Professional Documents
Culture Documents
Final Findings
Developed By:
Public Sector & Government Practice
Frost & Sullivan Asia Pacific
4 Gap Assessment
7 Recommendations
2
0. Overview of the study
• Objectives
• Coverage
Overview of the study
0 Four Main Objectives
Conduct analysis on the existing talent available in Malaysia covering supply of both
1 local and foreign graduates, types of courses and curriculum; and industry requirements
such as skillsets, hiring criteria relating to digital economy
Identify challenges, gaps, trends, relevance of future talents required in the digital
2 economy and provide forecast of required talents until 2020
Propose a strategy, action plan and recommend a comprehensive direction for talent
4 development required to support digital economy growth
4
Overview of the study
0 Covered 10 areas on Demand Side, 5 Types of HEIs and 4 Countries
Focus Areas
Global Business Services Software/ Hardware Creative Content Internet of Things Big Data Analytics
(GBS) Development and Technologies (IoT) (BDA)
International Comparison
5
1. Demand Side Assessment
• Company Profile
• Current Profile of the Workforce
• Human Resource Metrics
• Human Resource Challenges
• Training and Development
Demand Side Assessment
1 Company Profile
64% of the respondents were from tech side mainly involved in software/ hardware development and GBS
% of Non-Tech Companies
36% Oil and gas
% of Tech Companies 8%
E-Commerce Automotive/
15% 9% transportation
Others
IoT 10%
Tech
64% Healthcare
24% CCT 13% Telecomm.
services
GBS Business
Services
Retail
Software/ 29%
25% Hardware Banking/
Development financial services
Manufacturing
53% of them are fully owned by Malaysians and 35% of the companies are mid sized
17% 16%
14%
12%
53%
15%
33%
35%
5%
51% to 80% Local 10% to 50% Local RM 300,000 and less than RM 3 million
RM3 million and RM20 million
100% Foreign
More than RM20 million
In 2017, estimated employees in digital industry was 355,119; Growth in employment in digital industry
is estimated to be 15.0% over next 3 years
409,309
355,119
309,500
Cloud/
Datacentre: 28% GBS: 21% FinTech: 21% CCT: 20% IoT: 19%
Software/ Hardware
E-Commerce: 18% Non-Tech: 14% Development: 12% BDA: 11% Cybersecurity: 10%
63% of employees are involved in core business delivery activities and this proportion is higher in BDA
Software/ Hardware
60% 40%
Development
% of total employees
While 75% of staff are permanent, greater proportion of contract employees are found in cybersecurity and
GBS; cloud/ datacentre companies have higher outsourced employees and more freelancers are found in
non-tech
E-Commerce 84% 3% 7% 6%
Software/ Hardware
82% 15% 2%1%
Development
% of Respondents
Project requirement was the most common reason among respondents for engaging outsourced
employees or freelancers
74 51 43
% % %
67% of the companies surveyed indicated that freelance jobs have greater prospects going forward,
particularly in areas such as FinTech
% of Respondents
100%
80% 78% 75%
67% 63% 53%
More than 65% of the employees in the companies surveyed have 4 or more years of experience
66% of the companies surveyed have talent shortage particularly in intermediate (4 to 7 years’
experience) and experienced category (more than 7 years experience)
Junior (1 to 3 years'
experience)
Experienced (More 12%
than 7 years'
experience)
21%
Intermediate (4 to 7
years' experience)
24%
On an average, 88% of the employees are Malaysians; tech companies have more foreign employees
when compared to non-tech
% of Respondents
11%
10%
9%
Tech 87.0% 13.0%
6% 5%
4%
Limited availability of required skills locally followed by labour cost main reasons for hiring foreign
manpower
49 29 28 19
% % % %
Limited availability of the The cost of hiring foreign Lower attrition rate To fulfil certain linguistics
required skills locally workers is lower requirements
• 3D skill, skills related to • Commonly mentioned
Cyber Security, Informix linguistics requirement
4GL, Digital Marketing,
include Business
