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Malaysian Digital Talent Study 2017

Final Findings

Developed By:
Public Sector & Government Practice
Frost & Sullivan Asia Pacific

Date: 17 January 2018


Agenda

0 Overview of the study

1 Demand side assessment

2 Supply side assessment

3 Industry and academia

4 Gap Assessment

5 International comparative assessment

6 Key issues and takeaways

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

Benchmark Malaysia against other countries on digital talent development initiatives


3 covering skills and competencies

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)

Cloud/ Financial Technology


datacentre E-Commerce (FinTech) Cybersecurity Non-Tech

Higher Education Institutions

Public University Private University/ Community


TVET Polytechnic
(UA) College (IPTS) College

International Comparison

Australia Singapore Taiwan Sweden

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

Breakdown of respondents by Breakdown of Tech companies Breakdown of Non-Tech companies


category* Cloud/ Datacentre 1%
2%
2% Conglomerate
3% 3%
3%
5% BDA 4% Events
4%
10% Engineering
FinTech 7% Services
Non- Construction
8%
Tech 15%
Cybersecurity

% 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

Tech Categories Non-Tech Industry


* Note: Number of completed survey: 435
Note: Frost & Sullivan Analysis
7
Demand Side Assessment
1 Company Profile

53% of them are fully owned by Malaysians and 35% of the companies are mid sized

Ownership Size of Company

17% 16%
14%

12%

53%

15%
33%
35%
5%

100% Local More than 80% Local Less than RM 300,000

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

Note: Frost & Sullivan Analysis


8
Demand side assessment
1 Employment Trend: Number of Employees and Estimated Growth between 2017-2020

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

CAGR (2017-20): 15% 540,562


470,209
Number of employees

409,309
355,119
309,500

2016 2017 2018 2019 2020

Manpower Growth between 2017 and 2020 by Focus Areas

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%

Note: Frost & Sullivan Analysis Based on DOSM - ICTSA


9
Demand side assessment
1 Profile of Workforce - Staff involved in Business Delivery and Supporting Staff

63% of employees are involved in core business delivery activities and this proportion is higher in BDA

Business Delivery Supporting Staff

BDA 78% 23%

E-Commerce 69% 31%

CCT 67% 33%

Non-Tech 66% 34%

Cybersecurity 63% 37%

IoT 61% 39%

Software/ Hardware
60% 40%
Development

GBS 57% 43%

Cloud/ datacentre 55% 45%

FinTech 55% 45%

Overall 63% 37%

% of total employees

Note: Frost & Sullivan Analysis


10
Demand side assessment
1 Profile of Workforce - Types of Employment

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

Permanent Contract Outsourced Freelancers

Non-Tech 69% 16% 8% 7%

Cloud/ datacentre 64% 20% 17%

E-Commerce 84% 3% 7% 6%

FinTech 96% 3%1%


1%

IoT 83% 13% 3% 1%

BDA 91% 6% 1%3%

Cybersecurity 69% 30% 1%

CCT 71% 18% 5% 6%

Software/ Hardware
82% 15% 2%1%
Development

GBS 70% 29% 1%1%

Overall 75% 17% 4% 4%

% of Respondents

Note: Frost & Sullivan Analysis


11
Demand side assessment
1 Profile of Workforce - Reasons for engaging outsourced employees/ freelancers

Project requirement was the most common reason among respondents for engaging outsourced
employees or freelancers

74 51 43
% % %

Project Requirement Cheaper than to hiring Volatility in manpower


staff under payroll requirement

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%

Overall FinTech E-Commerce CCT IoT GBS Software/ Hardware


Development

Note: Frost & Sullivan Analysis


12
Demand side assessment
1 Profile of Workforce - Years of experience

More than 65% of the employees in the companies surveyed have 4 or more years of experience

Non-Tech 10% 24% 37% 29%

Cloud/ datacentre 6% 94%

E-Commerce 18% 21% 39% 22%

FinTech 15% 23% 27% 35%

IoT 18% 23% 23% 37%

BDA 16% 23% 25% 36%

Cybersecurity 12% 12% 36% 39%

CCT 9% 26% 34% 31%

Software/ Hardware Development 11% 21% 36% 32%

GBS 12% 25% 32% 30%

Overall 12% 23% 33% 32%

Fresh Graduate (Less than 1 year of experience) Junior (1 to 3 years' experience)

Intermediate (4 to 7 years' experience) Experienced (More than 7 years' experience)

Note: Frost & Sullivan Analysis


13
Demand side assessment
1 Profile of Workforce - Group facing acute shortage

66% of the companies surveyed have talent shortage particularly in intermediate (4 to 7 years’
experience) and experienced category (more than 7 years experience)

Fresh Graduate (Less


No Shortage
than 1 year of
34%
experience)
10%

Junior (1 to 3 years'
experience)
Experienced (More 12%
than 7 years'
experience)
21%

