ICT JOB MARKET OUTLOOK IN MALAYSIA

JUNE 2013

P U B LI S HE D BY

I N CO L L A B O R AT I O N W I T H

ICT Job Market Outlook in Malaysia June 2013

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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 findings 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 findings. 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 findings presented in this publication is solely at the user’s 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 findings published in this series. However, professional advice can be sought from the producers of this publication.

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Contents
Message by PIKOM Chairman Message by PIKOM President/CEO Preamble Malaysian Economic and ICT Industry Outlook ICT Job Market Salary Trends Regional Benchmarking Employment Outlook and Perceptions Rethinking HR in a Changing World: A Practitioner’s Discourse The Right Talent Development Strategy for Top Talents? Closing The Demand-Supply Gap in ICT Talents iv v 6 9 14 25 28 33 39 44 iii

ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013

countries such as Hong Kong. top paying ICT jobs. as well as mainstream policy formulators. Singapore and China in Asia and Australia. this outlook will continue to serve its members. job sentiment index. the typical information published includes average monthly salaries of ICT professionals. On the other hand.Message by PIKOM Chairman WOON TAI HAI In its endeavour to champion the Information Communications Technology (ICT) industry.com and KPMG. PIKOM believes that with its expanded scope and coverage. 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. 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. PIKOM is optimistic that these industry partners will continue to offer their enduring support in the years ahead. I would like to see more effort taken in addressing the human capital development issues and challenges. Regional data on selected Asian countries and English speaking nations that Malaysia has close diplomatic and trade ties. the industry needs to put in place appropriate strategies and measures that can help to enhance staff loyalty. From the employees’ perspective. This time. this series is accompanied by median data for various types of job functions. gender and years of working experience. competitive remuneration is one of the options for staff retention. it will be harder for the industry and the nation as a whole to become globally competitive and productive. industry players and investors. As in the past. besides atlas based criterion the publication also included Purchasing Power Parity (PPP) adjusted salary information that essentially takes into account foreign exchange fluctuations and inflation rates as well as living standards and costs.com and KPMG for their invaluable contributions. employers are equally facing a quandary in getting industry ready ICT graduates. job category. The salary information is broken down by industry. This outlook is made possible with the continuing support of Jobstreet. however. As reflected once again in this outlook. As the PIKOM Research Committee Chairman. If timely efforts are not taken in addressing this dilemma. wherever possible. the issues and challenges of talent migration to better paying destinations are still affecting the industry. iv ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . employment size and geographical location. As an additional feature. PIKOM has once again successfully produced the annual “ICT Job Market Outlook in Malaysia” report. Obviously. due references have also been made to PayScale web-based information. In order to provide more comprehensive information. To overcome this problem. is provided once again. hot ICT jobs in demand and the hiring outlook. PIKOM would like to take this opportunity to record its sincere thanks and appreciation to Jobstreet.

leading the digital trend and increasing competitiveness and globalisation of the Malaysian ICT industry. The others include enhancing value to members. this series continues to provide information on average monthly salaries earned by information and communications technology (ICT) professionals in Malaysia in 2012. conduct cross-disciplinary training. multimedia content provision. I would like to take this opportunity to record my sincere appreciation to Jobstreet. Specifically. 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.Message by PIKOM President/CEO SHAIFUBAHRIM SALEH PIKOM is once again pleased to publish the annual “ICT Job Market Outlook in Malaysia” report. big data analytics and networking. PIKOM has embarked on programmes to publicise ICT courses through social media networks. v Once again. re-skill the current talent pool. promote industrial guided projects for students and to attract Malaysian talents from overseas as well as the Board of Computing Professionals Malaysia (BCPM). ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . web and portal development. data warehousing. accelerating growth demand. PIKOM has reviewed and realigned its five-year strategy plan during its 2013 planning session. In meeting the changing demands of the industry and human capital requirements.com and KPMG for their effort in making this publication into another milestone for PIKOM. In human capital development. As in the past. software development as a service (SaaS). human capital development is positioned as one of the six key strategies. cloud computing. platform as a service (PaaS).

Globally. China. PIKOM was mainly responsible for data collation and coordination over and above its provision of ICT industry-specific information and outlook. tax and advisory service. KPMG took on the task to present Malaysia’s economic outlook. KPMG operates in 144 countries with a staff size of 137.com provided the latest salary report of ICT professionals by industry. Korea and India. com (www.700 staff located across 10 offices. India. The group currently services over 50. Singapore. The English speaking nations covered include United States of America.com is the largest online recruitment service provider for all categories of jobseekers. Indonesia. Indonesia.000 people. United Kingdom. has once again taken the lead to compile the “ICT Job Market Outlook in Malaysia. Job Street operates the JobStreet. JobStreet. Philippines. the National ICT Association of Malaysia. due references were made to web published salary information by PayScale Salary Report. job market outlook in the respective ICT segments. Malaysia. Japan and Thailand. KPMG is an international network specialising in audit.000 corporate customers and over 6 million jobseekers. 6 from fresh jobseekers after graduation to senior level positions. Jobstreet. 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. and survey-based economic perception of job seekers and industry players. For regional comparisons. Thailand.com and KPMG. KPMG first established a presence in Malaysia in 1928 and the Malaysian firm now has 65 partners and over 1. Canada. On its part.Preamble PIKOM. Job Street is listed on the Main Board of Bursa Malaysia Securities (JOBST). Philippines. Meanwhile. 2013” in collaboration with JobStreet.com) websites presently covering the employment markets in Malaysia.JobStreet. PIKOM is the national representative of the information and communications technology (ICT) industry with more than 1. Australia and New Zealand. Its members contribute about 80% of the total ICT revenue in the country. The Asian countries considered in the report include Singapore.500 members as at end of 2012. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .

Regional Benchmarking with Selected Asian Economies vi.The main objective of this report is to provide data and information on the following:i. Top 10 Specialisations Sought v. both Business and Technical • Private Education • Electrical & 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 ICT Salaries by Industry • Agriculture / Plantations / Aquaculture • Automotive / Heavy Industry / Machinery • Banking Institutions • Chemical Industries • Construction / Building.com Employee Confidence Index (JECI) • Anticipated Hiring Activities • Top 10 Specialisations Sought • Position Level Sought 7 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . Average Monthly Salaries of ICT Professionals by Key ICT Industry Segments • ICT Hardware • ICT Software • Call Centre iv. Perception by Job Seekers and Employers • Jobstreet. including Civil Engineering • Consulting. 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.

those in ICT Project Management tend to earn significantly higher salary than those in the technical or engineering fields. India. New Zealand and Australia that typically attract Malaysians for employment. in 2012 a typical ICT Project Manager earned an average monthly salary of RM9. Among the various types of job functions investigated.240 the previous year.75 times higher than of those who work in smaller cities like Ipoh or Kuching. in particular pertaining to economic performance and ICT job market outlook as gauged by Jobstreet. 34% higher salary than their female counterparts.71 times in 2012. Besides publishing average annual salaries earned by ICT professionals in seven Asian countries. the industry will continue to face problems in retaining its younger staff from job hopping in search of higher remuneration. the Philippines and Indonesia. ICT professionals equipped with Java.7% from RM6. ICT professionals in Australia netted 3. It is also observed that the salary gap between the Senior Managers and the fresh graduates has widened from 5. The report also carries information on the perception of job seekers and potential employers. United Kingdom.com on a regular basis. 8 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . Instead of just publishing the average annual salaries. The demand for both the technical and business applications jobs are attributed to prolific growth experienced in cloud computing and mobile applications.784. Specifically. Under business applications. Hot ICT jobs varied across technical. Such trends are considered unhealthy for the ICT industry where the employment market has been tight over a number of years and.It is pertinent to note that the average monthly salary of ICT professionals for 2012 was RM6. business applications and soft skills categories. The study also interestingly revealed that male ICT professionals earn. namely Hong Kong. Such disparity is likely to continue in accentuating youth migration to cities that are already overcrowded.76 times (without PPP adjustments) higher or 1. Singapore.88 times more than those in the small and micro categories which have less than 10 employees. which is almost twice of that earned by a Junior Software Engineer or 50% more than that of a Senior Software Engineer. once again the reporting is done in terms of scaling numbers. Thailand. the notable fast growing jobs are IT Security Analyst and Big Data Analytics for fending off cyber threats and culling out customer insights from petabytes systems respectively. For making meaningful comparisons. on average. Australia and USA topped the list among the English speaking destinations.90 times (with PPP adjusted) higher or 2. dotNet. The data also showed that big companies tend to pay as high as 1.9% and 9. C++. Like in the previous years. which essentially highlighted how many times higher or lower the salaries are compared with other regional markets. Among Asian countries. Canada. Similarly.44 times in 2011 to 5. especially those in the junior categories. the oil and gas sector continued to be one of the attractive sectors for ICT professionals. China. as such. SharePoint and Web Application Developers are highly sought after.90 times (with PPP adjusted) higher than the data reported for Malaysians in this report. C#.700. the study discovered that the typical salaries of ICT professionals in major cities like Kuala Lumpur and Cyberjaya is 1. Generally the job seekers and providers indicated a positive outlook for Malaysia in 2013. registering an increase of 8. Hong Kong once again topped the salary scale. 9. For instance. Middle Manager and Senior Executive categories experienced significant pay rise of 14. The record also showed that the ICT professionals in the Senior Manager.53 times (without PPP adjustments) higher than their counterparts in Malaysia in 2012. In terms of geographical locations. the regional salary data took into consideration the Purchasing Power Parity (PPP) factor. In the technical domain. where the salary was 1.1%. the report also provides data for five English speaking nations namely United States.6% respectively in 2012.

Malaysian Economic and ICT Industry Outlook 9 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .

a.8 5.8 6. low unemployment rate.9 8. sustained private and public consumption and expenditure.3 8. which is significantly lower than MIER. strong domestic demand arising from economic transformation programmes and on-going mega projects.a.8% and 5.0% respectively.5% p.5 5.2% in 2012.a.5 5. Malaysia’s economic growth predictions for 2013 vary widely among private financial institutions.2% p. The Government of Malaysia has projected an economic growth of between 4. Although Malaysia’s growth rate was lower than expected at 4.7 -7. iv. However. iii.8 5. increased export earnings owing to strengthening of Ringgit Malaysia against US dollars.The Malaysian economy grew at an average rate of 5.5% and 5.2 7. 4.5% and 5. especially in the Information Communications Technology Services (ICTS). The economic growth predictions made by Royal Bank of Scotland and the Overseas Chinese Banking Corporations (OCBC) were 5. international agencies and research institutions. Asian Development Bank (ADB) and World Bank (WB) were 4. the economy is expected to rebound with economic improvement in the US and positive growth in China.1 5. vii. vi. low inflation rate.5 4.0 9.5% in 2013 (Figure 1). 2013.1% in Q1.3 6. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 20 13 . PIKOM is optimistic and concurs with MIER’s prediction of 5.4 5.8 0. Pre Global Financial Crisis 2009: 5. the Malaysian Institute of Economic Research (MIER) has predicted continuity of resilience in the Malaysian economy in 2013 with a growth rate of 5.6% p. stable overnight lending rates stimulating business investments. The resilience in the Malaysian economy is poised to continue in 2013 and can be attributed to the following factors:i. in 2013 by Economic Report 10 -10 Figure 1: Malaysia’s GDP Growth (%): 1990-2013 However. citing the effect on the export market by the continuing global economic slowdown as the key reason for the lower forecast.4 Pre Asian Financial Crisis 1997: 9.7 6.6%. 12 10 8 6 4 2 0 9. The predictions made by International Monetary Fund (IMF). and viii.6%. India and ASEAN countries.2% respectively.8 10.5 9.7%. Projected to grow by 5.9 6. ii. which were much higher compared to other private institutions. higher economic growth forecasts for China. where at least 60% of Malaysia’s total trade is concentrated at and is highly likely to bring a positive impact on the Malaysian economy in 2013. v.1 5.2 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 20 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 -2 -4 -6 -8 -1.0 9. steady and positive growth in the various economic sectors. Specifically.9 9.

