA

Australia

HongKong

Vietnam

New

Zealand

Singapore

Canada

China

United

Kingdom

Thailand

Malaysia

India

Indonesia

Phillipines

0.44

0.44 0

.73

0.56

0.490

.66

1.00 1

.36

2.51

1.87

3.05

2.26

2.86

1.20

2.53

3.76

3.24

1.00

1.36 1

.47

1.63

1.72 1.8

4

1.8

4

1.8

7

1.90

1.90 2

.08

Atlas

M ethod0.44 0.73 0.49 1.00 1.36 2.51 1.87 3.05 2.26 2.86 1.20 2.53 3.76 3.24

PPP

Adjusted0.44 0.56 0.66 1.00 1.36 1.47 1.63 1.72 1.84 1.84 1.87 1.90 1.90 2.08

Figure 10: Benchmarking Salaries Earned by ICT Professionals in Malaysia and Selected Countries,

2012



30/52

28


Employment OutlookAnd Perception


31/52

29


This report also attempts to present the overall IC T job market outlook from an industrys perspective and

from the perception of potential jobseekers. A total of 227 JobStreet.com clients, managers and senior

managers across various industries in M alaysia participated in this survey conducted in February 2013.

JobStreet.com Confidence Index (JECI)The JobStreet.com Employment Confi dence Index (JECI ) , which is compiled on a monthly basis, is shown

in Table 10. JECI ranges from zero (very poor) to 100 (very good) . A low index shows a tough job market

situation where employment seekers fi nd it diffi cult to get a job. A high index indicates a comfortable job

market, where people are able to secure a good job easily.

As shown in Figure 11, the JECI has signifi cantly dropped from 51.6 in 2011 to 48.8 in 2012, before it shot

up slightly in January 2013, indicating increasing confi dence in the local job market.

Month 2 0 1 3 2 0 1 2 2 0 1 1 2 0 1 0 2 0 0 9 2 0 0 8 2 0 0 7 2 0 0 6 2 0 0 5 2 0 0 4 2 0 0 3 2 0 0 2 2 0 0 1

JAN 49.1 50.5 52.2 47.0 44.9 50.7 52.6 49.6 47.6 41.7 36.2 31.2 42.0

FEB 50.9 52.5 48.7 43.1 49.0 52.7 50.1 47.4 42.3 31.7 31.8 41.5

MAR 50.4 51.2 48.8 43.8 51.8 52.4 49.7 43.3 41.6 34.6 35.7 39.4

APR 48.8 53.2 51.4 46.9 49.7 51.2 50.4 42.8 39.0 31.0 35.2 40.1

MAY 49.7 51.9 51.9 47.8 49.2 50.0 49.9 44.0 39.6 28.7 36.9 37.5

JUN 49.8 53.5 48.1 48.5 48.9 50.1 50.2 41.1 46.4 34.1 35.0 37.5

JUL 41.3 54.1 50.2 49.7 47.9 50.4 47.8 42.0 43.5 32.5 34.7 34.9

AUG 50.9 52.3 51.9 50.2 50.1 48.7 50.1 49.6 45.1 32.7 36.2 32.9

SEPT 48.7 48.8 61.0 48.7 49.6 49.5 50.7 48.6 51.9 34.7 34.0 30.5

OCT 48.8 51.0 53.7 48.3 49.6 48.6 49.6 46.8 49.6 32.9 32.7 32.4

NOV 48.7 49.2 51.6 50.0 47.6 49.3 51.7 47.1 51.3 37.0 34.5 31.2

DEC 48.1 49.4 49.7 50.2 47.3 49.6 51.9 49.0 49.9 36.8 31.6 31.5

Table 10: Job Employment Confidence Index: January 2001- January 2013

Source: Jobstreet.com

30

40

50

60

2013201220112010200920082007200620052004200320022001

36 .134 .1

33 .6

45 .2

45 .8

5 0 .1 5 0 .449 .3

47 .7

5 1 .2 5 1 .6

48 .8

49 .1

JECIIndex

Figure 11: Job Employment Confidence Index: 2001-Jan 2013

Source: Jobstreet.com and PIKOM


32/52


33/52

31


2.50

2.55

2.60

2.65

2.70

2.75

2.80

2.85

2.90

Q1:2013Q1:2012Q1:2011Q1:2010

2 .62

JHIS

2 .69

2 .62

2 .86

JHIS 2.62 2.69 2.62 2.86

Figure 13: Job Hiring Index Score 2010-2013Source: PIKOM

Top Specializations SoughtAs reflected in Table 11, for most industries jobseekers in sales and marketing are still the most sought after,

followed by those with expertise in manufacturing, accounting and engineering. In comparison with the last

quarter, three new specializations have entered the top 10 list. They are manufacturing, engineering, and

mechanical engineering. R espondents from major industries such as hotel & restaurants, fi nance computer

and IT, mining (oil & gas) reported that they would most likely experience a better job growth in the next 12

month.