Intermediate (4 to 7
years' experience)
24%

Note: Frost & Sullivan Analysis


14
Demand side assessment
1 Profile of the workforce – Local Vs. Foreign Employees

On an average, 88% of the employees are Malaysians; tech companies have more foreign employees
when compared to non-tech

Non-Tech 92.4% 7.6%


19%
18%

% of Respondents
11%
10%
9%
Tech 87.0% 13.0%

6% 5%
4%

Overall 88.0% 12.0%

Malaysian (Local) Non-Malaysian (foreign)

Note: Frost & Sullivan Analysis


15
Demand side assessment
1 Profile of Workforce - Reasons for Hiring Foreign Manpower

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

Note: Frost & Sullivan Analysis


16
Demand side assessment
1 Profile of the workforce – Hiring Foreign Manpower

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
% % % %

Difficult or very difficult Easy


Crucial or very crucial Less crucial

Note: Frost & Sullivan Analysis


17
Demand side assessment
1 Profile of the workforce – Gender Breakdown
63% of the employees are male. Highest proportion of male is found in cybersecurity and IoT
Based on DOSM Labour Survey, Human health and social work activities has highest female participation
(80%) followed by Education (67%), financial services (54%)

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%

Note: Frost & Sullivan Analysis


DOSM Data Source: Labour Force Survey, 2016 18
Demand side assessment
1 Human resource metrics – Recruitment Criteria

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%

Industrial Certification 5% 14% 13%


Field of Study

Interpersonal Skills 14% 22% 15%


Interpersonal skills

Field of Study 30% 9% 17%

Technical Knowledge

Years of Experience 31% 21% 16%

Note: Frost & Sullivan Analysis


19
Demand side assessment
1 Human resource metrics – Attrition

19.1%
Attrition Rate %

15.0% 15% 14.2% 13.7% 13.3%


11.8%
10.0% 10.0%
8.6%
5.5%

GBS Software/ Overall IoT CCT Non-tech E-Commerce BDA Cloud/ FinTech Cybersecurity
Hardware datacentre
Development

Reasons for Attrition Measures undertaken to curb/ reduce attrition

48% 48% 38% 34% 22%


16% 16% 11% 11% 9%

Personal End of Job Work Team


Salary Work time Experienced Work from
reasons Contract satisfaction pressure Training building
flexibility hires home option
activities

Note: Frost & Sullivan Analysis


20
Demand side assessment
1 Human Resource Metrics - Average Monthly Salary

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)

Overall 2,223 3,269 5,098 8,088

Non-Tech 2,043 2,994 4,561 7,207

Cloud/ datacentre 2,000 3,000 4,000 6,625

E-Commerce 2,050 2,600 3,987 6,437

FinTech 2,214 3,214 5,429 7,964

IoT 2,392 3,635 5,689 7,912

BDA 2,750 3,500 6,000 12,187

Cybersecurity 2,233 4,650 7,083 9,966

CCT 2,012 2,860 4,183 7,201

Software/ Hardware
2,471 3,587 5,826 9,536
Development

GBS 2,441 3,515 5,662 9,077

Average Monthly Salary in RM Average Monthly Salary in RM Average Monthly Salary in RM Average Monthly Salary in RM

Note: Frost & Sullivan Analysis


21
Demand side assessment
1 Human resource metrics – Expected Salary Increment in 2017

Average expected increment in salary for 2017 is 5.1%; increment is expected to be highest in cybersecurity

Expected Increment in salary by focus area

Overall 5.1%

Cybersecurity 6.2%

FinTech 5.8%

GBS 5.7%

IoT 5.7%

BDA 5.6%

Software/ Hardware Development 5.6%

CCT 5.3%

Non-Tech 4.4%

E-Commerce 4.2%

Cloud/ datacentre 2.5%

Expected Increment in salary %

Note: Frost & Sullivan Analysis


22
Demand side assessment
1 Human Resource Challenges

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

Note: Frost & Sullivan Analysis


23
Demand side assessment
1 Training and Development – Breakdown by Type of Training

While tech companies focuses on technical skills related training, non-tech companies have a balance
between soft skills and technical skills training

Non-Tech 45% 43% 11%

Tech 22% 56% 22%

Overall 28% 47% 25%

Types of training breakdown


Soft skills Technical skills # Digital skills*

#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

Note: Frost & Sullivan Analysis


24
Demand side assessment
1 Training and Development - Utilisation of HRDF Training Budget

Only 39.5% of companies surveyed utilise HRDF funds.