the ICT intensive big projects include My Rapid Transit (MRT) linking Kajang and Sg. R&D capabilities.4% of GDP in 2011 to 3% in 2015 may dampen public expenditure and investments.3 billion in 2001 to RM55. almost doubling during the period of 2001-2012. 13th General Election: Typically. The ICTS segment grew at a Compound Annual Growth Rate (CAGR) of 13. quality and competitive edge best practices. innovation culture. the ICTS segment in Malaysia is projected to register significant growth in 2013.4% to 6. 11 ICT Industry Outlook As it was in the past. video and television programme. In tandem. River of Life. vi. External environment: Risk aversion strategy among potential investors due to globalisation and market liberalization phenomena.1 billion in 2012 (Figure 2). Quality of Malaysian workforce: Over dependence on low skilled foreign workers may not be healthy for the Malaysian economy in the long term unless a concerted effort is made to increase the quality of the local workforce. To name a few. The Government should also review policies that may have run their course as this will garner wider public support and boost investor confidence. during the post-election period the Government takes cognizance and reminds the public of its pledges and promises. Tun Razak Exchange. vii. productivity. Macro indicators: Fluctuation in oil and commodity prices in global markets could result in higher prices for consumers through increasing inflation and base lending rates. Capital flight: Massive capital outflow arising from volatile foreign exchange rates is also bound to hurt export and import earnings. it is imperative and crucial to ensure a familiarity of policies and regulations now that GE13 is done and dusted. ingrained with technological capabilities. Macro policy environment: Any slacking in the delivery of economic transformation initiatives. Petronas Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang. the Malaysian economy is not totally free from economic encumbrances and faces a number of investment related risk factors such as:i. iii. Buluh. and therefore tends to implement developmental projects. The introduction of MSIC2008 saw the inclusion of publishing services. unless the Government achieves the target through revenue-increasing measures or operational cost reduction strategies. The new additional segments constitute about 11% of the total ICTS sector contribution in terms of value added services. The ICTS segment is poised to reach the mark of RM61. ii.3% by increasing its value added services from RM12. motion picture. the share of ICTS in the national Gross Domestic Product (GDP) increased from 3. mega projects and geographically defined corridor projects. Traditionally. Bandar Malaysia at Sungei Besi as well as the various economic corridors ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . From a business perspective. PIKOM is confident of achieving double digit growth rate in the years ahead through on-going capital intensive economic transformation programmes and mega-projects that have been stimulating domestic demand for ICT Services. programming and broadcasting and information services as additional items.7 billion in 2013 by registering another annual growth rate of 12%. v. iv. Reducing fiscal deficit: Poor management on the part of the Government in its ambitious task in reducing the fiscal deficit from 5.Nonetheless.3%. telecommunications and computer services constitute the ICTS segments as per Malaysian Standard Industry Classification 2000 (MSIC2000).

women and digital entrepreneurs. which are deployed in a variety of industries to serve customers better by culling out insights and predictions that the data can generate. ICT is poised to increases the process efficiency and product and services delivery effectiveness. From a private sector lens. Mobile device usage. viewing from a public policy perspective. Cloud computing. the DMP is expected to increase business activities while at the same time addressing key national concerns such as creating opportunities for the B40 income group (the lowest 40% in household income).5 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Figure 2: ICTS Value Added Services : 2001-2013 Source: Department of Statistics and PIKOM Estimates The ICT sector. applications and records wherever they happen to be. Having gone through two decades of new age experiences and exposures. The process can help to improve the profitability of the company by assessing credit worthiness.– Iskandar Malaysia.1 12. ii. 80 (RM Billion) Value in Ringgit Malaysia 70 60 50 40 30 20 10 61. iii.1 37 22 24. they can do their work from the train or bus on their daily commute. As a socio-economic enabler and key driver of businesses. The four key trends are: i. 12 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . With such a work culture.1 43. in its contemporary form. the country is migrating into its next phase of inflection point by creating a digital innovation economy through the Digital Malaysia Programme (DMP). In 2013. In the early stages of information age. people need not be in the office to complete their tasks. besides teleworking from home. which is one of the fastest growing technological advances.7 55. plays and learns. impacts on economic growth. ICT’s ubiquity and pervasive features and characteristics are continually impacting the way one works. organise and store large amounts of data without investing heavily on hardware and software tools. company employees always remain connected with the help of smartphones and tablets.4 27. helps companies to structure. particularly smart phones and tablets. make customers and clients more mobile and also provides access to companies’ websites. Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCORE). which in turn.6 31 48.7 14.3 13. East Coast Economic Region (ECER). More importantly. Northern Corridor Economic Region (NCER). Big data analytics. has evolved to be more than a mere collection of technological tools.8 15. industry pundits are projecting at least four key trends changing the way in which firms work. risk analysis and/or data supported decision making processes.2 18. youth. such changes were succinctly harnessed through the MSC Malaysia initiative that saw its introduction in the mid-nineties.

Understandably. Despite the long established presence of some multi-nationals. can be a powerful tool for customer engagement. Pursuant of these certifications is critical for globalising Malaysian ICT products and services. it will be difficult for public universities to increase their capacity to produce more ICT graduates. the nation’s ICT sector continues to face several persistent challenges: i. initiatives by TalentCorp. The initiatives are carried out via three strategic thrusts: optimise Malaysian talent. though seen as a disruptive and unproductive activity when staff unnecessarily waste time. helped to redress some of the talent gaps in the ICT sector. as the figure has been lingering around 25. Social media. ICT enrolment in private universities also has not improved very much and averages around 50. as well as branding products and services. which. The numbers were further disheartening upon realising that less than 2% of PIKOM members in the ICTS segment have employees certified with Six Sigma or Lean Six Sigma accreditations. and a declining interest among young people in ICT jobs that demand long working hours continue to plague the growth of the ICT industry. information sharing. rampant job-hopping for better terms of employment. generally lacks the interest in attaining global standards in process and quality improvement activities. 13 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . and iv. Green ICT Certifications have yet to gain a foothold in the Malaysian ICTS landscape. development and commercialisation culture: Public and private universities and industries are still behind in creating globally-recognised ICT products and services due to the lack of a strong R&D and patenting culture. the country still has weak links in the global R&D and innovation network. However. these endeavours are yet to be realised.000 per year. attract and facilitate global talent and build networks of top talent. This new age media. with budget constraints.000 per year over the past three years. including its workforce. ii. and soliciting feedback. which was established in January 2011. The ICT enrolment in the public universities has not improved much. Quality of ICT Graduates: Quality. This is due to difficulties in getting the right candidates to embark on high value adding ICT activities that the Government has been passionate about over the past two decades. networking. Being new. an offspring of the Internet age. especially in comparison to regional countries. Quality and Competency Standards of Human Capital in ICT Firms: The ICT industry. is half than what it was a decade ago. Low remuneration. Despite growing dynamism. ICT enrolment in both public and private institutions has stagnated. PIKOM’s internal investigation revealed that only 6% of Malaysian Information Communications Technology Service (ICTS) providers have attained Capability Maturity Model Integration (CMMI) certifications and less than 1. Supply of ICT Graduates: As it was in the recent past.5% are equipped with the People Capability Maturity Model (PCMM) certification.iv. Research. notably. iii. relationship building. competency and employability of ICT graduates in meeting the industry’s demands continue to remain a critical issue. or to solicit ICT contracts from developed economies like USA.

ICT Job Market Salary Trends 14 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .

276 2010 5.184 8.784 6.626 2011 6.com and PIKOM.795 12. which is considered as a significant rise from RM2.1%.387 per month.276 4.6 Year Fresh Graduates: (Entry Level) Middle Management: (Manager) Senior Management: (Senior Manager) 10.238 2.25 2.521 9.6%).9% 8.36 3.699 4.2% in 2011 and 1. This increase was well above the average inflation rate of 3.7% from RM6. resulting in a comfortable living for ICT professionals in Malaysia.626 6.514 5.9 Overall 2010 2011 2012 Percentage Change (%) 2.936 3. to a figure no less than RM7. PIKOM anticipates an 8.7% 4.7% where their average monthly salary increased from RM3.71 Table 1 : Average Salary of ICT Professionals by Job Category: 2010-2012 Source: Jobstret. followed by senior management (9.240 5. Given the optimistic outlook of the economy and other positive factors within the ICT industry. The fresh graduates are.626 5. except Junior Executive.7 7.374 9.946 14.446 2008 4. ICT professionals in the middle management level received the highest average rate of pay rise of 14.50 3.206 in 2012.166 13.9% rise in the average salary of ICT professionals in 2013.387 Figure 3: Average Salary of ICT Professionals: 2006-2013 Source: Jobstret. Junior executives received only a raise of 1.Job Category Overall The average monthly salary of an ICT professional in Malaysia in 2012 was RM6.343 4.240 2012 6.206 1. 8000 Average Monthly Salary (Ringgit Malaysia) 7500 7000 6500 6000 5500 5000 4500 4000 Average Monthly Salary 7.41 1.151 in 2011 to RM3.240 6. This represents an increase of 8. on average.7 Benchmarking Against Average Monthly Salary of Fresh Graduates 2011 2012 1.151 3. netting a monthly salary of RM2.446 2007 4.82 5.7 Senior Executive: (> 5 Years Working Experience) 4.039 5.387 6.00 1.6% in 2012.005 7.1 5.00 1. 15 By Job Category Junior Executive: (1-4 Years Working Experience) 2. 2013 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .com and PIKOM.343.238 in the preceding year .699 2009 5.37 2.9%) and senior executive category (9.784 8.837 8.784 (Figure 3).44 5.184 2006 4.784 2013 7.240 in 2011. 2013 By Job Category and Years of Working Experience It can be seen from Table 1 that all ICT job categories. registered significant increase in the average salary in 2012.

