JUNE 2013



ICT Job Market Outlook in Malaysia June 2013

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Wisma JobStreet.com, 27, Lorong Medan Tuanku 1, (off Jalan Sultan Ismail), 50300 Kuala Lumpur, Malaysia T: +(603) 2176 0493 (DL); F: +(603) 2698 7200 W: www.jobstreet.com E: marketing-kl@jobstreet.com

KPMG Malaysia, Level 10, KPMG Tower, 8, First Avenue, Bandar Utama, 47800 Petaling Jaya T: +(603) 7721 3656; F: +(603) 7721 3399 W: www.kpmg.com.my ISSN No: 2180-267X Release date: June, 2013 Editor-in-Chief: Ramachandran Ramasamy, Head of Policy, Capability and Research, PIKOM Contributor: Dominic Wong, Senior Marketing Manager – Malaysia, JobStreet.com Reviewed by: Woon Tai Hai, Executive Director, KPMG Malaysia DISCLAIMER This publication contains 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.

COPYRIGHT Copyright © 2013. All rights reserved. No part of this publication may be produced or transmitted in any form or any means, electronic, mechanical, photocopying or otherwise, including recording or the use of any information storage and retrieval system without prior written permission from PIKOM.

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


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

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

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

The main objective of this report is to provide data and information on the following:i.com Employee Confidence Index (JECI) • Anticipated Hiring Activities • Top 10 Specialisations Sought • Position Level Sought 7 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . Perception by Job Seekers and Employers • Jobstreet. 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. Top 10 Specialisations Sought v. Average Monthly Salaries of ICT Professionals by Key ICT Industry Segments • ICT Hardware • ICT Software • Call Centre iv. 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. Regional Benchmarking with Selected Asian Economies vi. including Civil Engineering • Consulting.

business applications and soft skills categories. the oil and gas sector continued to be one of the attractive sectors for ICT professionals. registering an increase of 8.44 times in 2011 to 5. Specifically.com on a regular basis. The report also carries information on the perception of job seekers and potential employers. C++. which essentially highlighted how many times higher or lower the salaries are compared with other regional markets. Thailand. Under business applications. Such trends are considered unhealthy for the ICT industry where the employment market has been tight over a number of years and. 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.784. the industry will continue to face problems in retaining its younger staff from job hopping in search of higher remuneration.It is pertinent to note that the average monthly salary of ICT professionals for 2012 was RM6.6% respectively in 2012.7% from RM6. The study also interestingly revealed that male ICT professionals earn. The demand for both the technical and business applications jobs are attributed to prolific growth experienced in cloud computing and mobile applications. For instance. 9.90 times (with PPP adjusted) higher than the data reported for Malaysians in this report. once again the reporting is done in terms of scaling numbers. India. Among Asian countries. as such.75 times higher than of those who work in smaller cities like Ipoh or Kuching. Such disparity is likely to continue in accentuating youth migration to cities that are already overcrowded. SharePoint and Web Application Developers are highly sought after. The data also showed that big companies tend to pay as high as 1.1%. Singapore.88 times more than those in the small and micro categories which have less than 10 employees. the report also provides data for five English speaking nations namely United States. the regional salary data took into consideration the Purchasing Power Parity (PPP) factor. Similarly. 34% higher salary than their female counterparts. Canada. Like in the previous years. It is also observed that the salary gap between the Senior Managers and the fresh graduates has widened from 5. In terms of geographical locations. United Kingdom. where the salary was 1.76 times (without PPP adjustments) higher or 1. those in ICT Project Management tend to earn significantly higher salary than those in the technical or engineering fields. New Zealand and Australia that typically attract Malaysians for employment. the Philippines and Indonesia. C#. The record also showed that the ICT professionals in the Senior Manager. the study discovered that the typical salaries of ICT professionals in major cities like Kuala Lumpur and Cyberjaya is 1. Middle Manager and Senior Executive categories experienced significant pay rise of 14.700. Besides publishing average annual salaries earned by ICT professionals in seven Asian countries. namely Hong Kong.53 times (without PPP adjustments) higher than their counterparts in Malaysia in 2012. especially those in the junior categories. on average. dotNet. Australia and USA topped the list among the English speaking destinations. Generally the job seekers and providers indicated a positive outlook for Malaysia in 2013. Among the various types of job functions investigated. ICT professionals equipped with Java. In the technical domain. 8 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . in particular pertaining to economic performance and ICT job market outlook as gauged by Jobstreet. in 2012 a typical ICT Project Manager earned an average monthly salary of RM9.90 times (with PPP adjusted) higher or 2.240 the previous year. For making meaningful comparisons. Hong Kong once again topped the salary scale. ICT professionals in Australia netted 3.9% and 9. Hot ICT jobs varied across technical.71 times in 2012. China. which is almost twice of that earned by a Junior Software Engineer or 50% more than that of a Senior Software Engineer. Instead of just publishing the average annual salaries.