Agile DevOps, e-
English, Japanese,
Commerce applications,
Arabic/ Urdu, regional
UX/UI Designers,
languages, French
Hiring foreign manpower is crucial or very crucial for future expansion while 31% of them perceive
regulatory process for hiring foreign manpower is difficult or very difficult
Importance of hiring foreign manpower for future Perception regarding ease of hiring foreign
expansion manpower
35 19 31 21
% % % %
Software/
Cloud/ E-
Cyber Hardware
Overall IoT BDA CCT datacentr GBS Non-Tech FinTech Commerc
security Develop
e e
ment
63% 73% 72% 70% 64% 62% 61% 60% 56% 52% 50%
37% 27% 28% 31% 36% 38% 39% 40% 44% 48% 50%
Top recruitment criteria include years of experience for overall workforce while top recruitment criteria for
Fresh Graduates include CGPA
Recruitment Criteria for Overall Workforce – Based on Survey Recruitment Criteria for Fresh Graduates –
Based on inputs from industry validation
Top 1 Criteria Top 2 Criteria Top 3 Criteria
CGPA
Results / CGPA 5% 9% 8%
Technical Knowledge
19.1%
Attrition Rate %
GBS Software/ Overall IoT CCT Non-tech E-Commerce BDA Cloud/ FinTech Cybersecurity
Hardware datacentre
Development
Highest average monthly salary for fresh graduate was found in in BDA
Highest average monthly salary for junior level and intermediate was found in cybersecurity
Highest average monthly salary for experienced employees was found in BDA
Fresh Graduate (Less than 1 year) Junior (1to3 Years) Intermediate (4 to 7 Years) Experienced (More than 7 years)
Software/ Hardware
2,471 3,587 5,826 9,536
Development
Average Monthly Salary in RM Average Monthly Salary in RM Average Monthly Salary in RM Average Monthly Salary in RM
Average expected increment in salary for 2017 is 5.1%; increment is expected to be highest in cybersecurity
Overall 5.1%
Cybersecurity 6.2%
FinTech 5.8%
GBS 5.7%
IoT 5.7%
BDA 5.6%
CCT 5.3%
Non-Tech 4.4%
E-Commerce 4.2%
Getting candidates with required technical and interpersonal skills, compensation and benefits are the
main HR challenges
59 48 47 34
% % % %
Recruiting employees with Recruiting employees with Recruiting employees with Compensation and benefits
both technical and experience required skillsets
interpersonal skills
While tech companies focuses on technical skills related training, non-tech companies have a balance
between soft skills and technical skills training
#Technical skills are related to mathematical, engineering, and scientific abilities/knowledge required for specific task relating to technology
such as programming/ application development, business intelligence/ analytics
*Digital skills are directly related to the use, development or creation of digital technologies such as web content, digital marketing, game
designer
30.5%
39.5%
30.1%
Utilising HRDF Funds Not Utilising HRDF Funds Non-contributors to HRDF funds
The top barrier indicated by contributors of HRDF was approved training program do not meet their
requirements
44%
35% 35%
32%
% of Respondents
30%
25%
22%
16%
12%
HRDF approved training program do not Inadequate suitable training programmes in No need for training as employees have
meet requirements open market sufficient skills
Developing training programmes based on industry needs were the top cited ways to increase digital
skills training
`
41 36 31 28
% % % %
HRDF approved programs Training programmes jointly Online digital skills training Financial incentives for
developed with the industry developed with the industry courses individuals/employees
Software and application development/ programming languages, database management and networking are
the top three technical skills areas in 2017 and 2020
2020 2017
Database 42%
41%
E-Commerce 23%
23%
Cybersecurity 21%
21%
2020 2017
18.6%
Human Resource Management
17.9%
18.2%
Finance
17.7%
9.0%
Foreign Language Skills
8.3%
% of Employees
Finance
• Management in accounts receivables
• Management in accounts payables
• Management in bank reconciliation & Tax filing & compliance
Foreign Language
• Mandarin
• Japanese