0 7.4 13.0 5. 2013 Fresh graduates by Industry Table 2 shows that the Semiconductor and Wafer Fabrication industries paid the highest monthly salary of RM3.700 2.280 for fresh graduates in 2012 but had not changed since 2011.500 2.800 3.200 2.715 2.800 2.82 while for Senior Executives it were 2.000 1.500 2. industries like Automotive and Heavy Industry.4 2.225 2.0 14.284 1.950 2.600 2.000 2.700 2.280 2. Similarly.500 3.7 16 Printing/Publishing Science & Technology/Aerospace/BioTechnology Semiconductor/Wafer Fabrication Services Telecommunication Transport/Storage/Freight/Shipping Wholesale/Retail/Trading Geometric Mean (GM) : (Ringgit Malaysia ) Minimum (Ringgit Malaysia ) Maximum (Ringgit Malaysia ) Table 2: Average Monthly Salary of ICT Graduates by Industry in 2012 Source: Jobstret.6 2. ICT graduates in the Construction and Building industry also experienced a significant increase of 12.500 2.310 2.950 75th 2.8 1.325 1.030 2.300 2.670 2.300 2.200 3.425 2.280 2.8 3.800 2.800 2.213 2.0 9. Industry (Central Malaysia) Fresh Graduates / Entry Level (Less than 1 year working experience) Percentiles (Ringgit Malaysia) 25th 50th 2.150 2.200 2.800 2.8 0.800 2.063 2.280 1.775 2300 2500 3280 2115 2150 2250 1925 2343 1925 3280 2011 2.9 4.350 3.275 1.000 1.4 6.71 times higher in 2012.775 2.450 2.063 in 2011 to RM2.000 1.508 2.750 2. Manufacturing.800 3.800 2.275 2.343 2.600 1.300 2.4 -1.300 1.1 12.000 2. indicating a widening disparity in the salary structure.225 2. Freight and Shipping as well as Call Centre and IT enabled Services did not show any improvement in the average salary for fresh graduates in 2012.25 and 2.368 2.800 2.775 in 2012.540 2.500 3.800 2. This is followed by the Electrical and Electronics industry where the average salary for fresh graduates increased by 13.0 0.700 1.225 2. Transport. However.120 2.5 6.400 2.500 0. the Oil and Gas industry registered a signifi cant rise in the monthly salary for fresh graduates from RM2. it can also be observed that Senior Managers earned 5.5 2.000 2.331 2.230 1.000 2.275 2.8%.5%.500 1.350 2.300 Weighted Mean 2012 2.418 in 2011 to RM2. recording the highest percentage increase of 14. the figures for Middle Manager level were 3.225 2.280 2. Storage.800 2. Industry Category Table 2 and Table 3 show the average monthly salary of ICT professionals by industry.343 in 2012. Besides Semiconductor and Wafer Fabrication.418 2.900 1.400 1. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .238 % Change Automotive/Heavy Industry/Machinery Bank Call Centre/IT-Enabled Services Computer/IT (Hardware) Computer/IT (Software) Construction/Building Consulting (Business/Technical) Education Electrical & Electronics Financial Services/Securities/Insurance Hotel/Restaurant/Food Service Manufacturing Oil/Gas/Petroleum 1.023 2.From Table 1.983 2.000 2.350 2.175 2.600 1.36.288 2.44 times higher than fresh graduates in 2011 and 5. which is an increase from RM2.175 2.508 2.2 0.50 and 3.300 2.000 1.4 0.com and PIKOM.800 2.800 2.0 2.500 3.975 2.4% in their salary.

000 3.500 6.000 5.000 10.475 2.000 4.625 14.699 3.500 Computer/IT (Software) - 8.375 11.500 7.200 8.500 3.800 3.500 3.753 Industry (Central Malaysia) 75th 20.700 3.521 4.500 9.300 7.429 14.563 5.215 3.575 3.388 3.575 4.000 16.500 5.346 7.000 8.000 Printing/Publishing - Property/Real Estate - Science & Technology/Aerospace/ BioTechnology - 9.500 4.190 10.000 7.283 2.100 7.800 5.000 5700 6.374 8.000 15.500 5.045 13.000 3.402 3.300 3.879 4. 2012 Source: Jobstret.400 3.000 8.000 5.946 6.500 6.000 8.000 Oil/Gas/Petroleum - 14.650 8.000 6.000 Utilities - Wholesale/Retail/Trading 10.500 4.000 13.000 5.033 1.000 Hotel/Restaurant/Food Service - Manufacturing 11.00 Construction/Building - Consulting (Business/Technical) 8.500 5.000 7.000 8.600 15.800 Bank - 10.275 5.000 Call Centre/IT-Enabled Services - Chemical - Computer/IT (Hardware) 15.250 15.500 15.989 Semiconductor/Wafer Fabrication - Services 13.000 10.438 Percentiles (Ringgit Malaysia) Weighted Mean Weighted Mean Percentiles (Ringgit Malaysia) Percentiles (Ringgit Malaysia) Middle Management (Manager) Senior Executive (5 or more working experience) Junior Executive (1-4 working experience) Weighted Mean 2.521 13.500 5.000 15.045 13.100 3.200 8.966 4.475 3.119 3.200 6.600 4.500 6.116 5.500 5.010 2.050 2.500 19.700 2.000 2.338 4.200 3.500 6.400 9.320 9.800 5.225 5.000 10.100 3.800 21.069 3.660 3.800 19.500 2.500 2.600 11.500 4. 2013 .000 17.801 5.365 7.000 14.575 3.700 3.500 9.425 3.321 12.500 8.833 8.200 7.630 7.154 5.857 7.500 Telecommunication 11.200 4.810 3.100 7.800 17.285 4.605 5.961 14.202 3.000 2.200 8.000 7.000 8730 5.500 2.200 8.400 6.305 3.600 3.400 4.500 17.900 8.200 2.100 5119 5.150 16.063 2.363 8.200 4.600 2.400 3.800 4.091 7.750 2.200 3.800 11.100 3.950 3.200 6.500 6.085 16.600 3.600 6.800 8.138 5.700 5.693 8.000 6.700 8.600 13.237 3.215 3.500 6.158 3.Senior Management (Senior Manager) Weighted Mean 25th 7.250 6.200 6.050 5.600 3.000 8.577 4.700 5.030 3.900 6.350 3.000 8.com and PIKOM.450 4.500 10.500 4.400 3.500 5.675 2.000 3.750 2.800 3.100 4.107 4.625 4.575 3.000 3.504 5.154 7.157 3.750 5.600 7.625 10.000 7.000 11.100 4.420 5.300 3.000 10.200 2.160 4.600 3.313 12.680 15.345 4.400 5.000 8.298 7.300 7.400 2.400 5.396 7.835 5.225 3.500 6.730 10.800 8.070 6.563 3.600 Transport/Storage/Freight/Shipping - 8.000 6.600 11.000 12.100 4.500 9.800 7.500 Education - 8.228 3.000 10.600 4.500 6.675 5.900 2.700 8.925 13865 12.100 2.600 7.000 4.500 6.300 3.350 20.100 3.000 8.300 4.000 9.300 6.226 3.000 13.200 3.400 2.000 12.753 3.950 3.400 10.100 5.800 5.244 9.600 3.700 6.175 13.300 5.000 7.350 20.000 8.000 17.975 8.183 9.500 5.175 11.785 11.959 8.750 3.000 6.000 8.016 5.075 2.300 6.700 Percentiles (Ringgit Malaysia) 25th - 50th Agriculture/Plantations/Aquaculture - Automotive/Heavy Industry/Machinery 7.575 3.170 6.100 2.000 3.300 5.500 4.000 Geometric Mean (GM): (Ringgit Malaysia) Minimum (Ringgit Malaysia) Maximum (Ringgit Malaysia) Table 3 : Average Monthly Salary of ICT Professionals by Industry.960 3.200 4.500 2.300 3.000 3.825 6.000 13.950 4.494 4.800 8.750 3.213 6.091 4.800 3.961 17.000 Electrical & Electronics - Financial Services/Securities/Insurance - 10.500 5.468 2.438 13.600 5.125 13.206 2.500 17.500 10.201 4.000 10.500 4.500 2.125 17.200 3.775 7.500 3.575 3.050 9.400 21.000 7.000 8.100 9.610 5.460 14.000 6.996 3.150 5.500 50th 75th 25th 50th 75th 25th 50th 75th 2.

680 15.201 4.833 8.516 1.0 22.3 6.608 1.6 1.2 7.563 3.7 3.7 6.4 0.601 4.625 7.489 5. 2011 and 2012 Source: Jobstret.6 17.475 2.244 9.762 3.300 5.4 1.523 2.263 14.213 6.475 3.575 6.151 1.8 3.369 10.031 5.100 14.091 7.3 4.125 13.552 2.675 5.550 4.794 11.3 1.610 5.4 9.848 3.5 0.2 3.500 5.0 0.087 5.7 1.6 6.9 10.925 13.9 0.0 1.9 10.374 13.750 7.682 6.157 3.215 3.340 9.170 9.240 8.575 3. 2013 .800 8.285 7.168 41.0 4.225 0.900 1.450 4.125 0.6 6.556 6.020 3.563 5.5 2.204 4.525 2.459 7.9 3.225 5.105 12.8 5.150 4.350 7.0 0.258 4.1 4.825 6.183 9.575 7.063 2.119 5.339 9.3 0.925 0.4 6.2 6.300 7.025 1.905 -17.521 13.400 4.250 36.8 7.4 0.4 0.7 2.928 3.1 2.2 3.496 9.680 15.2 6.1 3.748 6.801 5.100 3.959 8.475 20.3 4.104 5.100 4.837 10.289 5.438 13.002 3.1 2.0 0.013 4.152 5.436 0.803 6.0 2.537 7.6 Junior Executive (1-4 working experience) 2012 2.050 5.000 3.9 29.800 5.800 11.Industry (Central Malaysia) 2012 17.760 6.524 6.215 3.100 3.259 6.345 10.4 3.7 2.800 5.388 3.7 6.8 7.923 6.8 3.2 6.575 3.228 3.6 0.963 14.375 11.865 12.1 9.0 4.400 2.961 14.150 5.575 8.193 5.841 6.2 5.100 10.0 9.835 5.113 3.146 13.9 7.305 3.313 12.500 4.com and PIKOM.0 8.500 8.983 6.175 13.000 8.417 4.4 2.206 ALL JOB CATEGORIES 2011 % change 2012 2011 % change - - 3.0 4.699 3.033 2011 % change 2012 2011 2012 % change 2011 4.283 2.541 6.625 6.7 3.0 9.563 3.500 4.929 9.0 0.258 14.100 5.160 4.4 3.890 6.075 3.575 7200 8.500 4.525 4.154 5.1 8.3 0.9 7.395 4.946 8.0 7.365 12.8 38.069 3.175 11.504 6.925 6.950 14.6 7.2 0.091 8.784 6.313 13.200 17.6 5.316 8.4 2.964 4.600 7.4 3.700 1.237 8.0 2.405 - - 3.034 6.989 5.0 8.7 14.4 0.888 7.000 8.967 7.936 5.600 4.8 3.925 4.675 2.425 3.092 4.166 16.0 6.175 12.8 3.8 6.400 10.7 Table 4 :Comparison of Average Monthly Salary of ICT Professionals by Industry.2 3.300 3.887 17.298 7.1 3.8 7.601 8.0 7.2 14.879 4.276 3.107 4.261 4.0 9.2 3.226 3.028 4.6 0.500 5.8 6.225 11.753 3.436 4.800 5.095 2.099 6.4 11.8 9.953 4.1 7.039 Agriculture/Plantations/Aquaculture Automotive/Heavy Industry/Machinery Bank Call Centre/IT-Enabled Services Chemical Computer/IT (Hardware) Computer/IT (Software) Construction/Building Consulting (Business/Technical) Education Electrical & Electronics Financial Services/Securities/Insurance Hotel/Restaurant/Food Service Manufacturing Oil/Gas/Petroleum Printing/Publishing Property/Real Estate Science & Technology/Aerospace/ BioTechnology Semiconductor/Wafer Fabrication Services Telecommunication Transport/Storage/Freight/Shipping Utilities Wholesale/Retail/Trading Geometric Mean (GM): (Ringgit Malaysia) Senior Management (Senior Manager) Middle Management (Manager) Senior Executive (5 or more working experience) % change 9.769 5.4 2.801 5.961 17.0 5.710 4.473 4.175 7.7 4.950 3.0 32.5 11.8 3.4 8.7 5.250 4.494 7.0 3.400 2.0 4.2 6.693 8.725 4.119 3.150 16.750 5.244 9.084 0.000 0.019 4.8 0.742 6.3 10.521 5.0 5.666 6.575 4.100 5.157 5.