30.5%

39.5%

30.1%

Utilising HRDF Funds Not Utilising HRDF Funds Non-contributors to HRDF funds

Note: Frost & Sullivan Analysis


25
Demand side assessment
1 Training and Development - Barriers to Digital Skills Training

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

Utilisers of HRDF Funds Non-Utilisers of HRDF Funds Non-Contributors to HRDF Funds

Note: Frost & Sullivan Analysis


26
Demand side assessment
1 Training and Development - Ways to Increase Digital Skills Training

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

Note: Frost & Sullivan Analysis


27
Demand side assessment
1 Present Skills of Workforce (2017) Vs. Future Required Skillsets (2020)

Software and application development/ programming languages, database management and networking are
the top three technical skills areas in 2017 and 2020
2020 2017

Software Development 50%


49%

Database 42%
41%

Networking and Network Security 32%


32%

Technical Skills for Productivity 30%


29%

Creative Multimedia 24%


24%

E-Commerce 23%
23%

OS and Server Technologies 23%


22%

Big Data & Analytics (BDA) 22%


21%

Cybersecurity 21%
21%

Emerging Technologies 20%


19%

Enterprise Resource Planning (ERP) 16%


16%

Embedded System 14%


13%

Hardware Design 12%


12%
% of Employees

Note: Frost & Sullivan Analysis


28
Demand side assessment
1 Present Skills of Workforce (2017) Vs. Future Required Skillsets (2020)

HR management is the top non-technical skills area in 2017 and 2020

2020 2017

18.6%
Human Resource Management
17.9%

18.2%
Finance
17.7%

9.0%
Foreign Language Skills
8.3%

% of Employees

Note: Frost & Sullivan Analysis


29
Demand side assessment
1 Profile of the workforce - Top Technical Skills of Workforce Currently
Software development
Java
JavaScript
.Net
Networking and Network Creative Multimedia
Security Adobe Creative Suite
IP, SIP Autodesk Suite
CISCO Apple Final Cut Studio
HP

Cybersecurity Embedded System


Risk assessment & management Embedded Java
Incident handling and response C/C++
Penetration testing/assessment Assembly Languages

Database Big Data & Analytics (BDA)


MS SQL Digital Industry Skills Data Management
My SQL Data Science
Oracle Python

OS and Server Technologies


Emerging Technologies Windows
Artificial Intelligence Linux
Automation and robotics e-Commerce related skills Android
Integrated Automation/ IoT Web development
e-commerce platform
Search engine optimization
Note: Frost & Sullivan Analysis
30
Demand side assessment
1 Profile of the workforce - Top Non-Technical Skills of Workforce Currently

Finance
• Management in accounts receivables
• Management in accounts payables
• Management in bank reconciliation & Tax filing & compliance

Human Resource Management


• Recruitment & selection
• Training & development
• Performance management

Foreign Language
• Mandarin
• Japanese
• Korean

Soft Skills & Personal Attributes


• Project management skill
• Business Communication skill for those in technical roles
• Problem solving skill

Note: Frost & Sullivan Analysis


31
Demand side assessment
1 Profile of the workforce – Technical Skills Shortages in Next Three Years

Networking and Network


Software development Creative Multimedia
Security
Java Adobe Creative Suite
IP, SIP
JavaScript Autodesk Suite
CISCO
.Net Apple Final Cut Studio
HP

OS and Server
Technologies Cybersecurity
Windows Risk assessment & management
Linux Incident handling and response
Android Penetration testing/assessment

Big Data & Analytics


Database Embedded System
(BDA)
MS SQL Embedded Java
Data Management
My SQL C/C++
Data Science
Oracle Assembly Languages
Python

e-Commerce related
Emerging Technologies skills
Artificial Intelligence Web development
Automation and robotics e-commerce platform
Integrated Automation/ IoT Search engine optimization

Note: Frost & Sullivan Analysis


32
Demand side assessment
1 Profile of the workforce – Non-Technical Skills Shortages in Next Three Years

Finance
• Knowledge in accounting software
• Tax filing & compliance
• Fin. Services Risk management

Human Resource Management


• Recruitment & selection
• Training & development
• Career development / talent Management

Foreign Language
• Japanese
• Korean
• Mandarin

Soft Skills & Personal Attributes


• Problem solving skill
• Project management skill
• Leadership skill

Note: Frost & Sullivan Analysis


33
Demand side assessment
1 Profile of the workforce – Broad Job Functions Classification (2017)

70% of the jobs are related to user group

Common jobs within each classification:

Create: Customer Support Engineer, Programmers/


Developers , Software Engineer, Technical Support
Engineer, Software QA Engineer

Use: Contact Centre Agent (Inbound), Technical Helpdesk


Create Analyst, Accounting Analyst, Business Analyst, Digital
23% Artist, IT Sales Engineer

Manage: Head of Operations – Shared Services, Team


Use Lead, Contact Centre Manager, IT Manager, Head of
70% Performance Management
Manage
7%
More than 80% are users

70% are users

51% are creators

Note: Frost & Sullivan Analysis


34
Demand side assessment
1 Profile of the workforce – Top Trending Overall Digital Industry Job Titles

Job Titles MASCO


2434 INFORMATION AND COMMUNICATIONS
1 Customer Support Engineer TECHNOLOGY (ICT) SALES PROFESSIONALS
(2434-05)
2512 SOFTWARE DEVELOPERS
2 Programmers/ Developers
(2512-01 to 2512-24)
2512 SOFTWARE DEVELOPERS
3 Software Engineer
(2512-01, 08, 10, 23)
2522 INFORMATION TECHNOLOGY SYSTEM
4 Technical Support Engineer
ADMINISTRATORS (2522-18)
2519 SOFTWARE AND APPLICATION DEVELOPERS
5 Software QA Engineer AND ANALYSTS NOT ELSEWHERE CLASSIFIED
(2519-11)