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

Malaysia’s economic growth predictions for 2013 vary widely among private financial institutions. ii. international agencies and research institutions.5 9. steady and positive growth in the various economic sectors.0% respectively.1 5.3 8. 2013.0 9. PIKOM is optimistic and concurs with MIER’s prediction of 5. which were much higher compared to other private institutions.9 8.2% in 2012.2 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 -1.2 7. v. Pre Global Financial Crisis 2009: 5. The Government of Malaysia has projected an economic growth of between 4. strong domestic demand arising from economic transformation programmes and on-going mega projects.8 10. especially in the Information Communications Technology Services (ICTS). Although Malaysia’s growth rate was lower than expected at 4. 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 2013.6% p.5% and 5. However. vi. low inflation rate. sustained private and public consumption and expenditure.2% respectively.5% in 2013 (Figure 1).8% and 5. Specifically.1 5.a.6%.5% and 5. The resilience in the Malaysian economy is poised to continue in 2013 and can be attributed to the following factors:i. Projected to grow by 5.7%. and viii.8 5.0 9.5 5.9 9. the Malaysian Institute of Economic Research (MIER) has predicted continuity of resilience in the Malaysian economy in 2013 with a growth rate of 5. which is significantly lower than MIER. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 20 13 .6%.1% in Q1.5% p.9 6. iv. the economy is expected to rebound with economic improvement in the US and positive growth in China.5 5. The predictions made by International Monetary Fund (IMF).8 5.4 5.a.2% p. increased export earnings owing to strengthening of Ringgit Malaysia against US dollars. 12 10 8 6 4 2 0 9.7 -7. Asian Development Bank (ADB) and World Bank (WB) were 4.5 4. in 2013 by Economic Report 10 -10 Figure 1: Malaysia’s GDP Growth (%): 1990-2013 However. 4. low unemployment rate.8 0. stable overnight lending rates stimulating business investments.The Malaysian economy grew at an average rate of 5. iii. citing the effect on the export market by the continuing global economic slowdown as the key reason for the lower forecast.8 6.a. India and ASEAN countries.4 Pre Asian Financial Crisis 1997: 9. higher economic growth forecasts for China.3 6. vii.7 6. The economic growth predictions made by Royal Bank of Scotland and the Overseas Chinese Banking Corporations (OCBC) were 5.

ingrained with technological capabilities. productivity.Nonetheless. To name a few. iii. The ICTS segment is poised to reach the mark of RM61.7 billion in 2013 by registering another annual growth rate of 12%. Petronas Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang. The new additional segments constitute about 11% of the total ICTS sector contribution in terms of value added services.4% to 6. programming and broadcasting and information services as additional items. 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. unless the Government achieves the target through revenue-increasing measures or operational cost reduction strategies. vi. the Malaysian economy is not totally free from economic encumbrances and faces a number of investment related risk factors such as:i. In tandem. it is imperative and crucial to ensure a familiarity of policies and regulations now that GE13 is done and dusted. vii. 13th General Election: Typically. during the post-election period the Government takes cognizance and reminds the public of its pledges and promises. Tun Razak Exchange. Capital flight: Massive capital outflow arising from volatile foreign exchange rates is also bound to hurt export and import earnings. Buluh. 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.3% by increasing its value added services from RM12.3%. iv. Reducing fiscal deficit: Poor management on the part of the Government in its ambitious task in reducing the fiscal deficit from 5. quality and competitive edge best practices.1 billion in 2012 (Figure 2). v. Bandar Malaysia at Sungei Besi as well as the various economic corridors ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . From a business perspective. 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. ii. The ICTS segment grew at a Compound Annual Growth Rate (CAGR) of 13.4% of GDP in 2011 to 3% in 2015 may dampen public expenditure and investments. almost doubling during the period of 2001-2012. the ICTS segment in Malaysia is projected to register significant growth in 2013. video and television programme. the share of ICTS in the national Gross Domestic Product (GDP) increased from 3. External environment: Risk aversion strategy among potential investors due to globalisation and market liberalization phenomena. The Government should also review policies that may have run their course as this will garner wider public support and boost investor confidence. Traditionally. the ICT intensive big projects include My Rapid Transit (MRT) linking Kajang and Sg. Macro policy environment: Any slacking in the delivery of economic transformation initiatives. 11 ICT Industry Outlook As it was in the past. mega projects and geographically defined corridor projects. telecommunications and computer services constitute the ICTS segments as per Malaysian Standard Industry Classification 2000 (MSIC2000). River of Life.3 billion in 2001 to RM55. The introduction of MSIC2008 saw the inclusion of publishing services. and therefore tends to implement developmental projects. motion picture. innovation culture. R&D capabilities.

particularly smart phones and tablets. people need not be in the office to complete their tasks.1 37 22 24. Cloud computing. ICT is poised to increases the process efficiency and product and services delivery effectiveness. which are deployed in a variety of industries to serve customers better by culling out insights and predictions that the data can generate. the country is migrating into its next phase of inflection point by creating a digital innovation economy through the Digital Malaysia Programme (DMP).3 13. With such a work culture. Having gone through two decades of new age experiences and exposures.7 55. 80 (RM Billion) Value in Ringgit Malaysia 70 60 50 40 30 20 10 61. In 2013. East Coast Economic Region (ECER).– Iskandar Malaysia. Big data analytics. they can do their work from the train or bus on their daily commute. ii.1 43. The four key trends are: i. such changes were succinctly harnessed through the MSC Malaysia initiative that saw its introduction in the mid-nineties. As a socio-economic enabler and key driver of businesses. organise and store large amounts of data without investing heavily on hardware and software tools.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.7 14.2 18. risk analysis and/or data supported decision making processes.4 27. Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCORE). helps companies to structure. youth. More importantly. The process can help to improve the profitability of the company by assessing credit worthiness. company employees always remain connected with the help of smartphones and tablets. which in turn. Northern Corridor Economic Region (NCER). From a private sector lens. viewing from a public policy perspective. has evolved to be more than a mere collection of technological tools. 12 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . In the early stages of information age.1 12. industry pundits are projecting at least four key trends changing the way in which firms work.8 15. Mobile device usage. women and digital entrepreneurs. ICT’s ubiquity and pervasive features and characteristics are continually impacting the way one works.6 31 48. 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). make customers and clients more mobile and also provides access to companies’ websites. besides teleworking from home. which is one of the fastest growing technological advances. applications and records wherever they happen to be. plays and learns. in its contemporary form. iii. impacts on economic growth.