2013 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .563 3.150 13.091 was reported in the Electrical and Electronics industry.280 2.175 9.2%. the Automotive.961 Middle Management (Manager) 14.339 in 2011 to RM10.8% respectively. Aerospace and Bio-technology as well as the Financial Services industries registered a significant rise in the salary for the ICT professionals of not less than 10% between 2011 and 2012.675 3. Heavy Industry and Machinery industry registered the highest pay rise of 14.500 2. Comparison Between 2011 and 2012 by industry Table 4 shows that. Aerospace and Biotechnology industry reported the highest percentage of change (38.com and PIKOM.091 11. The Automobile. the Semiconductor and Wafer fabrication industry offered the highest salary of RM3. the Science & Technology. where the maximum monthly salary recorded was RM17.438 in 2012.775 2.500 5. In the senior executive level.289 7. In the Senior Executive category.409 Chemical Oil/Gas/Petroleum Semiconductor/Wafer Fabrication Automotive/Heavy Industry/Machinery Bank Industry (Central Malaysia) Semiconductor/Wafer Fabrication Oil/Gas/Petroleum Science & Technology/Aerospace/BioTechnology Computer/IT (Software) Bank Industry (Central Malaysia) Oil/Gas/Petroleum Chemical Telecommunication Science & Technology/Aerospace/BioTechnology Consulting (Business/Technical) Industry (Central Malaysia) Senior Executive (5 or more years working experience) 7.521 14. the maximum monthly salary of RM14.175 in 2012. 2012 Source: Jobstret. Discounting the sectors lacking data.475 Fresh Graduates 3. which is an increase from RM3.107 6. on overall.316 7.9% in the Junior Executive category. which is an increase from RM10. Table 3 shows that the Automobile. For the junior executive level.215 3.675 6.753 per month.563 in 2012.6%) in the monthly salary from RM7. the Services and Science & Technology.183 10. Table 4 also shows that ICT professionals in the Senior Management category working in the Financial Services industry received the highest salary increment of 36. No data was reported for Semiconductor and Wafer Fabrication. In the middle management level.425 19 Table 5 : Top Five Paying Industries by Job Category.100 in 2011 to RM3.259 7.250 to RM13. Heavy Industry and Machinery.653 3.450 2.8% and 29.099 7.504 10.034 Senior Management (Senior Manager) 17.500. Science & Technology. Heavy Industry and Machinery as well as the Computer Hardware industries were the top-paying ones in the senior management category. Aerospace and Bio-technology industries recorded the highest pay rise of 32. the Oil and Gas industry reported the highest monthly salary of RM7.961 .438 17. Further scrutiny revealed that in the Middle Management category.400 16.879 Junior Executive (1-4 working experience) 5.280 7. Top Five Paying Industries Industry (Central Malaysia) Oil/Gas/Petroleum Automotive/Heavy Industry/Machinery Science & Technology/Aerospace/BioTechnology Telecommunication Services Industry (Central Malaysia) Automotive/Heavy Industry/Machinery Computer/IT (Hardware) Oil/Gas/Petroleum Manufacturing Bank Industry (Central Malaysia) Electrical & Electronics Semiconductor/Wafer Fabrication Oil/Gas/Petroleum Science & Technology/Aerospace/BioTechnology Wholesale/Retail/Trading ALL JOB CATEGORIES 8.Experienced ICT Professionals by Industry The highest salary earned by ICT professionals differed among industries as well as by the number of years of working experience held. Construction and Building and Chemical industries where the pay could also be equally high.

which is an increase from RM12.com and PIKOM.867 10.044. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . Gas and Petroleum industry dominated the list in all the categories.957 7.912 4.0% and 6.129 ICT Senior Executive 3.533 7.Table 5 shows the top five paying industries for each ICT job category.417 4.689 2. ICT Senior Managers in the ICT Call Centres/ IT Enabled services and ICT Software categories also registered significant rise in their salary. ICT software and ICT-enabled services including call centres. in 2012 Senior Managers in the ICT sector experienced an average pay rise of 11. Jobstreet.475 in 2011 to RM17.975 9. By Job Category Figure 4 shows the average salaries of ICT professionals by job category within the ICT industry. except in the Senior Management level for which the salary remained stagnant between 2011 and 2012. The worst hit were ICT Junior Executives who received only a 1.5% pay rise on an average between 2011 and 2012 (see also Table 6).912 ICT Middle Manager 5.044 Figure 4: Average Monthly Salary of ICT Professionals by ICT Industry Segments Source: Jobstret.322 7. the results showed that the Oil.400 in 2012 (Table 6). Aerospace and Bio-technology industry which constituted as one of the top five paying industries for all the job categories. ICT hardware professionals netted the highest pay increase of 20. 9. On the contrary.778 3. Of the 25 industries covered in the investigation.6%. 2013 Within the Senior Manager category.837 4.061 4.2%.588 in 2011 to RM14.082 3.440 2.533 ICT Senior Manager 8.938 5. The salary increment experienced by all ICT job categories except the Senior Manager category was not very encouraging.322 4. ICT Industry Segments For the purpose of compiling salary records.876 12. It is followed by Science & Technology.778 4. a jump from RM14.588 Average Salary in Ringgit Malaysia 12000 9000 20 7.129 3.681 4.082 6000 3000 0 ICT Junior Executive 2008 2009 2010 2011 2012 2.0% respectively.044 12.com had categorised the ICT industry segments into ICT hardware.588 14.797 3. 15000 14.

681 4.533 2.2 ICT Senior Manager ICT Software 8.3 ICT Software 5. 2013 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .749 4.263 7. 16000 14000 12000 10000 8000 6000 4000 2000 0 21 Ringgit Malaysia Senior Management: (Senior Manager) 13. As in the previous year.364 13.236 ICT User Industries ICT Producer Industries Figure 5: Average Monthly Salary of ICT Professionals by Job Category.556 4.417 4.com and PIKOM.475 8.3 ICT Industry 3.408 5.044 11.320 4.930 6.075 5.019 9.575 4.0 ICT Industry 8.428 4.130 4.025 3.835 1.646 7.924 3.998 9.800 1.837 4.082 3.5 ICT Hardware 3.000 10.876 12.018 7.538 4.355.1 ICT Industry 5.869 4.9 ICT Hardware 7.0 ICT Industry 2.com and PIKOM.720 3.903.300 3.519 9. which is marginally higher than their counterparts in the User industry where the average was only RM5.995 5.939 6.0 Call Centre/ICT Enabled Services 10.505 5.500 2.557 2.767 2.797 3.8 2008 2009 2010 2011 2012 % change 2011-2012 ICT Middle Manager Year ICT Hardware 5.440 2.600 6.750 4.975 9.567 10.354 Senior Executive: (> 5 Year Working Experience) 5.957 7.625 6.052 6.778 4.700 11.437 Junior Executive: (1-4 Years Working Experiance) 3.100 3.475 17.735 Middle Management: (Manager) 8.3 ICT Software 2.750 3. ICT User Industries and ICT Producer Industries Source: Jobstret.971 9.216 3.758 13.3 Call Centre/ICT Enabled Services 6.405 10.779 15.6 2008 2009 2010 2011 2012 % change 2011-2012 Table 6: Average Monthly Salary by Job Category and ICT Industry Segment Source: Jobstret.912 2.225 0.925 3.190 4. The 2012 data revealed that ICT professionals in the Producer industry on the overall earned an average monthly salary of RM6.769 4.400 4.400 20.548 8.002 3.ICT Executive Year ICT Hardware 2.4 ICT Senior Executive ICT Software 3.350 12.325 2.588 14.051 8.129 1.3 Call Centre/ICT Enabled Services 2. 2013 By ICT User Industries Figure 5 shows the distinction in the average monthly salary earned by ICT professionals working in the ICT Producer and ICT User industries. there is no distinct difference in salaries earned by ICT professionals in these two segments.748 2.322 7.250 10.500 2.063 1.718 6.061 4.8 Call Centre/ICT Enabled Services 3.225 3.689 2.019 5.900 14.160 2.

netted the highest earnings compared to other ICT job functions.000 6.542 and the experienced ones netted as high as RM 16.167 7.327 3.00 1.667 11. HTML.917 Job Functions Information Technology.667 13.583 Maximum Monthly Salary 17.783 monthly and the experienced ones can net as high as RM10. netted RM6.com/research/ ) and PIKOM ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .000 10. As shown in Figure 6.567 4.833 3.419 2.244 2.638 4. HTML. Microsoft Certified Professional (MCP) and Cisco) Software Developer/Programmer (Java.616 11.PayScale.417 1.500. whether they are Java. As expected.167 2. On an average AutoCAD engineers were paid RM4.417 2. It can be seen from this table that ICT professionals in the managerial category.542 7.917 7.000 7.638 per month.692 Median Monthly Salary 7.417 2. on an average. who tend to net as high as RM7.242 7.778 3.997 3.100 7.717 Figure 6: Median Monthly Salary of ICT Professionals and Benchmarking Scale by Years of Experience.PayScale. Microsoft Certified Professional) SAP Consultants Information Technology Consultants (Java.917 per month only. Mean Monthly Salary 9. Web designers earned the lowest monthly salary.700 8.432 2. which is almost two times higher than software engineers.SQL. Microsoft Certified Professional (MCP) and Cisco) Database/System Administrators (Microsoft and Cisco Certified) AutoCAD: Civil Engineering Software Engineer (Java.Selected Key ICT Job Functions The average monthly salary earned by key ICT professionals is shown in Table 7. Project Manager (Java.com/research/ ) and PIKOM Years of Working Experience Typically one expects the salary of an employee to go up in tandem with the number of years of working experience.288 3.39 5.SQL.SQL. SQL or MCP certified. 2012 Source: (http://www.042 2.22 more than those who have less than one year of working experience. Median Salary (Ringgit Malaysia) / Benchmarking Scale 12000 10000 8000 6000 4000 2000 0 Less than 1 Year 1-4 5-9 10-19 1. which is 50% higher than the earnings of Software Engineers. Web Designer Table 7: Average Monthly Salary of ICT Professionals by Job Function 2012 Source: (http://www. among the listed jobs.22 20 year or more Median Salary (RM) 2.SQL) 22 Programmer/Analyst (Java. Being a highly specialized job.667 3.500 16.31 2.647 6. IT Project Managers can net an average monthly salary as high as RM17.692 monthly. HTML. the average monthly salary earned by SAP Consultants in 2012 was RM8.973 4. the Senior Software Engineer.317 4.667. an average of just RM3.500 2.783 4.967 6.935 5.783 4.667 4.000 per month.333 11.667 10. HTML.773 Minimum Monthly Salary 4.250 3.867 5.021 6. the median salary of those have more than 20 years of working experience earned 5.019 7. HTML. HTML and MCP) Senior Database/ System Administrators (Microsoft and Cisco Certified) Senior Executive Engineer (Java.SQL) HTML. HTML.24 3.