Top 10 specializations employers seek

1 Q 2 0 1 3 4 Q 2 0 1 2

1 1 Sales

2 2 M arketing

3 (new) M anufacturing

4 8 Accounting

5(new) Engineering (Others)

6 6 Engineering (Electrical)

7(new) Engineering (M echanical)

8 7 Human R esources

9 9 General Administration

10 4 Customer Service

Table 11: Top 10 Specializations Employers Seek, 2012 -2013

As mapped out in Table 12, the top specializations employers seek has changed over the past fi ve years.

Sales, marketing and business development jobs are consistently ranked among the top most sought after

jobs. Interestingly Computer & IT (Software) , which ranked either third or fourth positions from 2009 to 2012,did not get into the top ten specializations employers seek for the year 2013. On the contrary, manufacturing,

mechanical engineering and other engineering jobs drew attention of potential employers. Customer service

category is also seen sliding down the top ten.


34/52

32


2 0 1 3 2 0 1 2 2 0 1 1 2 0 1 0 2 0 0 9

Sales M arketing and businessdevelopment

M arketing and businessdevelopment




Sales / M arketing(merchandising)




M anufacturing Customer Service Computer & IT

(Software)

Customer Service Computer & I T

(Software)

Accounting Computer & IT(Software)

Customer Service Computer & I T(Software)

Engineering M echanical

Engineering (Others) Engineering M echanical Human Resources Engineering M echanical Sales / M arketing(technical)

Engineering (Electrical) Human Resources Top Management Human Resources Customer Service

Engineering(M echanical)

General / CostAccounting

Sales / M arketing(technical)

Sales / M arketing(technical)

Human R esources

Human Resources Sales / Marketing(technical)




G eneral A dm inistration M ai ntenance C omputer & I T(Hardware)

Top M anagement

Customer Service Engineering Electrical Education, Training &

Development

Clerical / G eneral

Administration

Top M anagement

Table 12:Top Specializations Sought Trend: 2009-2013

Position Level SoughtAccording to respondents, 52% are looking for junior level positions which require less than 4 years of

experience followed by 24% who are looking at people with specialised skills, such as accountants and

engineers (Figure 14) . O nly 13% of the respondents are looking for fresh graduates. H uman resource

managers in many industries expressed diffi culties in hiring fresh graduates as many candidates without

working experiences are demanding a high salary. M anagerial levels and above might be experiencing a

more diffi cult period as only 11% of the respondents are looking to fi ll such positions.

0% 10% 20% 30% 40% 50% 60%

Top M anagement (P resident, CEO, GM )

Director / Vice President

M anager / Assistant M anager

Supervisor / Specialist

Junior level (less than 4 years

experiance)

Fresh graduate 1 3 %

5 2 %

2 4 %

1 1 %

0.9%

Figure 14: Job Positions Sought After in 2013


35/52

33


Rethinking HR in a Changing World:A Practitioners DiscourseBY WOO N TAI HAI, EXECUT IVE DIR ECTOR, K PM G M ALAYSIA


36/52

34


IntroductionIn the last 5 years, there has been a preoccupation with cost optimisation, cost reduction, sustainable cost

management.. . all things cost. This has required H R to play its part, largely through making the HR function

more effi cient, but not necessarily more effective.

N o one expects this focus on costs to change in the short to medium term.

But there is a clear case for HR functions to also generate value in the wider business and that there are some

signs that this drive for value creation from H R will become increasingly important.

The big three challenges to HRs new growth agendaThe people agenda in most organisations contains some truly business-critical issues and the need for H R to

rise to the big three challenges has never been more acute. T he big three challenges to HR s new growth

agenda are:

balancing the global and the local1. managing, hiring and identifying talent globally while retaining

important local insights

managing a flexible and virtual workforce2. but not at the cost of loyalty and career development

retaining the best talent3. maintaining employee engagement in the face of a less committed, more

flexible workforce.

These big three challenges and other key

fi ndings were derived from a global study

by the Economist Intelligence Unit between

M ay & June 2012, commissioned by KPM G

International. The Global study of 418

executives comprised with more than one-third(37 percent) of respondents who identifi ed

themselves as C-level executives; with the

remainder being at the management level up

to senior vice-president. M ore than one-half

of respondents (58 percent) primarily serve

an HR function; the remainder (42 percent)

represents a wide range of other functions.