including its workforce. can be a powerful tool for customer engagement. generally lacks the interest in attaining global standards in process and quality improvement activities. 13 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . though seen as a disruptive and unproductive activity when staff unnecessarily waste time. is half than what it was a decade ago. and a declining interest among young people in ICT jobs that demand long working hours continue to plague the growth of the ICT industry. Quality of ICT Graduates: Quality. Green ICT Certifications have yet to gain a foothold in the Malaysian ICTS landscape.iv. This new age media. and iv. and soliciting feedback. as the figure has been lingering around 25. networking. However. helped to redress some of the talent gaps in the ICT sector. an offspring of the Internet age. information sharing. especially in comparison to regional countries.000 per year. which. 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. ii. rampant job-hopping for better terms of employment. Supply of ICT Graduates: As it was in the recent past. ICT enrolment in both public and private institutions has stagnated.5% are equipped with the People Capability Maturity Model (PCMM) certification. initiatives by TalentCorp. Despite growing dynamism. iii. Understandably. competency and employability of ICT graduates in meeting the industry’s demands continue to remain a critical issue. as well as branding products and services. The ICT enrolment in the public universities has not improved much. Despite the long established presence of some multi-nationals. 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. or to solicit ICT contracts from developed economies like USA. with budget constraints. Social media. the country still has weak links in the global R&D and innovation network. 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. ICT enrolment in private universities also has not improved very much and averages around 50. the nation’s ICT sector continues to face several persistent challenges: i. Research.000 per year over the past three years. these endeavours are yet to be realised. attract and facilitate global talent and build networks of top talent. relationship building. Low remuneration. Quality and Competency Standards of Human Capital in ICT Firms: The ICT industry. 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. notably. Being new. 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 initiatives are carried out via three strategic thrusts: optimise Malaysian talent. which was established in January 2011.

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

This increase was well above the average inflation rate of 3.7% from RM6.151 3. registered significant increase in the average salary in 2012. which is considered as a significant rise from RM2.7% 4.039 5.9 Overall 2010 2011 2012 Percentage Change (%) 2.514 5. The fresh graduates are.7 Senior Executive: (> 5 Years Working Experience) 4. 15 By Job Category Junior Executive: (1-4 Years Working Experience) 2.521 9.238 2.Job Category Overall The average monthly salary of an ICT professional in Malaysia in 2012 was RM6.206 1. netting a monthly salary of RM2. followed by senior management (9.837 8.238 in the preceding year .9% 8.446 2007 4.1%.784 6.36 3.784 (Figure 3).240 in 2011.184 8.387 6.7 7. on average. Given the optimistic outlook of the economy and other positive factors within the ICT industry.00 1.1 5.82 5. except Junior Executive.50 3.784 2013 7.71 Table 1 : Average Salary of ICT Professionals by Job Category: 2010-2012 Source: Jobstret. PIKOM anticipates an 8.6% in 2012.784 8.946 14.7 Benchmarking Against Average Monthly Salary of Fresh Graduates 2011 2012 1.343 4.699 2009 5.387 Figure 3: Average Salary of ICT Professionals: 2006-2013 Source: Jobstret. 8000 Average Monthly Salary (Ringgit Malaysia) 7500 7000 6500 6000 5500 5000 4500 4000 Average Monthly Salary 7.626 2011 6.6 Year Fresh Graduates: (Entry Level) Middle Management: (Manager) Senior Management: (Senior Manager) 10.240 5. This represents an increase of 8.387 per month.184 2006 4.240 2012 6.446 2008 4.240 6.206 in 2012.795 12.374 9. to a figure no less than RM7.37 2.005 7. 2013 By Job Category and Years of Working Experience It can be seen from Table 1 that all ICT job categories.151 in 2011 to RM3.9% rise in the average salary of ICT professionals in 2013. Junior executives received only a raise of 1. resulting in a comfortable living for ICT professionals in Malaysia.25 2.com and PIKOM.7% where their average monthly salary increased from RM3.936 3.343.276 4.41 1.6%).00 1.626 5.166 13.9%) and senior executive category (9. 2013 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .2% in 2011 and 1.44 5.626 6.276 2010 5.com and PIKOM.699 4. ICT professionals in the middle management level received the highest average rate of pay rise of 14.