2523 COMPUTER NETWORK PROFESSIONALS


6 Network Engineer
(2523-05)

2519 SOFTWARE AND APPLICATION DEVELOPERS


7 Solution Architect AND ANALYSTS NOT ELSEWHERE CLASSIFIED
(2519-08)
2511 SYSTEMS ANALYSTS
8 Analyst, Database Engineer Database Specialist
(2511-01 to 2511-56)

2511 SYSTEMS ANALYSTS


9 .Net Consultant
(2511-21)

2511 SYSTEMS ANALYSTS


10 Java Consultant
(2511-26)

Note: Frost & Sullivan Analysis


35
Demand side assessment
1 Profile of the workforce – Top Trending Overall Digital Industry Job Titles

Job Titles MASCO

2512 SOFTWARE DEVELOPERS


11 System Architect
(2512-19)

2512 SOFTWARE DEVELOPERS


12 Software Architect
(2512-19)
2511 SYSTEMS ANALYSTS
13 Peoplesoft Consultant
(2511-44)
2511 SYSTEMS ANALYSTS
14 Oracle Consultant
(2511-43)
2434 INFORMATION AND COMMUNICATIONS
15 Product Development Engineer TECHNOLOGY (ICT) SALES PROFESSIONALS
(2434-09)
2519 SOFTWARE AND APPLICATION DEVELOPERS
16 Application Assurance Engineer AND ANALYSTS NOT ELSEWHERE CLASSIFIED
(2519-09)
2522 INFORMATION TECHNOLOGY SYSTEM
17 Project Engineer
ADMINISTRATORS (2522-16)
2521 DATABASE DESIGNERS AND
18 Data Engineer
ADMINISTRATORS (2521-01 to 2521-11)

2511 SYSTEMS ANALYSTS


19 ABAP Consultant
(2511-20)

20 Motherboard Designer 2511 SYSTEMS ANALYSTS

Note: Frost & Sullivan Analysis


36
Demand side assessment
1 Profile of the workforce – Top Digital Job Titles by Specific Focus Areas (2017)

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)

BDA IoT FinTech E-Commerce

• Programmers/ Developers • Software QA Engineer • Tech Helpdesk Analyst • Programmers/ Developers


• Data Analyst • Programmers/ Developers • Customer Support • Software Engineer
• Software QA Engineer • Analyst, Database Engineer • Software QA Engineer
• Team Lead Engineer Database • .Net Consultant • Test Development
Specialist • Programmers/ Developers Engineer

Cloud/ datacentre Non-Tech

• IT Security Specialist • Customer Support


• Network Engineer Engineer
• IT BD Manager • Technician
• Technical Support • Tech Helpdesk Analyst
Engineer • IT BD Manager

Note: Frost & Sullivan Analysis


37
Demand side assessment
1 Profile of the workforce – Job Titles that might be difficult to fill up in the future (By
Specific Areas)

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)

BDA IoT FinTech E-Commerce

• Programmers/ Developers • Software QA Engineer • Tech Helpdesk Analyst • Programmers/ Developers


• Data Analyst • Solution Architect • Customer Support • Database Architect
• Software QA Engineer • Programmers/ Developers Engineer • Software QA Engineer
• Team Lead • Data Scientist • Programmers/ Developers • Webmaster
• Team Lead

Cloud/ datacentre Non-Tech

• Network Engineer • IT Manager


• IT Security Specialist • Test Development
• Computer Operator Engineer
• IT Business Development • IT BD Manager
Manager • IT Business Analyst

Note: Frost & Sullivan Analysis


38
6. Supply side assessment
• Graduates Profiling
• TVET Graduates Profiling
• Courses and Subjects Trend
• Curriculum Review
Supply side assessment
2 Graduates Profiling

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

Computer application and


4,180
Digital development
Tech
Related
37% Computer Science 4,569
Non-
Digital
Tech
Related Computer design and graphics 4,616
63%

Creative technology,design,
7,562
Nationality of Graduate with Digital Technology music, fine arts
Relevant Qualifications

Non- Information Technology 8,485


3,069
Malaysian

Electric and electronic engineering


14,807
Malaysian 41,150 and telecommunication

- 4,000 8,000 12,000 16,000


- 20,000 40,000 60,000
Number of Graduates
Number of Graduates

Note: Frost & Sullivan Analysis based on MOHE Data


40
Supply side assessment
2 Graduates Profiling

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

Breakdown of Digital Technology Relevant Number of graduates by CGPA


Graduates by Level of Education
18,000 16,806
PHD 16,000
Masters
1% 13,917
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

Note: Frost & Sullivan Analysis based on MOHE Data


41
Supply side assessment
2 TVET - Graduates Profiling

TVET Graduate Statistics – Certified Centers (Certificates)