• Korean
OS and Server
Technologies Cybersecurity
Windows Risk assessment & management
Linux Incident handling and response
Android Penetration testing/assessment
e-Commerce related
Emerging Technologies skills
Artificial Intelligence Web development
Automation and robotics e-commerce platform
Integrated Automation/ IoT Search engine optimization
Finance
• Knowledge in accounting software
• Tax filing & compliance
• Fin. Services Risk management
Foreign Language
• Japanese
• Korean
• Mandarin
Software/
GBS Hardware CCT Cybersecurity
Development
• Contact Centre Agent • Programmers/ Developers • Animator • Cryptographer
(Inbound and Outbound) • Software QA Engineer • Visual Effects Artist • Security Specialist
• Technical Helpdesk • System Analyst • Digital Artist • Security Analyst
Analyst • Solution Architect • 3D Modeler • Technical Support
• Contact Centre Team Lead Engineer
(Inbound and Outbound)
Software/
GBS Hardware CCT Cybersecurity
Development
• Contact Centre Agent • Programmers/ Developers • Digital Artist • Security Specialist
(Inbound) • Solution Architect • Animator • Security Analyst
• Accounting Analyst • Software QA Engineer • 3D Modeler • Incident Responder
• Financial Analyst • Team Lead • Graphic Designer • Cryptographer
• Contact Centre Agent
(Outbound)
Of 119k graduates, 37% have digital technology relevant qualifications. Majority of digital talents are qualified
in electrical and electronics, information technology, and creative technology/ arts
Graduate with Digital Technology Relevant Breakdown of Graduates by Digital Technology Relevant
Qualifications Courses
Creative technology,design,
7,562
Nationality of Graduate with Digital Technology music, fine arts
Relevant Qualifications
48% of graduates hold diploma qualifications while 46% of graduates hold bachelors qualifications.
The majority of graduates have CGPAs of between 2.5 to 3.5
Number of Graduates
14,000
12,000
10,000
8,000
6,000
4,352
Diploma 3,403 3,291
4,000
48% 2,450
2,000
Bachelors
46% 0
Pass
2.00-2.49
2.50-2.99
3.00-3.49
3.50-3.69
3.70-4.00
Information Technology
Creative technology,design, music, fine arts
Computer Science
Computer design and graphics
Electric and electronic engineering and telecommunication
Computer application and development
TVET Graduate Statistics - In house training (Sistem Latihan Dua Nasional - SLDN)
250 242
Computer Network Operation 14%
200
3D- Production Support Operations 14%
Graduates
0
Percentage of total graduates
2014 2015 2016
Database 23%
Cybersecurity 23%
Emerging Technologies 6%
Percentage
Finance 19%
Percentage
Finance
• Management in accounts receivables
• Management in accounts payables
• Management in bank reconciliation
Foreign Language
• Japanese
• Korean
• Arabic
The majority of institutions across disciplines review their course content on an annual basis. This trend is
particularly high for IT/ CS
Top three IHLs that companies hire from include MMU, TAR UC, and UTM. The preferred IHLs were selected
for primarily (1) Curriculum that is better aligned with the industry (2) Student/ graduate attitudes
Preferred Institutes of Higher Learning Reasons for the Choosing Preferred IHLs
Limkokwing University 4%
Curriculum better
UPM 3%
aligned to industry 22%
% of Respondents needs
The common form of industry collaboration with education institutions is hosting internship programs for
students
Dialogue with the academia on the current trends and skills 15%
% of Respondents
Teaching faculties from IT/CS have the highest percentage of participation in training
While engineering faculty has the highest number of students undergoing industrial training
35%
Percentage
14%
8%
3%
99% 96%
82%
Percentage
63%
Other engineering, mathematics Information technology/Computer Creative multimedia/Technology Business studies, Finance or
or science science Economics
Top factor hindering collaboration between industry and educational institutions is not having the
bandwidth/time to actively seek out such opportunities.