the Oil and Gas industry registered a signifi cant rise in the monthly salary for fresh graduates from RM2.1 12.700 1.288 2.023 2.425 2.331 2.715 2.775 2.5 6.000 2.200 2.4 6.000 1.0 9.82 while for Senior Executives it were 2.8 0.000 2. Industry Category Table 2 and Table 3 show the average monthly salary of ICT professionals by industry.418 2.25 and 2.200 3. However.6 2.8 3.4 0.500 2.From Table 1.975 2. which is an increase from RM2.983 2.280 2.343 in 2012.0 7. Similarly. Industry (Central Malaysia) Fresh Graduates / Entry Level (Less than 1 year working experience) Percentiles (Ringgit Malaysia) 25th 50th 2.300 2. recording the highest percentage increase of 14.800 2. indicating a widening disparity in the salary structure.600 1.4 13.325 1.225 2.4 -1.950 2.400 1. This is followed by the Electrical and Electronics industry where the average salary for fresh graduates increased by 13.500 3.9 4.500 3.450 2.700 2.500 0.0 5.280 1.000 1.4 2.800 2.800 2.275 1.500 3. it can also be observed that Senior Managers earned 5.900 1.350 3.280 2.508 2.000 2.418 in 2011 to RM2.280 for fresh graduates in 2012 but had not changed since 2011. 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 2012.063 2. industries like Automotive and Heavy Industry.400 2. Manufacturing.800 2. ICT graduates in the Construction and Building industry also experienced a significant increase of 12.284 1.7 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.275 2.000 1.000 1.063 in 2011 to RM2.670 2.280 2.800 2.350 2. 2013 Fresh graduates by Industry Table 2 shows that the Semiconductor and Wafer Fabrication industries paid the highest monthly salary of RM3.800 2.36.2 0.230 1.238 % 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 1.0 2.030 2.800 2.500 2.508 2.500 2.350 2.200 2.600 1.800 3.com and PIKOM. Storage.750 2. Transport.8%.800 2.600 2. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .300 2.000 2.775 in 2012.950 75th 2.120 2.300 2.275 2.4% in their salary.775 2300 2500 3280 2115 2150 2250 1925 2343 1925 3280 2011 2.800 2. the figures for Middle Manager level were 3.540 2.800 3.500 1.8 1.44 times higher than fresh graduates in 2011 and 5.800 2.175 2.0 0.800 2.150 2.175 2.50 and 3.71 times higher in 2012.0 14.5%.368 2.300 Weighted Mean 2012 2.000 2.225 2.213 2.5 2.700 2.225 2.225 2.310 2.300 2.300 1.343 2. Besides Semiconductor and Wafer Fabrication.

700 3.000 10.200 2.200 8.500 4.100 3.800 8.000 3.201 4.100 5119 5.700 3.033 1.100 4.600 3.000 Hotel/Restaurant/Food Service - Manufacturing 11.400 3.030 3.350 3.500 Telecommunication 11.521 4.400 6.000 10.000 4.183 9.000 2.000 12.000 17.699 3.000 15.625 10.170 6.226 3.396 7.300 7.100 9.400 10.600 4.045 13.050 9.500 5.321 12.000 6.500 5.202 3.365 7.000 15. 2013 .000 10.700 8.200 6.285 4.500 6.500 17.400 3.000 7.500 6.215 3.070 6.600 Transport/Storage/Freight/Shipping - 8.500 6.500 5.753 Industry (Central Malaysia) 75th 20.000 10.000 4.091 7.700 5.500 Education - 8.200 7.125 17.069 3.000 7.500 10.200 8.400 2.138 5.500 9.675 5.500 5.100 7.075 2.300 7.000 Geometric Mean (GM): (Ringgit Malaysia) Minimum (Ringgit Malaysia) Maximum (Ringgit Malaysia) Table 3 : Average Monthly Salary of ICT Professionals by Industry.000 8.996 3.374 8.800 17.625 14.900 6.206 2.753 3.250 6.500 5.504 5.460 14.100 7.468 2.400 2.175 11.200 8.000 5.600 3.575 3.600 3.879 4.000 3.300 5.420 5.000 8.200 4.800 Bank - 10.000 7.000 7.775 7.575 3.800 21.000 Printing/Publishing - Property/Real Estate - Science & Technology/Aerospace/ BioTechnology - 9.500 Computer/IT (Software) - 8.600 13.500 7.750 2.000 8730 5.500 6.400 5.660 3.244 9.800 4.119 3.300 6.225 5.600 11.250 15.305 3.000 3.000 8.320 9.200 4.000 8.000 6.500 4.600 4.400 21.833 8.650 8.157 3.950 4.605 5.960 3.200 6.800 3.346 7.800 11.Senior Management (Senior Manager) Weighted Mean 25th 7.160 4.950 3.300 5.500 15.158 3.966 4.213 6.000 3.950 3.500 2.100 3.000 10.237 3.500 9.000 5700 6.961 14.500 6.000 13.500 2.693 8.000 7.500 2.500 6.100 3.500 5.800 8.00 Construction/Building - Consulting (Business/Technical) 8.500 4.500 6.400 3.345 4.000 8.680 15.000 Call Centre/IT-Enabled Services - Chemical - Computer/IT (Hardware) 15.500 9.000 Electrical & Electronics - Financial Services/Securities/Insurance - 10.100 2.000 13.700 2.600 3.000 8.116 5.215 3.150 16.300 4.016 5.000 17.363 8.800 19.313 12.800 5.600 7.175 13.100 2.063 2.000 12.630 7.000 6.575 4.154 7.000 5.500 3.900 2.300 3.338 4.283 2.200 4.298 7.600 7.450 4.275 5.800 8.810 3.610 5.000 7.800 3.000 8.575 3.107 4.375 11.500 2.500 19.475 2.750 3.700 8.200 3.000 6.563 3.750 3.961 17.475 3.600 2.100 4.521 13.800 5.500 10.402 3.975 8.045 13.350 20.500 4.500 50th 75th 25th 50th 75th 25th 50th 75th 2.925 13865 12. 2012 Source: Jobstret.091 4.000 3.730 10.000 8.900 8.500 5.429 14.563 5.785 11.000 9.300 3.857 7.575 3.989 Semiconductor/Wafer Fabrication - Services 13.500 5.600 5.050 2.200 3.000 11.400 4.000 13.500 4.600 15.150 5.100 5.200 8.000 5.835 5.300 3.700 6.625 4.750 5.000 6.228 3.388 3.494 4.100 3.425 3.190 10.500 6.600 3.500 6.com and PIKOM.500 8.000 Oil/Gas/Petroleum - 14.200 2.400 5.575 3.000 Utilities - Wholesale/Retail/Trading 10.600 11.800 7.000 8.946 6.085 16.200 3.000 2.801 5.125 13.438 13.000 8.700 5.500 2.225 3.000 10.800 3.750 2.100 4.000 14.438 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 2.800 5.400 9.500 4.000 3.600 6.010 2.050 5.825 6.300 3.200 3.500 3.000 8.350 20.500 17.700 Percentiles (Ringgit Malaysia) 25th - 50th Agriculture/Plantations/Aquaculture - Automotive/Heavy Industry/Machinery 7.500 3.154 5.000 16.959 8.200 6.675 2.577 4.300 6.