Employment Size Employment size matters in determining the average monthly salary of employees. where the average median salary of ICT professionals in Petaling Jaya or Shah Alam tends to be lower than their counterparts in the capital city.022 Johore 3. As shown in Figure 7.88 times more.982 Ipoh 2.com/research/ ) and PIKOM Gender Despite gender equality.321 4. Even within the Klang Valley.75 times higher than their counter parts working in smaller locations like Ipoh.03 1.000 employees was 1.906 Median Salary (RM) Figure 8: Average Monthly Salary of ICT Professionals by Geographic Locations. which is taken as the baseline. the salary data interestingly revealed that male ICT professionals tend to earn a median salary of RM5.03 1.363 Median Salary (RM) 3.201 while females earned a median salary of only RM3.PayScale. the median salary paid by companies with more than 2.855. ICT professionals working in Kuala Lumpur and Cyberjaya tend to earn 1.75 1. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . Comparing against the smallest sized companies in the 1-9 employees category.472 Kuching 2.092 Cyberjaya 5.20 1. 2012 Source: (http://www.426 Figure 7: Median Monthly Salary of ICT Professionals and Benchmarking Scale by Employment Size. 2011 Source: (http://www.805 5.38 1.PayScale. 23 Median Salary (Ringgit Malaysia) / Benchmarking Scale 6000 5000 4000 3000 2000 1000 0 1.27 1.024 Petaling Jaya 4. which work out to a 35% difference.19 1. large corporations or multinationals (MNCs) tend to pay higher than smaller ones. the disparity in the salary is quite distinct.60 1-9 10-49 50-199 200-599 600-1999 More than 2000 6.88 1.00 1.499 Shah Alam 3.42 1.390 3.00 Kuala Lumpur 5.493 4.com/research/ ) and PIKOM Geographical Location As shown in Figure 8.73 1. Median Salary (Ringgit Malaysia) / Benchmarking Scale 8000 7000 6000 5000 4000 3000 2000 1000 0 1.

Certified Network/ System Engineers Certified Database Administrators 24 TECHNICAL C# Java C++ . consulting.Gender Male Female (Male salary / Female Salary) Median Salary (RM) 5. especially in fending off malware makers and cyber thieves.Net APPLICATIONS SAP ERP IT Audit IT Security Help Desk Analysts Big Data Analytics SOFT SKILLS Project Management IT Consulting Business Process Improvement Quality Improvement Figure 9: Hot ICT Jobs by Area of Applications Source: JobStreet. large organisations in particular need Java programmers to transfer data from legacy systems. professionals specializing in IT audit and IT security are proliferating. as depicted in Figure 9.9 Table 8: Gender Disparity in ICT Salary in Malaysia. Irrespective of technological evolutions.Net.com/research/ ) and PIKOM Hot ICT Jobs Hot ICT jobs depend on the area of applications. Being an open platform and the ability to speak to any back end system. SharePoint and Web Application Development are highly sought after. Similarly.201 3. Though demand for certified professionals in SAP or ERP are at an all time high. C++. especially in big companies desiring to extract insights from their petabytes of stored data. Big Data Analytics is also a fast growing job area. In addition. The best candidates for Big Data Analytics jobs are those equipped with interdisciplinary knowledge and experience pertaining to not only technical know-hows but also with a strong statistical/mathematical background. in the technical domain. Specifically. . Demand for network engineers and system administrators is on the rise in tandem with the expanding scope of cloud computing and Windows 7 related migration activities.855 134. Within the Business Applications domain. 2012 Source: (http://www. organisations shifting towards cloud computing are spurring the need for infrastructure professionals. programmers and engineers equipped with knowledge of Java C#. the demand for soft-skilled professionals especially in project management.com ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . process and quality improvements is ever present.PayScale. the demand for ICT professionals also vary greatly. demand for mobile application developers and user interface designers who can develop user friendly and versatile applications are also on the rise. software developers.

Regional Benchmarking 25 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .

89 0. recorded average remunerations that were 2.54 times more than the average remuneration earned by Malaysian ICT professionals in 2012 (Table 9).08 Table 9: Benchmarking Salaries Earned by ICT Professionals of Selected Countries and Malaysia.22 0. which is significantly lower than the nonPPP adjusted scaling depicted earlier.45 1.68 1.60 1.74 3.71 1.45 2.49 0.15 1.39 1.05 0. China.90. Two types of benchmarking scales were published.20 times more than in Malaysia respectively. indicating a much more attractive nation in Asia for talent migration.00 1. ambitious job seekers should use PPP adjusted figures when searching for overseas jobs.57 1.53 0.49 1.25 to 2. namely IT skills.61 1. 2012 Source: (http://www.44 0.80 1.36 0.00 2.87 1.73 2.72 1.73 2. The average value for each country is compiled after taking into consideration three variables.com/research/ ) and PIKOM ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .74 1.63 0.31 2.95 2. the scaling factors for Singapore and China lowered to 1.38 1.44 1.84 1.54 0. Surprisingly.31 1.47 1. With PPP adjustment.52 3. The median data published by PayScale for the year 2012 was used.26 1.59 3.56 1.56 1.66 2.86 3. Indonesia.25 3.45 0.24 Benchmarking Scale: Malaysia= 1.47 1.90 2.00 2.59 0.85 1. the results showed that more advanced Asian economies.91 0.51 3. specifically one with purchasing power parity (PPP) that takes into account inflation rates and fluctuations in the foreign exchange rates and the other without PPP adjustment. Vietnam recorded a higher scaling value of 1.23 1.10 254 0. average remuneration earned by each country is compared against Malaysia.08 3. which takes into account for inflation and foreign exchange rates as well as standard of living.74 1. the result showed that Hong Kong still ranked the highest paying nation in Asia for ICT professionals.10 2.36 0.63 respectively. company size and years of working experience.00 2.06 0. offering 1.50 1.44 1.05 2.11 1. Comparatively.46 2.25 2.48 1.96 2.08 4.66 0.17 1. For the purpose of this benchmarking exercise.00 1.00 2.35 0. Similarly. Here.24 1.95 0.68 1. 26 Country IT Skil/ Speciality Company Size Year of Experience Average Benchmark Scale IT Skil/ Speciality Company Size Year of Experience Average Benchmark Scale Benchmarking Scale: Malaysia=1.00 (Atlias Method) Malaysia Singapore Thailand India China Phillipines Vietnam Hong Kong Indonesia United Kingdom Canada New Zealand Australia USA 1.55 1.87 0. the scaling factor is only 1.Table 9 shows a comparative analysis of the remuneration earned by ICT professionals in selected Asian and English speaking countries.60 1.57 1.25 1.62 2. in particular Hong Kong and Singapore.41 2.69 0.39 1.16 2.70 1.90 0.79 2.PayScale.84 1.76 3.35 0. India and Philippines offer lower remunerations to their ICT professionals. All measurements are tallied in US dollars. giving rise to a scaling factor that is free from bias caused by foreign exchange fluctuation. Malaysia assumes a scaling factor of one.75 3.87.06 1.67 3.20 2. Indeed.00 (Purchasing Power Parity (PPP) Adjusted) 1. Besides these two countries. Comparison Against Asian Countries Without any PPP adjustment.41 2. However.59 0.42 2.40 1.79 2.84 and 1.87.66 1.47 1. technically speaking. 1.00 1.06 0.43 1. Thailand and Vietnam offer higher remunerations for ICT professionals.36 and 1.00 2.72 1.63 1.

that is. 63 47 0. 4 44 0 0.87 1. becomes a crucial consideration factor for potential job seekers before making any decision on job related migrations.00 1. 2. 0 00 1.73 56 0. Without PPP adjustments. 08 24 3. 1. UK’s scaling factor reducing from 2. 27 . 9 66 1.24 2. Atlas Method PPP Adjusted 0.20 1. taking into considerations of PPP adjustments. 1.51 1.66 1.90 3. Phillipines Indonesia Malaysia India Thailand United Kingdom China Canada Singapore New Zealand 1. Australia and New Zealand.51 without PPP adjustment to 1.08 2.44 0. 53 3. 26 2.90 times respectively. Hong Kong Australia 1. 2.0 0.86 1. Vietnam 20 1.PayScale. 4.53 1. 3 1.24 times more respectively without PPP adjustments than what a typical ICT professional in Malaysia can earn.5 90 90 87 84 72 84 87 1.com/research/ ) and PIKOM ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 USA 3.05 scaling factor also appeared as an attractive destination for ICT jobseekers but the PPP adjusted value reducing to 1. the USA becomes a higher paying destination than Australia.56 0.00 1. English is a popular lingua franca among Malaysian businesses especially among the private sector and there has been always a natural attraction for Malaysians to do more businesses with such English speaking countries. 1.47 PPP adjusted does not suggest it to be a very attractive destination as an ICT job market. 1.84 1. 3.87 2.76 1.44 0.0 2.0 76 05 3.36 1. especially software developers and networking engineers who are in demand at all times globally. Canada with its 3. Despite the distance. in particular United States of America. .73 0.72 suggested otherwise.84 2. 4 0.08 and 1. Canada. these countries have long diplomatic and trade ties with Malaysia. But. These destinations are no exceptions for ICT Professionals as well.Malaysians are typically known to search for better opportunities beyond the shores of Asia. 6 36 1. The distant lands that become attractive destinations for Malaysians are mostly English speaking countries.5 0. 2. Moreover. Indeed. it can be seen that the cost of living and foreign exchange fluctuations have significant impact on the salaries earned and thus.5 1.47 1.0 1. 2.5 3. Similarly. 4 0.72 2.90 Figure 10: Benchmarking Salaries Earned by ICT Professionals in Malaysia and Selected Countries.49 0.36 2. 0 1.0 1. 3. 2012 Source: (http://www.76 and 3.05 1. 86 51 2.63 3. United Kingdom. Figure 10 shows that the Australian and USA job markets offer the highest remuneration.26 1.

Employment Outlook And Perception 28 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .

0 50.3 51.2 31.8 47.9 43.January 2013 Source: Jobstreet.7 2009 44.7 51.9 48.7 42.This report also attempts to present the overall ICT job market outlook from an industry’s perspective and from the perception of potential jobseekers. is shown in Table 10.8 50.7 36.1 50.9 32.1 49.6 47.1 37.2 51.8 48.3 50. indicating increasing confidence in the local job market.0 36.6 49.6 51.1 2011 52.2 48.0 53.6 52.2 52.1 49.3 49.1 32.4 43.com Employment Confidence Index (JECI). As shown in Figure 11.8 48.2 2008 50.5 54.7 49.7 34.0 48.6 48.5 29 Table 10: Job Employment Confidence Index: January 2001.3 49.0 49. A high index indicates a comfortable job market. which is compiled on a monthly basis.4 49.5 32.9 50.5 32.7 48.9 50.0 28.6 47.6 50.5 48.1 51. JECI ranges from zero (very poor) to 100 (very good).6 47.5 50.8 in 2012.9 48.2 53.0 50.com and PIKOM ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .1 50.6 49.7 49.1 50.7 50.0 32.0 34.9 2005 47.7 34.2 50.9 2003 36.1 33.2 50.5 37.0 49.6 31.2 49.2 47. before it shot up slightly in January 2013.6 46.9 49.7 45.7 50.8 49.7 49.2 31.2 48.4 2010 47.8 44.1 34.4 31.5 34. where people are able to secure a good job easily.9 37. the JECI has significantly dropped from 51.1 50 JECI Index 45.1 43.6 51.7 34.0 51.0 41.9 47.9 47.1 50.6 2001 42.8 35.com 60 51.2 49.1 52.1 42.1 49.3 48.7 48.6 in 2011 to 48.5 49.4 51.7 34.4 43.5 31.8 49.3 41. JobStreet.9 30.0 39.4 47.8 40 36.5 45.1 2012 50.7 51.9 35. Month JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC 2013 49. A low index shows a tough job market situation where employment seekers find it difficult to get a job.7 48.9 53.6 46.0 41.8 41.6 39.8 46.4 51.8 2002 31.7 32.7 48.6 2006 49.4 48.7 52.8 2012 2013 Figure 11: Job Employment Confidence Index: 2001-Jan 2013 Source: Jobstreet.2 34.9 61.7 35.4 40.2 51. A total of 227 JobStreet.8 51.8 51.4 48.3 42.com Confidence Index (JECI) The JobStreet.9 50.7 49.2 31.6 49.0 2004 41.7 49.3 50.5 51.2 36.6 49.5 39.com clients. managers and senior managers across various industries in Malaysia participated in this survey conducted in February 2013.3 2007 52.6 30 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 48.

“f” denotes the frequency expressed as percentage of responses netted or implicitly weighted.69 in 2011.62 in 2012 from 2.com Job Outlook Report. accounting/finance. where all the responses indicative of “much worse”. Source: PIKOM ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . marketing. the new hiring is to be mainly in the areas of sales. ∑ fi =1. The result is shown in Figure 13. the average for the best case scenario where all the respondents indicate “much better” will be 4. Less than 5% of respondents acknowledged that they would not be hiring in the foreseeable future. would be 1. 50 40 30 20 10 0 We're expanding. 36% of the respondents are expecting to increase their hiring in the next 12 months. similarly. For comparing the job hiring sentiments over the years. The values assumed for the various categories of responses were. However. “W” denotes the values assigned for each response category and “i” denotes the industry. which is likely given the positive economic outlook.0% 25% 42% 43% Figure 12: Hiring Activities Outlook. replace / fill essential positions only”.com Hiring Prospects: For the First Quarter (Q1) of 2013. as such. The JHIS revealed that the index came down to 2. and manufacturing. 2012 Source: Jobstreet. 1 for “We’re not hiring in the foreseeable future” As such. the expected average for the worst case scenario.5. 30 To gauge the overall job hiring sentiments in terms of annual trends. PIKOM used the Job Hiring Index Score (JHIS) procedure as outlined in the Box below. hence hiring more people We're maintaining hiring rate 1Q2013 Hiring less / Replacing or filling in essential position only 1Q2012 We're not hiring the forseaable future 36% 23% 18% 9. Among the 36% who indicated they were expanding.Anticipated Hiring Activities for the next 12 month According to the JobStreet. 3 for “We’re maintaining our hiring rate this year” 2 for “Hiring less. the hiring climate is looking positive for the 1st quarter of 2013 (Figure 12). the overall job hiring sentiment is shown to be picking up for the year 2013.0% 4. PIKOM calculated a Job Hiring Index Score (JHIS) using the following procedure: I=∑ fi Wi / ∑ fi In the formula above. Malaysian employers have a brighter job outlook for their hiring initiatives. which indirectly reflects a positive job outlook for Q1 of 2013. as follows:4 for “We’re expanding and hence hiring more people”. the expected or implicitly weighted average for JHIS value will be 2. a 5-point drop from the 9% in 2012.

which ranked either third or fourth positions from 2009 to 2012. Interestingly Computer & IT (Software). the top specializations employers seek has changed over the past five years. Customer service category is also seen sliding down the top ten. They are manufacturing. On the contrary. In comparison with the last quarter. Sales.75 2.90 2.2. 2012 -2013 As mapped out in Table 12. marketing and business development jobs are consistently ranked among the top most sought after jobs.70 2. and mechanical engineering.86 Figure 13: Job Hiring Index Score 2010-2013 Source: PIKOM Top Specializations Sought As reflected in Table 11. followed by those with expertise in manufacturing.86 2.60 2. mechanical engineering and other engineering jobs drew attention of potential employers.65 2. for most industries jobseekers in sales and marketing are still the most sought after. mining (oil & gas) reported that they would most likely experience a better job growth in the next 12 month. finance computer and IT. accounting and engineering. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .50 Q1:2010 JHIS 2. engineering. Respondents from major industries such as hotel & restaurants.80 JHIS 2.62 Q1:2013 2. Top 10 specializations employers seek 1Q 2013 1 2 3 (new) 4 5(new) 6 7(new) 8 9 10 4Q 2012 1 2 − 8 − 6 − 7 9 4 Sales Marketing Manufacturing Accounting Engineering (Others) Engineering (Electrical) Engineering (Mechanical) Human Resources General Administration Customer Service 31 Table 11: Top 10 Specializations Employers Seek.62 2. three new specializations have entered the top 10 list.69 Q1:2012 2.62 2.69 2.62 Q1:2011 2. did not get into the top ten specializations employers seek for the year 2013.85 2. manufacturing.55 2.

CEO. Only 13% of the respondents are looking for fresh graduates.GM) 0% 10% 0.2013 Sales Marketing and business development Manufacturing Accounting Engineering (Others) Engineering (Electrical) Engineering (Mechanical) Human Resources General Administration Customer Service 2012 Marketing and business development Sales / Marketing (merchandising) Customer Service Computer & IT (Software) Engineering Mechanical Human Resources General / Cost Accounting Sales / Marketing (technical) Maintenance Engineering Electrical 2011 Marketing and business development Sales / Marketing (merchandising) Computer & IT (Software) Customer Service Human Resources Top Management Sales / Marketing (technical) General / Cost Accounting Computer & IT (Hardware) Education. 32 Fresh graduate Junior level (less than 4 years experiance) Supervisor / Specialist Manager / Assistant Manager Director / Vice President Top Management (President. such as accountants and engineers (Figure 14).9% 13% 52% 24% 11% 20% 30% 40% 50% 60% Figure 14: Job Positions Sought After in 2013 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . 52% are looking for junior level positions which require less than 4 years of experience followed by 24% who are looking at people with specialised skills. Human resource managers in many industries expressed difficulties in hiring fresh graduates as many candidates without working experiences are demanding a high salary. Training & Development 2010 Marketing and business development Sales / Marketing (merchandising) Customer Service Computer & IT (Software) Engineering Mechanical Human Resources Sales / Marketing (technical) General / Cost Accounting Top Management Clerical / General Administration 2009 Marketing and business development Sales / Marketing (merchandising) Computer & IT (Software) Engineering Mechanical Sales / Marketing (technical) Customer Service Human Resources General / Cost Accounting Top Management Table 12:Top Specializations Sought Trend: 2009-2013 Position Level Sought According to respondents. Managerial levels and above might be experiencing a more difficult period as only 11% of the respondents are looking to fill such positions.

KPMG MALAYSIA 33 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . EXECUTIVE DIRECTOR.Rethinking HR in a Changing World: A Practitioner’s Discourse BY WOON TAI HAI.

sustainable cost management.000 and 10. More than one-half of respondents (58 percent) primarily serve an HR function. The Global study of 418 executives comprised with more than one-third (37 percent) of respondents who identified themselves as C-level executives. The “big three” challenges to HR’s new growth agenda The people agenda in most organisations contains some truly business-critical issues and the need for HR to rise to the “big three” challenges has never been more acute. more flexible workforce.. Survey respondents expect little change in the next 3 years. the remainder (42 percent) represents a wide range of other functions. The report’s main findings include the following: • HR is struggling with the challenges of managing a global. aptly entitled. This has required HR to play its part. managing a flexible and virtual workforce – but not at the cost of loyalty and career development 3. with the remainder being at the management level up to senior vice-president. The global study. flexible workforce. But there is a clear case for HR functions to also generate value in the wider business and that there are some signs that this drive for value creation from HR will become increasingly important. These developments have made the retention of key talent and building workforces in new markets the top priorities of HR departments over the last 3 years. “Rethinking Human Resources in a Changing World” examines the nature of the challenges facing the HR function and its future direction. The global workforce has become increasingly integrated across borders while simultaneously growing more virtual and flexible. and healthcare & pharmaceuticals (all at 11 percent). balancing the global and the local – managing. hiring and identifying talent globally while retaining important local insights 2. Yet only about one in four respondents say that HR at their company excels at core issues such ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 34 . there has been a preoccupation with cost optimisation.Introduction In the last 5 years.000. North America (28 percent) and Latin America (10 percent). the remaining 47 percent have between 1. financial services. These “big three” challenges and other key findings were derived from a global study by the Economist Intelligence Unit between May & June 2012. cost reduction. but not necessarily more effective. IT. The “big three” challenges to HR’s new growth agenda are: 1. commissioned by KPMG International. No one expects this focus on costs to change in the short to medium term. Europe (30 percent). including manufacturing and energy & natural resources (both at 12 percent). More than one-half of the companies surveyed (53 percent) boast more than 10.000 employees – 22 percent have over 50. largely through making the HR function more efficient.000 employees. retaining the best talent – maintaining employee engagement in the face of a less committed.. all things ‘cost’. A wide range of industries is represented. The respondents are based in Asia-Pacific (32 percent).

• Technology has already transformed HR and the application of data analytics will foster even more profound change. Sixty-nine percent of survey respondents say that in the last 3 years. Yet the advantages of the HR self-service function are undeniable. supporting a virtual and flexible workforce. I believe that is because talent management is so often anchored in the present rather than focusing on the unique roles. present a rare opportunity for HR to enact long-overdue reinvention. Insights from interviewees for this study point toward improved employee engagement as the way to address many of these problems. They have also provided employees with more flexible and tailored training opportunities while creating a positive culture for communication. only 3 percent of respondents have cut back on these technology enhancements. leadership and credibility. so that HR heads can deservedly insist on a place in strategic conversations at the highest levels –– develop closer partnerships within the company. Interviewees explain that the application of analytics. Looking ahead. administrative work faster and more efficiently. their companies have increased the use of mobile or web-based platforms. TIM PYNE KPMG HR Transformation Center of Excellence I believe. such as the development of HR policies and approaches that have global application but can be made relevant to local conditions. though. These have already enabled HR to do its basic. benefits. capabilities and skills the organisation needs to suceed in the future. but business leaders don’t feel that HR is delivering for them. This will involve creative solutions. Technology with the power to transform HR The advent of data analytics – the most commonly cited area by respondents for IT investment in the next 3 years – will lead to the next technological quantum leap for HR. not just the HR function. HR needs to: –– develop greater confidence. Web-based and mobile apps have enabled many employees to handle their own HR services. talent management should be the top priority for HR. Nearly half (49 percent) are making greater use of the cloud to power these. payroll) than it was 3 years ago. Sixty-nine percent of companies surveyed say it is more common for the HR function to provide web-based and/or mobile HR platforms (e. including benefits. Some of the advantages include: 35 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 ..as sourcing and retaining key talent globally. • Finding ways to engage with workers will help address the challenges of this global. if done properly. The shift to mobile and web-based platforms has not always been easy. Powerful technologies. payroll and performance evaluations. flexible and remote workforce. will enable a more robust understanding of employee-related needs and opportunities. and supporting the greater globalisation of the business. It will also require new ways to engage meaningfully with a workforce that is less committed to the organisation. emerging in times of heightened financial constraints. For example. especially with line managers who will inevitably use technology-driven HR services to play a greater role in employee management –– recast its strategy so that it begins from a whole-business perspective and is aligned with the needs of the entire company. already 57 percent of respondents say that data analytics is helping to identify future talent gaps..g.