Our employees do not have the Our lectures do not have the
bandwidth/time to actively seek 53% bandwidth/time to actively seek 71%
out such opportunities out such opportunities
% of Respondents % of Respondents
Both industry participants and academia view that industrial training undergone by students are effective;
similarly 95% of students have found the learning experience gained from the training is useful
83%
Useful
Not Useful
95%
Percentage
45%
7%
13%
4%
Related
Not Related
Somewhat Effective Effective Very Effective
93%
(1) Developing critical thinking skills, (2) Focusing on real world case studies/assignments, (3) Revising
syllabus to better reflect skill requirements of the industry
`
65 63 53 48
% % % %
Development of critical Focus on real world case Syllabus revision to Focus on the teaching
thinking skills studies/ assignments reflect skills requirements applied skills
of the industry
Hosting internship programmes for students was the top form of engagement indicated by industry while
HEIs view that sending employees/ experts for speaking engagements at universities will be useful
Dialogue on the current industry trends Real world case studies for
35% 48%
and skills assignments
Percentage
(1) Establishing forums to discuss skills development 2) Creating awareness of digital industry career options
at secondary schools
% of Companies
Using the demand side and supply side analysis, gaps across 2 buckets are identified:
1) Gaps by Field of Study
2) Gaps by Skills
GAP
59
3.3 Gap Assessment
4 1. Gap in Demand and Supply by Field of Study
Except for scenario 3, surplus of graduates is estimated for 2017 and 2020
Scenario 1
Surplus Supply Surplus Supply
Entire supply pool 66,000
60,700
100,700 126,900
40,000 60,900
Scenario 2
Employable Supply Surplus Supply
Surplus Supply 8,800
Pool 15,300
Scenario 3
Employable Supply
Shortage in Supply Shortage in Supply
Pool willing to join -10,100 -23,200
digital industry
40,000 60,900
29,900 37,700
Except for scenario 1 and in scenario 2-2017 , a shortage of IT graduates is estimated for 2017 and 2020
IT 2017 2020
14,800 22,600
Scenario 3
Employable Supply Shortage Supply Shortage Supply
Pool willing to join -6,600 -11,000
digital industry
14,800 22,600
8,200 11,600
Except for scenario 1 and in scenario 2-2017, a shortage of engineering graduates is estimated for 2017 and
2020
Engineer-
2017 2020
ing
Surplus Supply
Scenario 1 Surplus Supply 4,700
Entire supply pool 7,300
15,300 16,900
12,200
8,000
Demand Supply
Demand Supply
8,400 12,200
8,000 9,300
Demand Supply
Demand Supply
Scenario 3
Employable Supply
Shortage in Supply
Pool willing to join -3,400
Shortage in Supply
digital industry 12,200 -7,200
8,000
4,600 5,000
Demand Supply
Demand Supply
In all the three scenario, surplus of business studies graduates is estimated for 2017 and 2020
Business
2017 2020
Studies
Scenario 1
Entire supply pool
Surplus Supply 56,800
Surplus Supply 44,300
43,400
35,500
8,800 13,400
Scenario 2
Employable Supply
Pool Surplus Supply Surplus Supply
15,500 17,800
24,300 31,200
8,800 13,400
Scenario 3
Employable Supply
Pool willing to join Surplus Supply Surplus Supply
digital industry 4,400 3,500
Except for scenario 1, a shortage of creative/ arts graduates is estimated for 2017 and 2020
Surplus Supply
Scenario 1 5,400
Entire supply pool
13,800 Surplus Supply 14,400
12,800 1,600
8,400
Scenario 2
Employable Supply Shortage in Supply Shortage in Supply
-800 -4,900
Pool
12,800
8,400 7,600 7,900
Scenario 3
Employable Supply
Pool willing to join Shortage in Supply Shortage in Supply
-4,300 12,800 -8,500
digital industry
8,400
4,100 4,300
2,100
4,400 Legend:
Foreign Language Skills Scenario 1
2,400
Entire supply pool
(1,300)
Scenario 2
Employable Supply Pool
12,100
19,800 Scenario 3
Human Resource Management Employable Supply Pool
(10,900)
and Students willingness
(5,900)
to join digital industry
5,600
30,000
Finance
16,500
8,900
67
3.3 Gap Assessment
4 2. Gap in Demand and Supply in non-technical skills in 2020
3,900
5,100
Foreign Language Skills
3,900
Legend:
(2,800) Scenario 1
Entire supply pool
Scenario 2
23,800 Employable Supply Pool
25,300
Human Resource Management Scenario 3
(19,600) Employable Supply Pool