Number of IT Graduates from ‘Accredited


Number of IT Graduates
Centres’ by courses - 2016
from ‘Accredited Centres’ -
Overall Computer System Operations 24%
8,000
7,464 Computer system technician 12%
7,192
Computer Networking Services 9%
7,000
Computer Systems 9%
6,000
5,586 Multimedia Artist - Visual 7%

Video / Movie Production (Filming) 4%


5,000
Graduates

Computer Network Technician 4%


4,000 Computer System Technician
4%
Assistant
Multimedia Designer - Animation
3,000 3%
& Visual
Computer System Administration 3%
2,000
Multimedia Designer 3%

Creative Content Development 3%


1,000
Multimedia Artist - Animator 2%
0 Animation & Visual Multimedia
2014 2015 2016 2%
Designer
Percentage of total graduates

Note: Frost & Sullivan Analysis based on JPK data


42
Supply side assessment
2 TVET - Graduates Profiling

TVET Graduate Statistics - In house training (Sistem Latihan Dua Nasional - SLDN)

Number of IT Graduates from Number of IT Graduates from ‘SLDN’ by courses - 2016


‘SLDN’ - Overall
Computer System Operations 44%
300

Development of Application-Programmers 14%

250 242
Computer Network Operation 14%

200
3D- Production Support Operations 14%
Graduates

150 140 Audio Production 5%

Video / Movie Production (Filming) 4%


100

Computer System Technician Assistant 4%


50 37

Multimedia Artist - Animator 1%

0
Percentage of total graduates
2014 2015 2016

Note: Frost & Sullivan Analysis based on JPK data


43
Supply side assessment
2 Courses and Subjects Trends – Technical Subjects

Software development 45%

Networking and Network Security 39%

Others (contact centre tools, security


32%
management, business intelligence,etc.)

e-Commerce related skills 29%

Creative Multimedia 26%

Database 23%

Cybersecurity 23%

Hardware Design 19%

Enterprise Resource Planning (ERP) 16%

Big Data & Analytics (BDA) 16%

OS and Server Technologies 13%

Embedded System 10%

Emerging Technologies 6%

Percentage

Note: Frost & Sullivan Analysis


44
Supply side assessment
2 Courses and Subjects Trends – Non-Technical Subjects

Finance 19%

Human Resource Management 16%

Foreign Language Skills 13%

Percentage

Note: Frost & Sullivan Analysis


45
Supply side assessment
2 Courses and Subjects Trends – Top Technical Modules learnt by Students
Software development
Java
Javascript
C/C++ / C#
Networking and Network Security Creative Multimedia
CISCO Autodesk Suite
IP, SIP Adobe Creative Suite
Juniper Toon Boom Suite/Apple Final Cut
Studio

Cybersecurity Embedded System


Risk assessment & management C/C++
Penetration testing/assessment Embedded Java
Incident handling and response Assembly Languages

Database Big Data & Analytics (BDA)


MS SQL Technical Modules Learnt by SPSS
Oracle Students Data Management
My SQL Data Science

OS and Server Technologies


Emerging Technologies Linux
Artificial Intelligence Android
IoT e-Commerce related skills IBM
Automation and robotics Web-administration
Web-development
e-commerce platform

Note: Frost & Sullivan Analysis


46
Supply side assessment
2 Courses and Subjects Trends - Top Non-Technical Modules learnt by Students

Finance
• Management in accounts receivables
• Management in accounts payables
• Management in bank reconciliation

Human Resource Management


• Training & development
• Compensation & benefits
• Recruitment & selection

Foreign Language
• Japanese
• Korean
• Arabic

Note: Frost & Sullivan Analysis


47
Supply side assessment
2 Curriculum Review

The majority of institutions across disciplines review their course content on an annual basis. This trend is
particularly high for IT/ CS

Creative Multimedia/Technology 60% 40%

Business Studies, Finance or Economics 6% 46% 6% 43%

Engineering 9% 73% 18%

Information Technology/Computer Science 5% 86% 9%

Once in 6 months Once a year Once in 2 years More than 2 years

Note: Frost & Sullivan Analysis; data extracted


from the supply side survey 48
3. Industry and academia
• Preferred institutes of higher learning
• Current forms of collaborations
• Perception on the quality of graduates
• Improvements required in local HEIs
• Ways to strengthen industry and academia
collaborations
Industry and academia
3 Preferred HEIs

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

MMU(Cyberjaya Campus) 45%

Tunku Abdul Rahman University College 32%


Industry readiness 37%
Universiti Teknologi Malaysia 29%

Universiti Malaya 26%


University/ college has 35%
Asia Pacific University of Technology & Innovation 24% good reputation

Universiti Teknologi MARA 22%

Taylor's University 21%


Critical thinking skills of 34%
Sunway University 21% graduates

The One Academy 5%

UNIKL 5% Student/ graduates 22%


attitudes
USM 5%

Limkokwing University 4%
Curriculum better
UPM 3%
aligned to industry 22%
% of Respondents needs