313 13.1 4.388 3.100 10.0 0.4 1.104 5.2 3.8 5.0 7.091 7.087 5.2 6.7 14.0 9.610 5.905 -17.800 5.339 9.400 4.300 7.119 3.1 9.4 2.983 6.489 5.031 5.750 5.0 4.160 4.8 0.200 17.6 17.8 7.4 3.600 4.936 5.063 2.475 20.244 9.3 0.8 38.228 3.3 10.835 5.961 14.091 8.900 1.075 3.888 7.305 3.748 6.0 4.019 4.9 10.259 6.000 8.879 4.7 3.928 3.099 6.666 6.1 2.6 6.263 14.125 0.552 2.4 0.092 4.8 3.6 7.925 0.2 3.961 17.9 29.837 10.300 3.300 5.537 7.675 2.069 3.125 13.800 5.950 14.050 5.175 13.946 8.157 3.316 8.7 Table 4 :Comparison of Average Monthly Salary of ICT Professionals by Industry.374 13.500 5.5 2.151 1.887 17.923 6.964 4.0 1.0 0.8 7.4 9.563 3.450 4.4 0.459 7.504 6.289 5.0 6.226 3.175 11.575 4.7 2.959 8.2 14.8 3.675 5.3 1.4 3.950 3.967 7.575 8.575 3.841 6.8 7.801 5.0 22.100 3.2 3.0 9.473 4.7 1.175 7.150 16.028 4.0 9.848 3.020 3.7 4.475 3.700 1.865 12.417 4.600 7.183 9.105 12.682 6.313 12.com and PIKOM.175 12.550 4.5 11.699 3.1 3.825 6.2 3.575 6.258 4.575 7.800 8.100 4.0 2.963 14.929 9.150 5.013 4.890 6.521 13.0 0.5 0.6 0.204 4.800 11.750 7.989 5.769 5.2 6.100 3.601 8.4 6.563 3.4 11.753 3.541 6.800 5.0 7.525 2.475 2.150 4.1 7.250 36.525 4.215 3.225 0.1 2.039 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 9.494 7.760 6.9 7.215 3.742 6.152 5.500 5.693 8.625 6.710 4.7 6.400 10.100 5.107 4.0 2.113 3.3 0.9 10.240 8.575 7200 8.244 9.436 4.405 - - 3.496 9.375 11.6 6.258 14.Industry (Central Malaysia) 2012 17.100 5.516 1.2 6.000 3.170 9.213 6.3 4.3 4.500 4.201 4.9 3.206 ALL JOB CATEGORIES 2011 % change 2012 2011 % change - - 3.3 6. 2013 .784 6.8 6.146 13.0 4.1 8.500 4.556 6.601 4.524 6.119 5.4 3.0 5.8 6.436 0.0 5.625 7.034 6.4 0.608 1.925 6.166 16.7 6.563 5.8 3.400 2.925 4. 2011 and 2012 Source: Jobstret.002 3.680 15.154 5.7 2.801 5.500 8.0 32.523 2.9 7.261 4.369 10.680 15.250 4.4 2.298 7.725 4.8 9.100 14.0 4.8 3.400 2.2 5.803 6.0 8.000 8.365 12.4 0.025 1.193 5.0 0.6 1.6 5.521 5.9 0.7 5.762 3.283 2.7 3.225 5.4 2.575 3.225 11.345 10.000 0.340 9.925 13.0 8.0 3.6 0.276 3.438 13.4 8.2 7.425 3.084 0.833 8.395 4.794 11.350 7.500 4.033 2011 % change 2012 2011 2012 % change 2011 4.953 4.2 6.095 2.285 7.6 Junior Executive (1-4 working experience) 2012 2.1 3.2 0.8 3.237 8.157 5.168 41.

the Automotive. which is an increase from RM10. Heavy Industry and Machinery.2%.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) 7.289 7.879 Junior Executive (1-4 working experience) 5.500 5.183 10.215 3.091 was reported in the Electrical and Electronics industry.753 per month.438 in 2012.339 in 2011 to RM10.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.475 Fresh Graduates 3.6%) in the monthly salary from RM7.400 16. Heavy Industry and Machinery industry registered the highest pay rise of 14. 2013 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . 2012 Source: Jobstret. the Semiconductor and Wafer fabrication industry offered the highest salary of RM3.775 2. which is an increase from RM3.150 13. the Science & Technology. Further scrutiny revealed that in the Middle Management category.280 7.500. Construction and Building and Chemical industries where the pay could also be equally high.450 2.504 10.316 7.034 Senior Management (Senior Manager) 17.091 11.961 . Discounting the sectors lacking data. No data was reported for Semiconductor and Wafer Fabrication. 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 8.099 7.500 2.259 7. Table 4 also shows that ICT professionals in the Senior Management category working in the Financial Services industry received the highest salary increment of 36.175 9.563 in 2012.425 19 Table 5 : Top Five Paying Industries by Job Category.8% and 29. Heavy Industry and Machinery as well as the Computer Hardware industries were the top-paying ones in the senior management category.653 3.250 to RM13.9% in the Junior Executive category. The Automobile. 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. Table 3 shows that the Automobile.280 2. the maximum monthly salary of RM14.521 14.175 in 2012. on overall. In the Senior Executive category.100 in 2011 to RM3. In the senior executive level. For the junior executive level.com and PIKOM.8% respectively.563 3. Aerospace and Bio-technology industries recorded the highest pay rise of 32.438 17.675 6.107 6. the Oil and Gas industry reported the highest monthly salary of RM7. Science & Technology.675 3. In the middle management level. where the maximum monthly salary recorded was RM17. the Services and Science & Technology. Aerospace and Biotechnology industry reported the highest percentage of change (38.961 Middle Management (Manager) 14. Comparison Between 2011 and 2012 by industry Table 4 shows that.