(13,900) and Students willingness
to join digital industry
11,200
41,900
Finance
32,300
23,000
In 2017 only 2 areas were estimated to have shortages in all 3 scenario; by 2020 4 areas are estimated to
have shortages in all 3 scenario
Scenario 2
Enterprise Resource Planning Employable Supply Pool
Scenario 2 and 3 All 3 scenario
(ERP)
Scenario 3
Human Resource Management Scenario 2 and 3 Scenario 2 and 3 Employable Supply Pool
and Students willingness
to join digital industry
Cybersecurity Scenario 3 Scenario 2 and 3
Software development/
Scenario 3 Scenario 3
Programming
Each of the four (4) countries have specific focus on digital talent based on the needs of the ICT sector in the
country
Country Government Policies and Digital Talent Demand Digital Talent Supply Issues and Challenges
Framework
Australia • Focusing on education • Private sector demand • Focus on ICT in Primary • Gender diversity in ICT
and developing skills through ICT infrastructure Education industry
relevant to ICT industry related companies • Private sector driven by • Difficulty in filling up
large tech companies managerial posts In ICT
focusing on reskilling and sector
upskilling
Taiwan R.O.C • Private and Public sector • Public sector driven through • Low Proficiency in
• Large government demand through hardware R&D- specific English Language
expenditure to drive homegrown ICT industry projects in IoT and Green • Heavy focus on
digitalization projects focusing on hardware and Technology by Institutes Hardware R&D
local institutes driving • MNCs increasingly
R&D moving towards
Mainland China
Sweden • Developed government • Private sector demand for • High supply of ICT talent • Falling education
plans to increase digital Programmers and through education system system levels through
proficiency across all developers introduction of reforms
walks of life in Sweden • Supply gap
Singapore • Government focus on • Demand for ICT related • Public Sector driven with • Low Entrepreneurship
education and funding for jobs in services sector collaboration with levels
start up and such as financial services international institutions and • Strong ICT related jobs
entrepreneurship activities and services industry realignment of existing not in ICT sector
education system
71
5 Competitive Assessment Key Learning Points
The Common Themes for the countries assessed are mainly based on the level of economy that the country
resides
Service-based
Economy
Common Themes
Supply: Critical thinking skills, visualization at primary and secondary
level
Demand: Service based economy Diversity, Higher level managers
Linkages: At educational level
Australia
Sweden
Singapore
Supply: Vocational, Technical education and competencies
Demand: Hardware based R&D in ICT
Linkages: At government policy, education and industry levels
Specific Skills Shortage: Hiring of foreign workers from the demand side perspective is largely driven by the
Issue limited availability of the required skills locally (3D skill, skills related to Cyber Security, Informix 4GL, Smartcobol,
1 FPGA, C++, Digital Marketing, Agile DevOps, Oracle, Middleware, e-Commerce applications, UX/UI, Business
Analytics)
Issue Technical and business skills shortage: Companies face challenges to hire employees who are good both in
2 technical and business skills
Increase Fresh Graduates Demand: The survey findings indicate that the talent shortages are predominantly in
intermediate to experience (more than 3 years exp. ) level positions while 12% of companies reported shortages in
Issue junior level (1to3 years exp) and 10% stated shortages in fresh graduate levels. These statistics suggest that the
3 policies focus should be on raising the quality levels of graduates such that it would create graduates that readily
fill junior and intermediate positions would be an option otherwise this may possibly lead to a situation of
oversupply unless
Issue
Under utilisation of HRDF Funds: About 40% of companies contributing to HRDF are not utilising their funds
4
Issue Adequacy of digital training programmes: About quarter of the companies indicated that training programmes
5 relating to digital skills that are currently available are inadequate