Note: Frost & Sullivan Analysis; data extracted


from demand side survey 50
Industry and academia
3 Current Forms of Collaboration

The common form of industry collaboration with education institutions is hosting internship programs for
students

Students internship programmes 57%

We do not participate in any form of collaboration/engagement 25%

Dialogue with the academia on the current trends and skills 15%

Industrial training to lecturers 12%

Curriculum review with the academic institutions 11%

% of Respondents

Note: Frost & Sullivan Analysis; data extracted


from demand side survey 51
Industry and academia
3 Current Forms of Collaboration

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

Teaching faculty undergoing industrial training in the last 3-years

35%
Percentage

14%
8%
3%

Information technology/Computer Business studies, Finance or Engineering Creative multimedia/Technology


science Economics

Students undergoing industrial training annually

99% 96%
82%
Percentage

63%

Other engineering, mathematics Information technology/Computer Creative multimedia/Technology Business studies, Finance or
or science science Economics

Note: Frost & Sullivan Analysis; data extracted from supply


side survey 52
Industry and academia
3 Factors Hindering Collaboration and Engagement

Top factor hindering collaboration between industry and educational institutions is not having the
bandwidth/time to actively seek out such opportunities.

Industry View HEI View

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

Education institutions are not Industry is not receptive to such


15% 19%
receptive to such engagements engagements

Such engagements do not ensure Such engagements do not ensure


alignment of the education system 11% alignment of the education system 6%
and the skills required and the skills required

% of Respondents % of Respondents

Note: Frost & Sullivan Analysis


53
Industry and academia
3 View on Industrial Training to Students

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

Usefulness of industrial training to students Usefulness of industrial training from students


perspective
Industry View IHL View
5%

83%

Useful
Not Useful

95%
Percentage

45%

Relevance of Industrial Training to


field of study -students perspective
21% 22%

7%
13%

4%
Related
Not Related
Somewhat Effective Effective Very Effective

93%

Note: Frost & Sullivan Analysis


54
Industry and academia
3 Improvements Required in Local HEIs Recommended by Companies

(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

Note: Frost & Sullivan Analysis


55
Industry and academia
3 Ways to Strengthen Industry and Academia Collaborations

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

Industry View HEI View

Speaking engagements to share latest


Host internship programmes for
59% industry trends and developments to 58%
graduating students
academia

Dialogue on the current industry trends Real world case studies for
35% 48%
and skills assignments

Dialogue on the current industry trends


Real world case studies for assignments 30% 48%
and skills

Speaking engagements to share latest Developing course material in


industry trends and developments to 22% conjunction with the academic 45%
academia institutions

Host visiting lecturers to keep Host visiting lecturers to keep


academicians abreast latest industry 17% academicians abreast latest industry 45%
developments developments

Developing course material in


Host internship programmes for
conjunction with the academic 15% 42%
graduating students
institutions

Percentage

Note: Frost & Sullivan Analysis


56
Industry and academia
3 Important Initiatives in Secondary Education to Build Future Digital Talent

(1) Establishing forums to discuss skills development 2) Creating awareness of digital industry career options
at secondary schools

Establish a forum to discuss skills development for


66%
secondary education

Create awareness of the career options in digital industry 62%

Teaching of basic digital literacy skills 54%

Use of emerging technologies in daily teaching 45%

Include programming and coding as a syllabus 38%

% of Companies

Note: Frost & Sullivan Analysis


57
4. Gap assessment
• Gaps by Field of Study
• Gaps by Skills
3.3 Gap Assessment
4 Demand/ Supply Gap Assessment

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

Gaps by Field of Study Gaps by Skills


1 What is the shortfall of manpower
required to meet the demand in each
2 Which skill areas are expected to face
a manpower crunch in the next 3
field of study? years?

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

Overall 2017 2020

Scenario 1
Surplus Supply Surplus Supply
Entire supply pool 66,000
60,700
100,700 126,900

40,000 60,900

Demand Supply Demand Supply

Scenario 2
Employable Supply Surplus Supply
Surplus Supply 8,800
Pool 15,300

55,300 60,900 69,700


40,000

Demand Supply Demand Supply

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

Demand Supply Demand Supply


Note: Frost & Sullivan Analysis
60
3.3 Gap Assessment
4 1. Gap in Demand and Supply by Field of Study

Except for scenario 1 and in scenario 2-2017 , a shortage of IT graduates is estimated for 2017 and 2020

IT 2017 2020

Scenario 1 Surplus Supply


Surplus Supply
Entire supply pool 16,400
12,600
27,400 39,000

14,800 22,600

Demand Supply Demand Supply

Scenario 2 Surplus Supply Shortage Supply


Employable Supply 300 -1,200
Pool

14,800 15,100 22,600 21,400

Demand Supply Demand Supply

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

Demand Supply Demand Supply


Note: Frost & Sullivan Analysis
61
3.3 Gap Assessment
4 1. Gap in Demand and Supply by Field of Study