The respondents are based in Asia-Pacifi c (32 percent), Europe (30 percent), N orth America (28 percent)

and Latin America (10 percent). A wide range of industries is represented, including manufacturing and

energy & natural resources (both at 12 percent) , IT, fi nancial services, and healthcare & pharmaceuticals

(all at 11 percent). M ore than one-half of the companies surveyed (53 percent) boast more than 10,000

employees 22 percent have over 50,000; the remaining 47 percent have between 1,000 and 10,000

employees.

The global study, aptly entitled, R ethink ing H uman R esources in a Changing World examines the nature

of the challenges facing the HR function and its future direction. The reports main fi ndings include the

following:

HR is struggling with the challenges of managing a global, flexible workforce. The global workforce has

become increasingly integrated across borders while simultaneously growing more virtual and flexible.These developments have made the retention of key talent and bui lding workforces in new markets the

top priorities of HR departments over the last 3 years. Survey respondents expect little change in the next

3 years. Yet only about one in four respondents say that H R at their company excels at core issues such


37/52


38/52

36


Doing the basics better and more efficiently M oving

toward a more self-service model has improved basic HR

service effi ciency while freeing up H R to focus on delivering

more strategic services that add value to the core priorities

of the business.

Better training M oving away from classroom training

toward a more interactive, demonstrative approach. This

has been a very positive development and had a very

powerful impact. It enables employees to learn in more

bite-sized chunks and in a much more visual manner.

Creating a positive culture and brand for current employees

and potential hires N ew technologies are playing an

important role in how we connect people in the organisation

and how we create a culture that is a medium for people.

Organisations are exploring how to use technology to create

a company brand that is attractive to people joining it.

The next step: data-driven HRData analytics is the most commonly cited area (selected by 31 percent of respondents) for planned H R

technology investment in the next 3 years. Analytics will allow HR to not only be involved in managing

talent, but to also collect clearer information on its supply chain of talent and where the most demand for

particular skills lies. R ather than acting on instinct alone, the HR function will be able to provide a far more

granular roadmap of how the organisations people resources need to be reshaped to deliver on the corporate

strategy.

Data analytics gives HR departments the long-overdue chance to become more empirical, to provide hard

evidence for their opinions, thereby gaining much-needed credibili ty at the highest levels of the business.

K ate Terrell, vice president, H uman R esources, Global Products Organisation, at Whirlpool Corporation, a

household appliance manufacturer, explains: When you arm a business partner of the future with analytics,

and they can share the facts with their teams to help drive better decision-mak ing, it allows you to be much

more strategic, much more insightful, and potentially, much more laser-focused on where you should be

spending your time.

The future of HR: Eradicating the stigmaIt is practically a business truism that the H R function is not well respected at many organisations. Whether

deserved or not, this stigma is clearly evident in the global survey results.

Only 15 percent of our survey respondents see HR as able to provide insightful and predictive workforce

analytics.

Only 17 percent view it as able to demonstrate measurably its value to the business.

Strik ingly though, 81 percent of respondents see talent management as a key competitive advantage over

the coming 3 years. There clearly remains a vast gulf between the perceived importance and the perceived

effectiveness of H R today. At the very least, H R has a perception problem. In many cases it may haveactually failed to deliver real value. As the shifting challenges of globalisation and virtualization combine

with the new technological tools available to enable a reshaping of the HR function, executives should take

ROBERT BURTON

K P M G

H R Transformation

Center of Excellence

I believe... that HR functions have tried for

the past 15 years to tranform themselves

into strategic players and earn a place

at the leadership table. But theyve done

so with limited success because they have

focused on rolling out generic HR models

and universal best pratice, rather than

customized solutions that support the value

drivers of the business. Now theyve caught

in what I call the doom loop.


39/52

37


a number of steps to improve the functions contribution

and its image.

Make the value of HR more prominentand understoodPerceptions about H R in the wider company may arise

from the very nature of its role. As the HR function works

behind the scenes, many in the organisation may not

be aware of the good things that it is doing. This is an

inevitable part of being a staff support role where HR is

the architect and the line managers are owners of the

work, says Professor Ulrich.

H R practitioners need to make sure the company knows and understands the value they can deliver, in part

by insisting on being included in strategic conversations. It also involves understanding the needs of the

whole business better in order to mak e that contribution. Learning to listen deeply is one of the skills that HR

functions need to develop, not only in terms of the context of their role but in terms of continually improving

the organisation.