Issue Industry and academia collaboration: Both industry and academia are open to collaborations but they do not
6 have bandwidth to leverage on such opportunities
74
6 Key Issues/Takeaways
Issue Participation in industrial training programmes: Industrial training participation among teaching faculty of
7 engineering, business studies, creative multimedia is comparatively lower as compared to ICT
Critical thinking skills and syllabus requires changes: Industry participants indicated that HEIs need to focus
Issue
on improving critical thinking skills among students, and syllabus needs to be revised to better reflect the skills
8
requirements of the industry
Fresh Graduates Shortage: By 2020, fresh graduates supply are estimated to have shortages in IT, engineering,
Issue
and creative/ arts fields of study particularly taking into account employability factor as well as students willingness
9
to consider digital related career
Info Top recruitment criteria of hiring fresh graduates include (1) CGPA, (2) Field of study, (3) Interpersonal skills, (4)
10 Technical knowledge is in alignment with the main objectives of iCGPA
Info All the four countries that were studied, instill critical thinking among students from primary level all the way up to
11 tertiary education
Though Malaysia have similar initiatives for TVET development, TVETs in countries like Taiwan seem to be more
Info
successful . This could be due to the requirement for schools to link up with industry players to ensure students/
12
graduates get industry exposure
Info
Australia and Sweden have minimal government intervention to handle supply and demand of digital talents
13
75
7. Proposed Recommendations
Recommendations
7 Context for developing recommendations
To address the issues and develop the required talents for digital industry, efforts must be driven
by industry and academia facilitated by Government
Nurturing and
Developing talents to
overcome shortages
Industry
and skill gaps
Improving quality of
students in accordance
to needs of the industry
Academia Government
Facilitate talent
development initiatives
77
7 Recommendations
2 Pathway for school students to join vocational courses and get job in digital industry
Enhancing the relevance, availability, and accessibility of training for the digital technology
4 industry
78
Proposed Recommendations
7 Initiative 1
Addressing Issues
79
Proposed Recommendations
7 Initiative 2
2 Pathway for school students to join vocational courses and get job in digital industry
80
Proposed Recommendations
7 Initiative 3
Addressing Issues
81
Proposed Recommendations
7 Initiative 4
4 Enhancing the relevance, availability, and accessibility of training for the digital technology industry
Addressing Issues
Description:
This initiative is aimed at making available training courses (for 1 Specific Skills Shortage
the existing workforce) that are required by the industry and
ensuring that it is accessible to businesses. This initiative will be
achieved through a three pronged approach. 2 Technical and business skills
(1) Identification of training programs that are critical for the shortage
industry’s development 3 Increase Fresh Graduates
(2) Working with major training providers to ensure the Demand
availability of such training programs. This will be a
4 Under utilisation of HRDF
collaborative effort between the industry and training
Funds
providers facilitated by MDEC.
(3) Working with HRDF to ensure that the critical training 5 Adequacy of digital training
programs are approved and have access to HRDF existing programmes
funds 6 Industry and academia
(4) working with HRDF and relevant agencies for listing of skills collaboration
that is required by the industry that can be used to facilitate
all the kind of trainings 7 Participation in industrial training
programmes
Expected outcome
Availability of training programs that are required by the industry 8 Critical thinking skills and syllabus
and accessibility to existing HRDF funds and enhancement of requires changes
digital skills among employees of companies within the digital 9 Fresh Graduates Shortage
technology industry
82
83
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