ICT Job Outlook Malaysia 2013

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<ul><li>1.PUBLISHED BY IN COLLABORATION WITH ICT JOB MARKET OUTLOOK IN MALAYSIA JUNE 2013 </li></ul><p>2. ICT Job Market Outlook in Malaysia June 2013 Published by: In collaboration with 3. COPYRIGHT Copyright 2013. All rights reserved. No part of this publication may be produced or transmitted in any form or any means, 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 &amp; 1107, Block B, Phileo 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 Medan Tuanku 1, (off Jalan Sultan Ismail), 50300 Kuala Lumpur, Malaysia T: +(603) 2176 0493 (DL); F: +(603) 2698 7200 W: www.jobstreet.com E: marketing-kl@jobstreet.com KPMG Malaysia, Level 10, KPMG 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 Release date: June, 2013 Editor-in-Chief: Ramachandran Ramasamy, Head of Policy, Capability and Research, PIKOM Contributor: Dominic Wong, Senior Marketing Manager Malaysia, JobStreet.com Reviewed by: Woon Tai Hai, Executive Director, KPMG Malaysia DISCLAIMER This publication contains ndings based on data provided by JobStreet.com Sdn Bhd (449122-K). KPMG Business Advisory Sdn Bhd (150059-H) and PIKOM Services Sdn Bhd (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, kindly be informed that this release is not presented to address the circumstances of any particular individual or entity. As such, JobStreet.com, KPMG and PIKOM including their sponsors, partners and associates, whether named or unnamed, do not warrant the accuracy or adequacy of the data and ndings. Moreover, all parties concerned explicitly disclaim any liability for errors or omissions or inaccuracies pertaining to the contents of this publication. Therefore, the use of data and ndings presented in this publication is solely at the users risk. PIKOM, JobStreet.com and KPMG 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 ndings published in this series. However, professional advice can be sought from the producers of this publication. 4. iii ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 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 5. iv ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 Message by PIKOM Chairman WOON TAI HAI In its endeavour to champion the Information Communications Technology (ICT) industry, PIKOM has once again successfully produced the annual ICT Job Market Outlook in Malaysia report. This outlook is made possible with the continuing support of Jobstreet.com and KPMG. In order to provide more comprehensive information, due references have also been made to PayScale web-based information, wherever possible. As in the past, the typical information published includes average monthly salaries of ICT professionals, job sentiment index, top paying ICT jobs, hot ICT jobs in demand and the hiring outlook. The salary information is broken down by industry, job category, employment size and geographical location. As an additional feature, this series is accompanied by median data for various types of job functions, gender and years of working experience. Regional data on selected Asian countries and English speaking nations that Malaysia has close diplomatic and trade ties, is provided once again. This time, however, besides atlas based criterion the publication also included Purchasing Power Parity (PPP) adjusted salary information that essentially takes into account foreign exchange uctuations and ination rates as well as living standards and costs. As the PIKOM Research Committee Chairman, I would like to see more effort taken in addressing the human capital development issues and challenges. From the employees perspective, the issues and challenges of talent migration to better paying destinations are still affecting the industry. As reected once again in this outlook, countries such as Hong Kong, Singapore and China in Asia and Australia, New Zealand and United States of America in the English speaking world have a much higher capacity for remuneration which is bound to attract competent Malaysian ICT professionals. If timely efforts are not taken in addressing this dilemma, it will be harder for the industry and the nation as a whole to become globally competitive and productive. On the other hand, employers are equally facing a quandary in getting industry ready ICT graduates. Employers are hesitant to invest in training or equipping fresh graduates with the right skills and knowledge in an employment environment where job hopping is highly prevalent. To overcome this problem, the industry needs to put in place appropriate strategies and measures that can help to enhance staff loyalty. Obviously, competitive remuneration is one of the options for staff retention. PIKOM would like to take this opportunity to record its sincere thanks and appreciation to Jobstreet.com and KPMG for their invaluable contributions. PIKOM is optimistic that these industry partners will continue to offer their enduring support in the years ahead. PIKOM believes that with its expanded scope and coverage, this outlook will continue to serve its members, industry players and investors, as well as mainstream policy formulators. 