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

Scenario 2 Surplus Supply


Employable Supply Shortage in Supply
400
-2,900
Pool

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

Note: Frost & Sullivan Analysis


62
3.3 Gap Assessment
4 1. Gap in Demand and Supply by Field of Study

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

Demand Supply Demand Supply

Scenario 2
Employable Supply
Pool Surplus Supply Surplus Supply
15,500 17,800
24,300 31,200
8,800 13,400

Demand Supply Demand Supply

Scenario 3
Employable Supply
Pool willing to join Surplus Supply Surplus Supply
digital industry 4,400 3,500

8,800 13,200 13,400 16,900

Demand Supply Demand Supply


Note: Frost & Sullivan Analysis
63
3.3 Gap Assessment
4 1. Gap in Demand and Supply by Field of Study

Except for scenario 1, a shortage of creative/ arts graduates is estimated for 2017 and 2020

Creative/ Arts 2017 2020

Surplus Supply
Scenario 1 5,400
Entire supply pool
13,800 Surplus Supply 14,400
12,800 1,600
8,400

Demand Supply Demand Supply

Scenario 2
Employable Supply Shortage in Supply Shortage in Supply
-800 -4,900
Pool
12,800
8,400 7,600 7,900

Demand Supply Demand Supply

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

Demand Supply Demand Supply


Note: Frost & Sullivan Analysis
64
3.3 Gap Assessment
4 2. Gap in Demand and Supply in Technical Skills - 2017
In all the 3 scenarios, shortages were estimated in skills related to emerging technologies and hardware
design
13,100
E-Commerce 28,400
15,600
(8,500)
(5,100) 8,300
Emerging Technologies (2,800)
(1,500)
3,000
Creative Multimedia 17,300
9,500
5,200
Legend:
1,900 Scenario 1
Embedded System 8,400
4,600 Entire supply pool
2,500
(4,100) 4,300
Hardware Design (2,300) Scenario 2
(1,300) Employable Supply Pool
6,600
Enterprise Resource Planning (ERP) 9,800
(5,400) Scenario 3
(2,900)
2,200 Employable Supply Pool
Big Data & Analytics (BDA) 11,000 and Students willingness
6,100
3,300 to join digital industry
6,600
OS and Server Technologies 9,300
(5,100)
(2,800)
3,900
Database 18,900
10,400
5,600
5,500
Cybersecurity 10,300
5,700
(3,100)
6,800
Networking and Network Security 23,300
12,800
7,000
13,500
Software development/ Programming 28,500
15,700
(8,500)
Number of Fresh Graduates Demanded and Supplied
Demand Scenario 1 Scenario 2 Scenario 3 *Red indicates
shortage
Note: Frost & Sullivan Analysis
65
3.3 Gap Assessment
4 2. Gap in Demand and Supply in Non-Technical Skills - 2017

Shortage was estimated only in scenario 2 and 3 for skills HRM

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

Number of Fresh Graduates Demanded and Supplied

Demand Scenario 1 Scenario 2 Scenario 3

*Red indicates shortage

Note: Frost & Sullivan Analysis


66
3.3 Gap Assessment
4 2. Gap in Demand and Supply in Technical Skills in 2020
In all the 3 scenario, shortages are estimated in skills related to emerging technologies, hardware design,
ERP, OS and server technologies
25,900
E-Commerce 41,200
31,900
(22,700)
24,400
Emerging Technologies (6,200)(4,800)
(3,400)
6,100
Creative Multimedia 21,700 Legend:
16,800
11,900 Scenario 1
3,600 Entire supply pool
Embedded System 9,800
7,500
5,400
Scenario 2
12,000 Employable Supply Pool
Hardware Design (4,700)
(3,600)
(2,600)
12,800 Scenario 3
Enterprise Resource Planning (ERP) (11,500)
(8,900) Employable Supply Pool
(6,300) and Students willingness
4,100 to join digital industry
Big Data & Analytics (BDA) 13,000
10,000
7,100
12,900
OS and Server Technologies (11,000)
(8,500)
(6,000)
7,600
Database 24,800
19,200
13,700
10,500
Cybersecurity 12,000
(9,300)
(6,600)
13,400
Networking and Network Security 30,000
23,200
16,500
27,300
Software development/ Programming 38,100
29,400
(20,900)
Number of Fresh Graduates Demanded and Supplied
Demand Scenario 1 Scenario 2 Scenario 3 *Red indicates shortage

67
3.3 Gap Assessment
4 2. Gap in Demand and Supply in non-technical skills in 2020

Shortages are estimated in skills relating to HRM and foreign language

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

Number of Fresh Graduates Demanded and Supplied

Demand Scenario 1 Scenario 2 Scenario 3

*Red indicates shortage

Note: Frost & Sullivan Analysis


68
3.3 Gap Assessment
4 2. Gap in Demand and Supply - Comparison of shortages between 2017 and 2020.