Think, understand and communicate in the language of businessH R needs to eliminate the jargon of its specialization (the same challenge IT continues to face) and begin

to link its work more explicitly to business value. The right business language helps to open the door, but it

is also important to provide a robust business case for projects. It entails thinking more carefully about the

specifi c business outcomes of the actions that H R recommends. What is the impact on customer service, or

the reduction in costs, or the increase in staff loyalty, or other metrics that are more specifi cally relevant to

the line managers and departments being supported? Importantly, it is also about taking a fuller perspectiveof the whole business, including both internal factors as well as external business conditions, and creating

H R strategies to fi t. In turn, this requires a far deeper grasp of the organisations core business model and

strategy and the implications this holds for the rest of the business to date, something that far too few H R

practitioners have mastered. To put this in context, a business that fundamentally focuses on providing low-

cost goods will require a fundamentally different HR strategy than one that is focused on delivering leading-

edge innovation.

Move from administration to higher-value-added activitiesA technology-enabled HR function will allow professionals to avoid being immersed in the minutiae of record-

keeping, transactions and life-cycle processes. But it will also likely reduce the number of H R staff that

companies require. These slimmed-down departments will then be able to focus on providing more strategic,

higher-order services.

Some of HR s traditional administrative work will almost inevitably fi nd another functional home, a shift that

45 percent of respondents expect to occur in the next 3 years. There is no compelling reason for H R to

manage the transactional administration of payroll, benefi ts, pensions or mobility (transfer administration) ,

particularly where managed on a contractual outsourcing basis. O f course, H R would remain the architect

of these systems. But once the desired model is established, there is no reason why H R needs to pedal the

wheels.

PAULETTE WELSING

K P M G

H R Transformation

Center of Excellence

I believe... well thought-out predictive workforce

analytics could become as important to the

CEO as the blalance sheet and P&L statement.

Technology and workforce analytics could

really shake up HR as we currently know it.


40/52

38


ConclusionR ethink ing Human R esources in a Changing World has provided us with a fresh view of the path ahead for

leaders of the HR function. We believe that a number of areas such as workforce analytics, talent management

and technology will reinforce the need for H R to mak e the people agenda as important to business leaders

as the balance sheet and P& L statement.

M any of the challenges identifi ed in the global study are long standing. But they are no less urgent for that.

Indeed, there is no escaping the prospect of a shrinking and weakened HR function in the coming years.

Quite simply, H R has to break out of the trap it has been stuck in for far too long.

U nfortunately, there are no simple solutions, no generic approaches or best practices that will suddenly

enable the H R function to become more effective and respected. H R needs to focus on delivering unique

talent solutions tailored to each companys circumstances and requirements.

To do this, H R must develop a deep understanding of the business in the same way, and using the same

language , as other managers. The measures it proposes must be tied to business outcomes: the impact

on customer service, the reduction in costs, the support of a specifi c new growth area, the increase in staff

loyalty and so on.

While communication has a role to play, particularly when it comes to managing expectations after all, HR

needs time to do its work the required antidote is a relentless focus on identifying ways of adding value to

the rest of the business, and proactively meeting the needs of HR s customers.

For many H R functions, data analytics is an ingredient that has long been missing, for example, it is a way

of providing hard evidence about employee-related needs and opportunities and the impact of H R . T he

insights that can be gleaned from rigorously collecting and analyzing data, and creating insightful forecasts

on the back of i t, is a key tool in enabling HR to shape the organisations people resources to deliver on itsunderlying corporate strategy.

But this is not just about employing the latest technologies or tools. It is about the HR function using an

empirical approach to deliver a unique and differentiated people management strategy that is closely aligned

with the companys goals and in the process of doing so, restoring H R s much-needed credibi lity at the

highest levels of the business.

This study suggests that H R perceives its biggest current challenge to be seizing the opportunity to transform

itself into a strategic player.

AcknowledgementsThe above article was a reproduction from a global study by the Economist Intelligence Unit between M ay &

June 2012, commissioned by KPM G International.


41/52

39


The Right Talent DevelopmentStrategy for Top Talents?BY KEN LEE, DIRECTOR , KP M G M ALAYSIA


42/52

40


IntroductionYour organisation is unique, and so is the mix of talent you need to deliver your business strategy. Why, then,

do so many organisations continue to take a generic best practice approach to one of their most important

strategic levers: how best to develop their top talents?

Do you develop your top talents the same way as you develop the broader employee population? Or should

you take a unique and out-of-the-box approach?

After all, how well an organisation develops its talent can make or break i ts business. Developed well, and the

organisation will be singing in harmony. B ut developing talents poorly and things soon start going off key.