6. v ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 Message by PIKOM President/CEO SHAIFUBAHRIM SALEH PIKOM is once again pleased to publish the annual ICT Job Market Outlook in Malaysia report. As in the past, this series continues to provide information on average monthly salaries earned by information and communications technology (ICT) professionals in Malaysia in 2012. The report revealed that the ICT job market in Malaysia 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 (PaaS), 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, PIKOM has reviewed and realigned its ve-year strategy plan during its 2013 planning session. Specically, human capital development is positioned as one of the six key strategies. The others include enhancing value to members, accelerating growth demand, leading the digital trend and increasing competitiveness and globalisation of the Malaysian ICT industry. In human capital development, PIKOM 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 Malaysian talents from overseas as well as the Board of Computing Professionals Malaysia (BCPM). Once again, I would like to take this opportunity to record my sincere appreciation to Jobstreet.com and KPMG for their effort in making this publication into another milestone for PIKOM. 7. 6 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 Preamble PIKOM, the National ICT Association of Malaysia, has once again taken the lead to compile the ICT Job Market Outlook in Malaysia, 2013 in collaboration with JobStreet.com and KPMG. PIKOM was mainly responsible for data collation and coordination over and above its provision of ICT industry-specic 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. Meanwhile, KPMG took on the task to present Malaysias economic outlook. For regional comparisons, due references were made to web published salary information by PayScale Salary Report. The average salary of ICT professionals in Malaysia is compared against selected Asian and English speaking countries that have become attractive destinations for Malaysian talent migration or talent soliciting. The Asian countries considered in the report include Singapore, Indonesia, Thailand, Philippines, Malaysia, China, Korea and India. The English speaking nations covered include United States of America, United Kingdom, Canada, Australia and New 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. KPMG rst established a presence in Malaysia in 1928 and the Malaysian rm now has 65 partners and over 1,700 staff located across 10 ofces. Globally, KPMG operates in 144 countries with a staff size of 137,000 people. 8. 7 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 The main objective of this report is to provide data and information on the following:- i. Average ICT Salaries by Industry Agriculture / Plantations / Aquaculture Automotive / Heavy Industry / Machinery Banking Institutions Chemical Industries Construction / Building, including Civil Engineering Consulting, both Business and Technical Private Education Electrical &amp; Electronics Sector Financial Services / Securities / Insurance/ Hotel / Restaurant / Food Services Manufacturing Oil / Gas / Petroleum Industries Printing / Publishing Property / Real Estate Technology / Aerospace / Bio-technology Semiconductor / Wafer Fabrication Services Telecommunication Textiles / Garment Transport / Storage / Freight / Shipping Utilities Wholesale / Retail / Trading Call Centre / ICT-Enabled Services Computer / ICT (Hardware) Computer / ICT (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 Middle ICT Manager as declared by the job seekers Senior ICT Manager 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 Benchmarking with Selected Asian Economies vi. Perception by Job Seekers and Employers Jobstreet.com Employee Condence Index (JECI) Anticipated Hiring Activities Top 10 Specialisations Sought Position Level Sought 9. 8 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 It is pertinent to note that the average monthly salary of ICT professionals for 2012 was RM6,784, registering an increase of 8.7% from RM6,240 the previous year. The record also showed that the ICT professionals in the Senior Manager, Middle Manager and Senior Executive categories experienced signicant pay rise of 14.1%, 9.9% and 9.6% respectively in 2012. It is also observed that the salary gap between the Senior Managers 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. Likeinthepreviousyears,theoilandgassectorcontinuedtobeoneoftheattractivesectorsforICTprofessionals, especially those in the junior categories. In terms of geographical locations, the study discovered that the typical salaries of ICT professionals in major cities like Kuala Lumpur and Cyberjaya is 1.75 times higher than of those who work in smaller cities like 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 Management tend to earn signicantly higher salary than those in the technical or engineering elds. For instance, in 2012 a typical ICT Project Manager earned an average monthly salary of RM9,700, 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 Hong Kong, Singapore, China, Thailand, India, the Philippines and Indonesia, the report also provides data for ve English speaking nations namely United States, United Kingdom, Canada, New Zealand and Australia that typically attract Malaysians for employment. For making meaningful comparisons, the regional salary data took into consideration the Purchasing Power Parity (PPP) factor. Instead 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, Hong 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 Malaysia in 2012. Similarly, Australia and USA topped the list among the English speaking destinations. Specically, ICT professionals in Australia netted 3.76 times (without PPP a...</p>