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

Shortage in 2017 Shortage in 2020

Hardware Design All 3 scenario All 3 scenario

Emerging Technologies All 3 scenario All 3 scenario


Legend:
Scenario 1
OS and Server Technologies Scenario 2 and 3 All 3 scenario Entire supply pool

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

E-Commerce Scenario 3 Scenario 3

Foreign languages Scenario 3 Scenario 3

Note: Frost & Sullivan Analysis


69
5. International Comparative assessment
5 Competitive Assessment

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

High level of Medium level of Low level of


Legend government government government
intervention intervention intervention

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

Supply: ICT Education for all levels


Demand: Software based economy ,Increasing diversity
Linkages: At government policy level

Sweden

Supply: Technical education, Increase in Entrepreneurship


Demand: ICT jobs in Financial and Professional services
Linkages: At government policy, education and industry levels

Singapore
Supply: Vocational, Technical education and competencies
Demand: Hardware based R&D in ICT
Linkages: At government policy, education and industry levels

Manufacturing- Taiwan R.O.C


based
Economy
Source: Frost & Sullivan.
72
6. Key issues and Takeaways
6 Key Issues/Takeaways

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

Proposed Initiatives focuses on:


• Bridging talent gap between demand and supply of fresh graduates
• Improving industry and academia collaboration
• Developing Digital Talent

Developing a pool of academicians with a deep understanding of industry and business


1 experience

2 Pathway for school students to join vocational courses and get job in digital industry

3 Enhanced collaboration between industry players to grow digital talents

Enhancing the relevance, availability, and accessibility of training for the digital technology
4 industry

78
Proposed Recommendations
7 Initiative 1

Developing a pool of academicians with a deep understanding of industry and business


1 experience

Addressing Issues

Description of the proposed initiative: 1 Specific Skills Shortage:


This initiative aims to enhance the diversity of people
running academic programs with the introduction of
2 Technical and business skills
people with industry experience into the mix of shortage
academicians. This is achieved through a two pronged
approach: 3 Increase Fresh Graduates
Demand
(1) Changing the KPIs of academicians from one that is
completely based on academic targets (Teaching and 4 Under utilisation of HRDF Funds
publishing research papers) to one that requires teaching
professionals to spend time engaging with the industry 5 Adequacy of digital training
either through dialogue, collaborative projects, or programmes
temporary job placements in the industry
6 Industry and academia
(2) The second strategy would be recruit industry collaboration
professionals to join the teaching profession
Expected outcome: 7 Participation in industrial
This initiative will facilitate in developing a pool of training programmes
academics with understanding of industry and 8 Critical thinking skills and
business experience. Eventually graduates will have syllabus requires changes
skills that are better aligned to the industry’s needs 9 Fresh Graduates Shortage

79
Proposed Recommendations
7 Initiative 2

2 Pathway for school students to join vocational courses and get job in digital industry

Description: Addressing Issues


Coming up a new models of school which is different from
traditional school which focuses on innovative and critical thinking
Foster greater participation of students especially those who are 1 Specific Skills Shortage
socio-economically disadvantaged, in the digital industry by
granting them alternatives routes for schooling and attending 2 Technical and business skills
college and finally getting entry level jobs shortage
This initiative requires partnership between a public school,
higher education institution and employer company or companies. 3 Increase Fresh Graduates
This initiative is for a period of 6 years starting from Form 4 to Demand
college wherein the curriculum focuses on STEM and also input 4 Under utilisation of HRDF Funds
from employer partner. Upon completion of Form 6, the students
will automatically transition to the partnering college for their 5 Adequacy of digital training
degree. During their six years, students should be provide programmes
internship and worksite visits by employer partner(s). Thereby
6 Industry and academia
preparing the students for workplace.
collaboration
Scholarships for students to pursue tertiary courses related to
digital industry after completing their secondary school 7 Participation in industrial
training programmes
Expected Outcome: This partnership will allow students to
gather required technical skills as well as gain working experience 8 Critical thinking skills and
and allowing them to step easily into digital related jobs in any syllabus requires changes
industry. 9 Fresh Graduates Shortage
- A similar initiative was done in USA and Australia

80
Proposed Recommendations
7 Initiative 3

3 Enhanced collaboration between industry players to grow digital talents

Addressing Issues

Description: 1 Specific Skills Shortage


This initiative seeks to foster collaboration between industry
players to facilitate in developing skills required for Malaysian
digital economy. 2 Technical and business skills
The collaboration seeks to develop skills for new digital jobs and shortage
removing barriers that impede growth and most importantly 3 Increase Fresh Graduates
reduce the digital talent gap. Demand
To get large industry players and companies which receive 4 Under utilisation of HRDF Funds
assistance from Government to play an active role in this
initiative, one of their KPI’S could to be part of the industry
working group for this initiative so that talent development is 5 Adequacy of digital training
meaningful and effective programmes
6 Industry and academia
Expected Outcome: collaboration
This collaboration assists to inspire new and diverse talent into
digital careers, raise the quality of digital skills training and 7 Participation in industrial
education and facilitate everyone to gain basic digital skills training programmes
needed for life. 8 Critical thinking skills and syllabus
requires changes

9 Fresh Graduates Shortage

- A similar initiative was done in UK

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
83

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