Your talent strategy for your organisation depends largely on how well youre able to develop your top

talents differently so that you will continue to win in your markets. What follows are several ideas to help guide

you through this process and fi nd a compelling approach on H ow best to develop your top talents with the

right talent development strategy .

Who are your Top talents and why are they different from everybodyelse?Since the publication of M cKinseys seminal study on War for Talent in 1998, many organisations to take

the stand that managing talents is similar to managing their human capital. This view has evolved over time.

Talents have been studied , assessed and measured countless times and approaches and defi nitions

for talent spotting are many. What remains clear is that views onpotential is somewhat a generally acceptable

word associated to talent.

One approach to identify top talent is based on their performance and potential.

On assessing performance, a typical approach is to look at performance ratings and the track record ofconsistently delivering high performance. When it comes to assessing potential, it is It is universally recognized

that potential is a diffi cult thing to objectively assess. N evertheless historical performance alone is not enough

to predict future success. Some of the valuable prompts used to assess potential include key questions

related to ambition, abili ty, and engagement.

Two sets of illustrative components used to assess talents are:

VALUE

Performance

PerformanceManagement Process

Potential

Talent ManagementProcess

TRACK RECORD ABILITY AM BITION ENGAGEM ENT+ + + +

For each of these criteria above, organisations (traditionally HR practitioners) will need to support the business

by asking further questions and by pushing them to provide specifi c examples.

Your top talents are those quality people who are your next generation of leaders, critically important to the

future success of your business. They are also known as the Emerging Leaders a term used to explain

the strategic importance of leaders who are committed to role modeling, coaching and inspiring others to be


43/52

41


the best they can be. They are your top 5% and differ clearly from the rest of the 95% . M any organisations

continue to place strong emphasis on high-potential employees, a critical talent pool. They are provided with

different career paths and development strategies.

Benefits of having a different developmental strategy for your top talentsOne of the direct benefi ts of developing your talents differently is that it will enhance your ability to retain

top talents. This has been a proven strategy for organisations that are committed to invest on developing

their next generation of leaders. As top talents are the top 5% , A performers, many of organisations

maximize the contribution of talent people by providing them with stretch experiences to allow them to make

a difference. What we have also found in recent years, is that increasingly, many organisations have begun

this process of developing their top talents in their early stage of their careers. This will not only build greater

breadth in the required leadership skill sets but inspire the key talents to extend their bandwidth as industry

recognized leaders in their market place.

For the top talents, studies have indicated that it provides them with the ability to make an impact and

maximize contribution to the fi rm. A differentiated developmental track makes them feel valued as an

Emerging leader and this goes a long way in terms of retaining them.

What is the best development model?A preferred developmental strategy for nurturing top talents is to provide them with adequate stretch

experiences. These stretching experiences have been identifi ed by many successful Leaders and professionals

- have indicated through their feedback that stretch experiences have given them the transformational skills

and experience to add the most value to their development and progress in their careers. The stretch should

help top talents develop ski lls that help set them apart from the broader employee population, prepare them

to meet client challenges and the career hurdles ahead. Below are some examples of stretch experiencesthat are aimed at ensuring top talents get a wide variety of experience as they work towards becoming the

next generation of leaders.

The following example is a combination of experiences which have been structured around what top talents

typically perform in their role. While many organisations may adopt a different approach to develop people

along with their unique competencies, this example is only intended to be a generic one which will help

provide some ideas which you can take away:.

Business Development & SalesYour ability to spot and convert business opportunities for your organisation is key to your future success

grow ing accounts, leading successful pitches, bids and converting new relationships into clients for your

organisation and leading and contributing to a variety of sales.

Some stretch ideas:

Negotiation. Provide real opportunity to experience fi rst hand negotiation with a substantial stake with

key target clients.

Evidence of winning work. Experience winning new work based on personal relationships developed,

marketing initiatives lead and long term relationship development. Establish their own profi le/brand in the

market to generate a pipeline of future sales

On a Key Account for a key client , Play an active role on a strategic Key Client Account, taking responsibili ty

for driving forward account management activity.Involvement in a significant pitch/bid/proposal . P lay a key role because of your specialist technical or

sector knowledge.

Cross selling. Draw on a wide internal network to facilitate introductions to clients that lead to cross


44/52

42


function sales or invitations to tender, beyond the initial scope of the work. M aintained and invested in

developing relationships with clients

Evidence of leading a major pitch. Lead a complex, high value and/or highly competitive major pitch with

minimal support from Leadership, resulting in a win or positive client feedback and strong sustainable

relationships.

Develop a new business area, value proposit

ict job market outlook

Documents