but to also collect clearer information on its supply chain of talent and where the most demand for particular skills lies. 36 The future of HR: Eradicating the stigma It is practically a business truism that the HR function is not well respected at many organisations. Analytics will allow HR to not only be involved in managing talent. Better training – Moving away from classroom training toward a more interactive. Kate Terrell. • Only 17 percent view it as able to demonstrate measurably its value to the business. and they can share the facts with their teams to help drive better decision-making. There clearly remains a vast gulf between the perceived importance and the perceived effectiveness of HR today. Human Resources. But they’ve done so with limited success because they have focused on rolling out generic HR models and universal best pratice. rather than customized solutions that support the value drivers of the business. Strikingly though. to provide hard evidence for their opinions. and potentially. Organisations are exploring how to use technology to create a company brand that is attractive to people joining it. much more insightful. the HR function will be able to provide a far more granular roadmap of how the organisation’s people resources need to be reshaped to deliver on the corporate strategy. much more laser-focused on where you should be spending your time.. thereby gaining much-needed credibility at the highest levels of the business. Creating a positive culture and brand for current employees and potential hires – New technologies are playing an important role in how we connect people in the organisation and how we create a culture that is a medium for people. • Only 15 percent of our survey respondents see HR as able to provide insightful and predictive workforce analytics. this stigma is clearly evident in the global survey results. executives should take ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . at Whirlpool Corporation. As the shifting challenges of globalisation and virtualization combine with the new technological tools available to enable a reshaping of the HR function. It enables employees to learn in more bite-sized chunks and in a much more visual manner. demonstrative approach. Whether deserved or not. HR has a perception problem. explains: “When you arm a business partner of the future with analytics. In many cases it may have actually failed to deliver real value. At the very least. that HR functions have tried for the past 15 years to tranform themselves into strategic players and earn a place at the leadership table. The next step: data-driven HR Data analytics is the most commonly cited area (selected by 31 percent of respondents) for planned HR technology investment in the next 3 years.ROBERT BURTON KPMG HR Transformation Center of Excellence I believe. a household appliance manufacturer. Data analytics gives HR departments the long-overdue chance to become more empirical.. Rather than acting on instinct alone. vice president. 81 percent of respondents see talent management as a key competitive advantage over the coming 3 years. This has been a very positive development and had a very powerful impact. it allows you to be much more strategic. Now they’ve caught in what I call the “doom loop”. Global Products Organisation. Doing the basics better and more efficiently – Moving toward a more self-service model has improved basic HR service efficiency while freeing up HR to focus on delivering more strategic services that add value to the core priorities of the business.

transactions and life-cycle processes. pensions or mobility (transfer administration). benefits. or the reduction in costs. Make the value of HR more prominent and understood Perceptions about HR in the wider company may arise from the very nature of its role. and creating HR strategies to fit.a number of steps to improve the function’s contribution and its image. But it will also likely reduce the number of HR staff that companies require. Technology and workforce analytics could really shake up HR as we currently know it. Learning to listen deeply is one of the skills that HR functions need to develop. In turn. 37 Move from administration to higher-value-added activities A technology-enabled HR function will allow professionals to avoid being immersed in the minutiae of recordkeeping. It entails thinking more carefully about the specific business outcomes of the actions that HR recommends. As the HR function works behind the scenes.. PAULETTE WELSING KPMG HR Transformation Center of Excellence I believe. a business that fundamentally focuses on providing lowcost goods will require a fundamentally different HR strategy than one that is focused on delivering leadingedge innovation. What is the impact on customer service. These slimmed-down departments will then be able to focus on providing more strategic. this requires a far deeper grasp of the organisation’s core business model and strategy and the implications this holds for the rest of the business – to date. well thought-out predictive workforce analytics could become as important to the CEO as the blalance sheet and P&L statement. in part by insisting on being included in strategic conversations. The right business language helps to open the door. a shift that 45 percent of respondents expect to occur in the next 3 years.. it is also about taking a fuller perspective of the whole business.” says Professor Ulrich. Of course. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . understand and communicate in the language of business HR needs to eliminate the jargon of its specialization (the same challenge IT continues to face) and begin to link its work more explicitly to business value. Some of HR’s traditional administrative work will almost inevitably find another functional home. but it is also important to provide a robust business case for projects. there is no reason why HR needs to pedal the wheels. HR would remain the architect of these systems. not only in terms of the context of their role but in terms of continually improving the organisation. many in the organisation may not be aware of the good things that it is doing. something that far too few HR practitioners have mastered. Think. particularly where managed on a contractual outsourcing basis. HR practitioners need to make sure the company knows and understands the value they can deliver. or the increase in staff loyalty. higher-order services. It also involves understanding the needs of the whole business better in order to make that contribution. including both internal factors as well as external business conditions. “This is an inevitable part of being a staff support role where HR is the architect and the line managers are owners of the work. But once the desired model is established. To put this in context. or other metrics that are more specifically relevant to the line managers and departments being supported? Importantly. There is no compelling reason for HR to manage the transactional administration of payroll.

restoring HR’s much-needed credibility at the highest levels of the business. particularly when it comes to managing expectations – after all. While communication has a role to play. talent management and technology will reinforce the need for HR to make the people agenda as important to business leaders as the balance sheet and P&L statement. Quite simply. 38 Acknowledgements The above article was a reproduction from a global study by the Economist Intelligence Unit between May & June 2012. there is no escaping the prospect of a shrinking and weakened HR function in the coming years. for example. as other managers. data analytics is an ingredient that has long been missing. there are no simple solutions. This study suggests that HR perceives its biggest current challenge to be seizing the opportunity to transform itself into a strategic player. But they are no less urgent for that. and creating insightful forecasts on the back of it. To do this. it is a way of providing hard evidence about employee-related needs and opportunities and the impact of HR. The insights that can be gleaned from rigorously collecting and analyzing data. Many of the challenges identified in the global study are long standing. The measures it proposes must be tied to business outcomes: the impact on customer service. the increase in staff loyalty and so on. the support of a specific new growth area. We believe that a number of areas such as workforce analytics. HR needs to focus on delivering unique talent solutions tailored to each company’s circumstances and requirements. HR needs time to do its work – the required antidote is a relentless focus on identifying ways of adding value to the rest of the business. Indeed. and proactively meeting the needs of HR’s customers. HR has to break out of the trap it has been stuck in for far too long. But this is not just about employing the latest technologies or tools. is a key tool in enabling HR to shape the organisation’s people resources to deliver on its underlying corporate strategy. the reduction in costs.Conclusion Rethinking Human Resources in a Changing World has provided us with a fresh view of the path ahead for leaders of the HR function. Unfortunately. and using the same “language”. HR must develop a deep understanding of the business – in the same way. It is about the HR function using an empirical approach to deliver a unique and differentiated people management strategy that is closely aligned with the company’s goals – and in the process of doing so. commissioned by KPMG International. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . no generic approaches or best practices that will suddenly enable the HR function to become more effective and respected. For many HR functions.

The Right Talent Development Strategy for Top Talents? BY KEN LEE. DIRECTOR. KPMG MALAYSIA 39 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .

But developing talents poorly – and things soon start going off key.Introduction Your organisation is unique. Your top talents are those quality people who are your next generation of leaders. When it comes to assessing potential. Two sets of illustrative components used to assess talents are: Performance Potential VALUE + TRACK RECORD + ABILITY + AMBITION + ENGAGEMENT Performance Management Process Talent Management Process For each of these criteria above. then. Nevertheless historical performance alone is not enough to predict future success. and the organisation will be singing in harmony. Your talent strategy for your organisation – depends largely on how well you’re able to develop your top talents differently so that you will continue to win in your markets. it is It is universally recognized that potential is a difficult thing to objectively assess. how well an organisation develops its talent can make or break its business. and engagement. critically important to the future success of your business. This view has evolved over time. What follows are several ideas to help guide you through this process and find a compelling approach on “How best to develop your top talents with the right talent development strategy”. 40 On assessing performance. Who are your Top talents and why are they different from everybody else? Since the publication of McKinsey’s seminal study on “War for Talent” in 1998. ability. One approach to identify top talent is based on their performance and potential. Why. organisations (traditionally HR practitioners) will need to support the business by asking further questions and by pushing them to provide specific examples. coaching and inspiring others to be ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . many organisations to take the stand that managing talents is similar to managing their human capital. and so is the mix of talent you need to deliver your business strategy. They are also known as the “Emerging Leaders” a term used to explain the strategic importance of leaders who are committed to role modeling. Developed well. a typical approach is to look at performance ratings and the track record of consistently delivering high performance. Some of the valuable prompts used to assess potential include key questions related to ambition. do so many organisations continue to take a generic ‘best practice’ approach to one of their most important strategic levers: how best to develop their top talents? Do you develop your top talents the same way as you develop the broader employee population? Or should you take a unique and “out-of-the-box” approach? After all. What remains clear is that views on“potential” is somewhat a generally acceptable word associated to talent.” assessed” and “measured” countless times and approaches and definitions for talent spotting are many. “Talents” have been “studied”.

While many organisations may adopt a different approach to develop people along with their unique competencies. Provide real opportunity to experience first hand negotiation with a substantial stake with key target clients. a critical talent pool. They are provided with different career paths and development strategies. studies have indicated that it provides them with the ability to make an impact and maximize contribution to the firm. Some stretch ideas: • Negotiation. taking responsibility for driving forward account management activity. This will not only build greater breadth in the required leadership skill sets but inspire the key talents to extend their bandwidth as industry recognized leaders in their market place. Below are some examples of stretch experiences that are aimed at ensuring top talents get a wide variety of experience as they work towards becoming the next generation of leaders. leading successful pitches. The following example is a combination of experiences which have been structured around ‘what’ top talents typically perform in their role. many of organisations maximize the contribution of talent people by providing them with stretch experiences to allow them to make a difference. Play an active role on a strategic Key Client Account.have indicated through their feedback that stretch experiences have given them the transformational skills and experience to add the most value to their development and progress in their careers. Experience winning new work based on personal relationships developed. many organisations have begun this process of developing their top talents in their early stage of their careers. “A” performers. What is the best development model? A preferred developmental strategy for nurturing top talents is to provide them with adequate stretch experiences. marketing initiatives lead and long term relationship development. For the top talents. As top talents are the top 5%. • Cross selling. bids and converting new relationships into clients for your organisation and leading and contributing to a variety of sales. prepare them to meet client challenges and the career hurdles ahead. this example is only intended to be a generic one which will help provide some ideas which you can take away:. Draw on a wide internal network to facilitate introductions to clients that lead to cross ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . • Evidence of winning work. is that increasingly. This has been a proven strategy for organisations that are committed to invest on developing their next generation of leaders.the best they can be. • Involvement in a significant pitch/bid/proposal. Many organisations continue to place strong emphasis on high-potential employees. Establish their own profile/brand in the market to generate a pipeline of future sales • On a Key Account for a key client. These stretching experiences have been identified by many successful Leaders and professionals . Play a key role because of your specialist technical or sector knowledge. They are your top 5% and differ clearly from the rest of the 95%. 41 Business Development & Sales Your ability to spot and convert business opportunities for your organisation is key to your future success – growing accounts. The stretch should help top talents develop skills that help set them apart from the broader employee population. A differentiated developmental track makes them feel valued as an Emerging leader and this goes a long way in terms of retaining them. Benefits of having a different developmental strategy for your top talents One of the direct benefits of developing your talents differently is that it will enhance your ability to retain top talents. What we have also found in recent years.