ICT Senior Managers in the ICT Call Centres/ IT Enabled services and ICT Software categories also registered significant rise in their salary.0% and 6.867 10.129 ICT Senior Executive 3. 9.044 12.129 3.6%. The salary increment experienced by all ICT job categories except the Senior Manager category was not very encouraging.837 4. ICT software and ICT-enabled services including call centres.082 6000 3000 0 ICT Junior Executive 2008 2009 2010 2011 2012 2.044 Figure 4: Average Monthly Salary of ICT Professionals by ICT Industry Segments Source: Jobstret. the results showed that the Oil. except in the Senior Management level for which the salary remained stagnant between 2011 and 2012. Jobstreet. Aerospace and Bio-technology industry which constituted as one of the top five paying industries for all the job categories. 2013 Within the Senior Manager category. The worst hit were ICT Junior Executives who received only a 1.533 ICT Senior Manager 8. in 2012 Senior Managers in the ICT sector experienced an average pay rise of 11.417 4. a jump from RM14. which is an increase from RM12. ICT hardware professionals netted the highest pay increase of 20. ICT Industry Segments For the purpose of compiling salary records. By Job Category Figure 4 shows the average salaries of ICT professionals by job category within the ICT industry.689 2.322 4.2%.Table 5 shows the top five paying industries for each ICT job category. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .588 14.797 3.681 4.957 7. Gas and Petroleum industry dominated the list in all the categories.475 in 2011 to RM17.778 4.440 2.082 3.533 7.0% respectively.975 9.588 in 2011 to RM14.778 3.912 ICT Middle Manager 5.044.5% pay rise on an average between 2011 and 2012 (see also Table 6).876 12.322 7.938 5.400 in 2012 (Table 6).com had categorised the ICT industry segments into ICT hardware. It is followed by Science & Technology. 15000 14. On the contrary. Of the 25 industries covered in the investigation.061 4.912 4.588 Average Salary in Ringgit Malaysia 12000 9000 20 7.com and PIKOM.

519 9.051 8. As in the previous year.735 Middle Management: (Manager) 8.130 4.300 3.769 4.930 6.797 3.646 7.800 1.428 4.720 3.600 6.767 2.0 ICT Industry 8.925 3.3 ICT Industry 3.082 3.263 7.8 Call Centre/ICT Enabled Services 3.3 ICT Software 2.063 1.779 15.533 2. ICT User Industries and ICT Producer Industries Source: Jobstret.4 ICT Senior Executive ICT Software 3.3 Call Centre/ICT Enabled Services 2.8 2008 2009 2010 2011 2012 % change 2011-2012 ICT Middle Manager Year ICT Hardware 5.044 11.995 5.778 4.325 2.250 10.000 10.681 4.052 6.350 12. which is marginally higher than their counterparts in the User industry where the average was only RM5.500 2.6 2008 2009 2010 2011 2012 % change 2011-2012 Table 6: Average Monthly Salary by Job Category and ICT Industry Segment Source: Jobstret.216 3.625 6. The 2012 data revealed that ICT professionals in the Producer industry on the overall earned an average monthly salary of RM6.3 Call Centre/ICT Enabled Services 6.869 4.567 10.002 3. 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.837 4.236 ICT User Industries ICT Producer Industries Figure 5: Average Monthly Salary of ICT Professionals by Job Category.538 4.957 7.100 3. 2013 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .437 Junior Executive: (1-4 Years Working Experiance) 3.975 9.408 5.924 3.575 4.com and PIKOM.758 13.440 2.749 4.689 2.548 8.557 2.019 5.1 ICT Industry 5. 16000 14000 12000 10000 8000 6000 4000 2000 0 21 Ringgit Malaysia Senior Management: (Senior Manager) 13.ICT Executive Year ICT Hardware 2.400 20.912 2.320 4.019 9.939 6.718 6.190 4.588 14.225 3.225 0. there is no distinct difference in salaries earned by ICT professionals in these two segments.354 Senior Executive: (> 5 Year Working Experience) 5.355.061 4.475 17.129 1.018 7.417 4.903.160 2.322 7.364 13.750 3.700 11.075 5.556 4.025 3.400 4.5 ICT Hardware 3.405 10.2 ICT Senior Manager ICT Software 8.9 ICT Hardware 7.com and PIKOM.876 12.998 9.835 1.500 2.900 14.475 8.748 2.750 4.0 Call Centre/ICT Enabled Services 10.3 ICT Software 5.971 9.505 5.0 ICT Industry 2.

419 2.417 1. who tend to net as high as RM7. on an average. Being a highly specialized job.021 6.500. HTML.00 1.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. As shown in Figure 6.com/research/ ) and PIKOM ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .667 4.692 monthly. Web designers earned the lowest monthly salary.417 2.773 Minimum Monthly Salary 4. 2012 Source: (http://www. Microsoft Certified Professional (MCP) and Cisco) Software Developer/Programmer (Java.638 4.SQL) HTML.244 2. Microsoft Certified Professional (MCP) and Cisco) Database/System Administrators (Microsoft and Cisco Certified) AutoCAD: Civil Engineering Software Engineer (Java.31 2.000 7.638 per month.167 7. netted RM6.39 5. which is 50% higher than the earnings of Software Engineers.242 7. netted the highest earnings compared to other ICT job functions.692 Median Monthly Salary 7. the median salary of those have more than 20 years of working experience earned 5.042 2. Project Manager (Java.000 10. Median Salary (Ringgit Malaysia) / Benchmarking Scale 12000 10000 8000 6000 4000 2000 0 Less than 1 Year 1-4 5-9 10-19 1.616 11.917 7.Selected Key ICT Job Functions The average monthly salary earned by key ICT professionals is shown in Table 7.317 4.917 per month only.SQL. HTML.100 7.019 7.647 6.288 3.22 more than those who have less than one year of working experience.833 3.783 monthly and the experienced ones can net as high as RM10.778 3.567 4.917 Job Functions Information Technology.250 3.667 11. which is almost two times higher than software engineers. among the listed jobs. Web Designer Table 7: Average Monthly Salary of ICT Professionals by Job Function 2012 Source: (http://www.997 3.000 per month. HTML. SQL or MCP certified.867 5.432 2.22 20 year or more Median Salary (RM) 2.500 2.542 and the experienced ones netted as high as RM 16. whether they are Java. Mean Monthly Salary 9.542 7.583 Maximum Monthly Salary 17. Microsoft Certified Professional) SAP Consultants Information Technology Consultants (Java. IT Project Managers can net an average monthly salary as high as RM17. It can be seen from this table that ICT professionals in the managerial category.24 3.667. the average monthly salary earned by SAP Consultants in 2012 was RM8. the Senior Software Engineer.783 4.PayScale.167 2.967 6.SQL) 22 Programmer/Analyst (Java.333 11. On an average AutoCAD engineers were paid RM4.717 Figure 6: Median Monthly Salary of ICT Professionals and Benchmarking Scale by Years of Experience. HTML.783 4.973 4.PayScale.700 8.327 3.935 5.000 6.417 2.667 10.667 3. As expected.667 13. HTML and MCP) Senior Database/ System Administrators (Microsoft and Cisco Certified) Senior Executive Engineer (Java.500 16. HTML.SQL.SQL. an average of just RM3. HTML.

805 5. the salary data interestingly revealed that male ICT professionals tend to earn a median salary of RM5.Employment Size Employment size matters in determining the average monthly salary of employees.27 1.19 1. 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. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .493 4.com/research/ ) and PIKOM Geographical Location As shown in Figure 8.com/research/ ) and PIKOM Gender Despite gender equality.60 1-9 10-49 50-199 200-599 600-1999 More than 2000 6. Median Salary (Ringgit Malaysia) / Benchmarking Scale 8000 7000 6000 5000 4000 3000 2000 1000 0 1.00 1.75 1. 23 Median Salary (Ringgit Malaysia) / Benchmarking Scale 6000 5000 4000 3000 2000 1000 0 1. large corporations or multinationals (MNCs) tend to pay higher than smaller ones.00 Kuala Lumpur 5.03 1. As shown in Figure 7.982 Ipoh 2.855.88 times more.092 Cyberjaya 5. which is taken as the baseline.03 1. Even within the Klang Valley.201 while females earned a median salary of only RM3.88 1.42 1.75 times higher than their counter parts working in smaller locations like Ipoh.499 Shah Alam 3.022 Johore 3.024 Petaling Jaya 4. 2011 Source: (http://www.PayScale. ICT professionals working in Kuala Lumpur and Cyberjaya tend to earn 1.363 Median Salary (RM) 3.20 1.390 3.906 Median Salary (RM) Figure 8: Average Monthly Salary of ICT Professionals by Geographic Locations.73 1. the disparity in the salary is quite distinct.321 4.000 employees was 1.426 Figure 7: Median Monthly Salary of ICT Professionals and Benchmarking Scale by Employment Size. which work out to a 35% difference. the median salary paid by companies with more than 2. 2012 Source: (http://www. Comparing against the smallest sized companies in the 1-9 employees category.38 1.472 Kuching 2.PayScale.

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. the demand for soft-skilled professionals especially in project management. Irrespective of technological evolutions. Though demand for certified professionals in SAP or ERP are at an all time high. especially in fending off malware makers and cyber thieves. C++. Within the Business Applications domain. software developers. the demand for ICT professionals also vary greatly.201 3.855 134. Specifically. Being an open platform and the ability to speak to any back end system. Certified Network/ System Engineers Certified Database Administrators 24 TECHNICAL C# Java C++ .Gender Male Female (Male salary / Female Salary) Median Salary (RM) 5.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.com/research/ ) and PIKOM Hot ICT Jobs Hot ICT jobs depend on the area of applications. large organisations in particular need Java programmers to transfer data from legacy systems. 2012 Source: (http://www. demand for mobile application developers and user interface designers who can develop user friendly and versatile applications are also on the rise. in the technical domain. as depicted in Figure 9. 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. Big Data Analytics is also a fast growing job area. consulting.com ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . organisations shifting towards cloud computing are spurring the need for infrastructure professionals. .9 Table 8: Gender Disparity in ICT Salary in Malaysia. SharePoint and Web Application Development are highly sought after. especially in big companies desiring to extract insights from their petabytes of stored data. programmers and engineers equipped with knowledge of Java C#. In addition.PayScale. process and quality improvements is ever present.Net. Similarly. professionals specializing in IT audit and IT security are proliferating.