Some stretch ideas: • Significant responsibility for profitability & financial performance. Responsible for client delivery teams from across functions. • Leads large or complex accounts. A wide variety of responsibilities are crucial. making use of the latest technology and communication tools to effectively meet the client’s needs. beyond the initial scope of the work. or contributes to. Assume a mentoring role for people in a different part of the business • Delivers training or acts as a Development Centre observer. as well as maintaining direct and senior communication with key stakeholders. • Resource planning. Has been responsible for building team morale. taking it to market in an innovative way. deciding interviewer in graduate or experienced hire recruitment. resulting in a win or positive client feedback and strong sustainable relationships. Act as. managing conflicting priorities and delivery approaches to deliver a seamless and top quality service to the client. Some stretch ideas: • Manage complex and/or multiple teams and projects. Supports the Firm’s and/or their function’s strategy. • Leads cross functional teams. Responsible for leading delivery teams on large and/or complex accounts. integrating different cultures. evaluating performance and resolving difficult situations with the team or client. Contributes to longer term resource planning discussions and acts as the final. Maintained and invested in developing relationships with clients • Evidence of leading a major pitch.function sales or invitations to tender. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . our leader’s skills in both managing and leading teams are critical. the resource planner for a department. Personally responsible for a change in the go to market approach in their area. Managing & Leading People As we work with people. team and individual performance. • Lead a multi-national and/or virtual team. being accountable for the deliverable. Has a client portfolio of a size expected by country and function. • Team growth and recruitment. and most importantly to inspire and engage our people to create a high performance culture. by facilitating ‘Engagement’ or ’Cascade’ sessions or senior level business planning meetings. • Develop a new business area. expectations and delivery styles. whilst also being responsible for client management (stakeholder management. shaping a new proposition. ensuring you are able to manage. Play a primary role in guiding a client through a crisis or major change. Manage. or advise. Lead a complex. etc) and team management (workflow management. across a number of complicated projects or workstreams. Is responsible for. eg acquisition. responsible for identifying and recruiting the necessary internal expertise. teams and the use of internal experts. Lead a large or complex team with members from different countries. Co-delivers training on non technical areas to junior colleagues or observes Development or Assessment Centres for Managers or Senior Managers • Strategy and communication. team financial performance of sizable client portfolios • Advise a client through a crisis. PR crisis or major restructure programme. value proposition or marketing approach. balancing conflicting priorities and stakeholders within tight limitations. packaging offering in a different way – that has resulted in new leads and wins for your organisation. • Mentoring. 42 Leading Client Delivery Being able to demonstrate excellence in a variety of client delivery scenarios is essential for your reputation and your organisation. communication. etc). high value and/or highly competitive major pitch with minimal support from Leadership.

experience and networks that can’t be gained through research and conversations. The Corporate Executive Board through its Learning & Development Roundtable approach. These development activities are aimed at creating the greatest impact on performance. which meets the following criteria: Secondment to: a client. a non-government organisation etc. to operate with a one organisation mindset and to develop broad networks. eg through delivery methods. building a new network and client base. Executive Assistant to a member of the Board or Executive. gains a depth of knowledge. serve as a sounding board for difficult challenges Practice a new skill: Learn a new skill . which has added value and been well received by the client. at a senior level. or long term. project outcome. Complete an approved “out of the box” experience.• Innovation. Learn from them Obtain feedback: Ask direct reports to provide feedback on your greatest strengths and areas for improvement. or with a client. • Strategic project. communication etc. Some stretch ideas: • Time in another function. a Regulatory Body or Industry Body. eg off shoring or restructuring. Cross-Function Experience & Mobility Gaining experience in other functions. or Government departments. delivering work not directly aligned to original skill set. • Relocation. challenging work situations that push one beyond his/her comfort zone Connecting to other key Leaders: work with different. At the core of this approach is “high impact development activities”. Spend 6 months or more in another function at Manager level or above. account or project management. Project support to one of the core Enabling Projects. Take on significant responsibility on a project of strategic importance for the organisation. Spend 12 months or more on secondment to another country (preferably at a senior grade and to a strategic or culturally different location). • Time on international assignment. Apply innovative approaches & skills to work. practice it & obtain feedback 43 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . Relocate to other offices or functions permanently. designed a portfolio of skills and work experiences top talents need for future leadership roles. Immersing yourself in another area of our business. • ‘Out of the box’ secondment. Some of these activities include: Stretch & challenge : Career advancing job assignments. “difficult” and “demanding” leaders. countries and organisations helps you to spot opportunities to add value to your clients.

HO CHUK FONG & ASSISTANT PROF. DR. UNIVERSITY MALAYSIA OF COMPUTER SCIENCE & ENGINEERING (UNIMY) 44 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . VEE VOON YEE.Closing the Demand-Supply Gap in ICT Talents BY ASSISTANT PROF. DR.

45 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . the Ministry of Higher Education (MoHE) revealed that the ICT industry would need an estimated 22. Recently. even worse. MSC Malaysia marked our entry into the software and services segments of the ICT industry. but also a qualitative one. the divide between the supply and demand of ICT talents became not only a quantitative. Over time. the ICT industry is seen as a critical agent of change for national transformation. The shortage in human capital has been the perennial bug bear of the ICT industry. solving this conundrum remains arguably our most urgent imperative if the nation is to keep pace with the developed world and other fast-emerging economies. This has mainly been due to the lack of relevant and practical computing knowledge among graduates.Malaysia is facing a shortage of talents in Information and Communication Technologies (ICT) industries. eventually leading to frustration and a sense of disillusionment that damaged the appeal of ICT programmes among new undergraduates. contributing almost 10% to GDP as reported by Datuk Badlisham Ghazali. The idea was to provide an assembly line of graduates who could fill vacancies that were opening up in multinational corporations as well as locally-incorporated small and medium-sized ICT vendors. the CEO of Multimedia Development Corporation (MDeC) at the MOSTI-PIKOM Leadership Summit 2012. This shortfall in the supply of ICT talents has obvious and serious implications on Malaysia’s hopes of becoming an innovation-led economy and digital nation.000 professionals by 2020 while also noting that the existing IHLs in the country could only supply some 10.000 in the preceding years. ICT contributes in raising productivity and output in other industries as well as the government machinery and public domain. followed in due time by the establishment of full-blown ICT faculties. In response. After all. Many information technology graduates were unable to secure their preferred jobs. As we head into a future of increasing digital assimilation and global integration. A long-standing problem in quantity and quality It is fair to say that the gap in home-grown ICT professionals opened up the very same day we launched the Multimedia Super Corridor. complementing and supporting the existing manufacturing sub-sector for computer hardware. Institutes of Higher Learning (IHLs) began introducing new courses in computer and ICT studies. falling by the wayside. many of the graduates have not been meeting the requirements of the industries. Additionally. This setback was further compounded by the somewhat unbalanced emphasis within the tertiary education curricula on information technology rather than the more durable discipline of computer science and software engineering. in the process. with some efforts to address the issue falling short of expectations and others. However. Deputy Education Minister Datuk Dr Wee Ka Siong said in 2011.

First. to ensure its integrity. the top university in Australia. Autodesk and EC-Council plus local agencies Multimedia Development Corporation (MDeC). Besides. the response from industry players has been encouraging. It is viewed as the nation’s first boutique university focusing on the fundamentals of computer studies rather than the more transient knowledge and skills of other information technology related disciplines. raising the prospect of guaranteed employment for these graduates. IBM. Upon completion. the gap between the demand and supply of ICT talents remains considerable. the syllabus conforms to standards of the Association for Computing Machinery (ACM) and Institute of Electrical and Electronics Engineers (IEEE) Software Engineering Body of Knowledge (SWEBOK). Many have agreed to adopt and absorb students through training placements. EC-Council. As we head towards 2020. It is likely that they perceive UniMy as the potential solution to an old and growing problem. which comprises a year for Foundation studies. Dell. Another feature that sets UniMy apart from other IHLs is its unique ‘1+3+1’ programme. But at least we now have a light at the end of the tunnel. A three-year PhD programme is also available. UniMy also offers 13 professional certification courses to students where they are allowed to choose any four according to their preferences.It was clear that the status quo would not be in a position to meet this requirement. It is for this reason that the Government had no hesitation to award a full-fledged university licence to Prestariang Berhad. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . Already. Kumpulan Modal Perdana and NanoMalaysia. A new boutique university for computer studies Known as a solutions provider in ICT training. Second. Prestariang launched the University Malaysia of Computer Science & Engineering (UniMy) early this year. the programmes will be audited yearly by Melbourne School of Engineering at The University of Melbourne. 46 In order to improve the marketability and employability of UniMy graduates. ORACLE. Huawei. to ensure that its graduates are equipped with the knowledge and skills sets matching those the industry needs. which is built around the following three strategic computer domains: • Computer Engineering • Computer Science • Software Engineering The university is on track to receive its first batch of students in July and has targeted a maximum enrolment of 600 for 2013 for both its foundation and undergraduate programmes. Cyberview Sdn Bhd. these certificates will be issued by international professional bodies including Microsoft. all students have to undergo a six-month industrial attachment with UniMy’s global partners including Microsoft. CompTIA and Adobe. three years for the undergraduate studies and one year for Master’s studies. UniMy has incorporated several elements into its undergraduate programmes. This is reflected in the disciplines it offers. sustainability and relevance.

5% as announced in the Budget 2013. Nevertheless.5-5. 47 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .The turnover rate is also expected to be higher in the beginning of the year as many choose to switch jobs after receiving bonuses. most employers are also selective in their hiring to ensure they get high-performance employees to meet the competitive global work environment. according to the feedback given in the survey.The positive job outlook from the survey for Q1 is mainly attributed to the strong economic growth with forecasts of the economy expanding by a margin of 4.

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Design. the National ICT Association of Malaysia.my PIKOM. Since its inception in 1986. as well as international organisations. In this regard. PIKOM takes on the responsibility to publish ICT-relevant information in a periodic manner. Phileo Damansara II No.Persatuan Industri Komputer Multimedia Malaysia (The National ICT Association of Malaysia) 1106 & 1107. It has become an ICT referral centre for government and industry players.15. Block B. 46350 Petaling Jaya Selangor Darul Ehsan T +: (603) 7955 2922 F +: (603) 7955 2933 E+: info@pikom. production and printing by: MJLAIKC INFOWORKS | Tel: 6012 5050862 | E: mjlaikc@gmail. It is the largest association representing information and communications technology (ICT) players in Malaysia. is a not-for-profit organisation. PIKOM has come of its age as the voice of ICT industry.my W+: www.pikom.com . Jalan 16/11.org.org.

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