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

00 2.45 2. Two types of benchmarking scales were published.95 0.20 times more than in Malaysia respectively.44 1.41 2.90 2.52 3.08 4.05 0.43 1.10 2.25 1. Comparatively.35 0. which takes into account for inflation and foreign exchange rates as well as standard of living. 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. Malaysia assumes a scaling factor of one. the scaling factor is only 1.72 1.68 1.86 3. the results showed that more advanced Asian economies.15 1. Besides these two countries.54 0.10 254 0.06 1.53 0.87 1.36 0.74 1.PayScale.39 1.36 and 1.36 0.22 0.57 1.26 1.59 3.55 1.24 Benchmarking Scale: Malaysia= 1.91 0.51 3.96 2.25 2. the scaling factors for Singapore and China lowered to 1.39 1.16 2. All measurements are tallied in US dollars. The median data published by PayScale for the year 2012 was used.06 0. Surprisingly.59 0. Here.48 1. ambitious job seekers should use PPP adjusted figures when searching for overseas jobs. company size and years of working experience.72 1. Indeed.87.11 1. For the purpose of this benchmarking exercise.95 2.Table 9 shows a comparative analysis of the remuneration earned by ICT professionals in selected Asian and English speaking countries.35 0.49 0.49 1.59 0.74 1.84 and 1. which is significantly lower than the nonPPP adjusted scaling depicted earlier. However.70 1.90. The average value for each country is compiled after taking into consideration three variables.66 0.87 0.05 2.73 2.62 2.00 (Atlias Method) Malaysia Singapore Thailand India China Phillipines Vietnam Hong Kong Indonesia United Kingdom Canada New Zealand Australia USA 1.00 1.45 0.66 2.08 Table 9: Benchmarking Salaries Earned by ICT Professionals of Selected Countries and Malaysia.68 1.06 0.45 1. giving rise to a scaling factor that is free from bias caused by foreign exchange fluctuation.00 (Purchasing Power Parity (PPP) Adjusted) 1.47 1.00 2.60 1.60 1.67 3. average remuneration earned by each country is compared against Malaysia.17 1. With PPP adjustment.40 1.57 1.90 0.56 1.61 1. India and Philippines offer lower remunerations to their ICT professionals.73 2.63 1.79 2.31 2.44 1.87.69 0.24 1.63 respectively.71 1.25 to 2. 2012 Source: (http://www. 1. namely IT skills.84 1. Similarly.42 2.00 1.38 1.00 2. recorded average remunerations that were 2.com/research/ ) and PIKOM ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . in particular Hong Kong and Singapore.00 2. Thailand and Vietnam offer higher remunerations for ICT professionals.23 1.00 2.20 2. China. indicating a much more attractive nation in Asia for talent migration. offering 1. Indonesia.76 3.74 3.89 0.41 2.50 1.79 2.66 1. the result showed that Hong Kong still ranked the highest paying nation in Asia for ICT professionals.00 1.54 times more than the average remuneration earned by Malaysian ICT professionals in 2012 (Table 9).47 1.84 1.31 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=1.56 1.63 0.44 0.08 3.85 1. Vietnam recorded a higher scaling value of 1.25 3.47 1.46 2. Comparison Against Asian Countries Without any PPP adjustment.75 3. technically speaking.80 1.

Atlas Method PPP Adjusted 0.51 without PPP adjustment to 1. 1.5 3.0 0. 3. But.51 1.0 1.76 and 3.com/research/ ) and PIKOM ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 USA 3. 2012 Source: (http://www.90 3.0 2.0 1. becomes a crucial consideration factor for potential job seekers before making any decision on job related migrations. 6 36 1.84 2.Malaysians are typically known to search for better opportunities beyond the shores of Asia. 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. 4.PayScale. it can be seen that the cost of living and foreign exchange fluctuations have significant impact on the salaries earned and thus. 3. Hong Kong Australia 1.49 0.90 Figure 10: Benchmarking Salaries Earned by ICT Professionals in Malaysia and Selected Countries. in particular United States of America.00 1.08 and 1. 2.72 suggested otherwise. Phillipines Indonesia Malaysia India Thailand United Kingdom China Canada Singapore New Zealand 1. that is. Canada with its 3. 3 1.44 0. 2. 9 66 1. Despite the distance. UK’s scaling factor reducing from 2. 53 3. 1.00 1. 86 51 2.0 76 05 3.05 scaling factor also appeared as an attractive destination for ICT jobseekers but the PPP adjusted value reducing to 1.08 2. 2.84 1. 1. Canada.5 1. 1.72 2. 63 47 0. 4 0. The distant lands that become attractive destinations for Malaysians are mostly English speaking countries. the USA becomes a higher paying destination than Australia.5 0. 0 1. . Moreover. 27 . 4 44 0 0. Vietnam 20 1.86 1.26 1. United Kingdom. Australia and New Zealand.87 2.5 90 90 87 84 72 84 87 1. Without PPP adjustments.24 times more respectively without PPP adjustments than what a typical ICT professional in Malaysia can earn. 08 24 3. 26 2.63 3.73 0.44 0.24 2. 2.90 times respectively.53 1.36 2. Figure 10 shows that the Australian and USA job markets offer the highest remuneration.47 PPP adjusted does not suggest it to be a very attractive destination as an ICT job market. These destinations are no exceptions for ICT Professionals as well. especially software developers and networking engineers who are in demand at all times globally. these countries have long diplomatic and trade ties with Malaysia.66 1.47 1. 0 00 1. 4 0. taking into considerations of PPP adjustments. Similarly.36 1.73 56 0.05 1.76 1.20 1. Indeed.87 1.56 0.

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

6 46. which is compiled on a monthly basis.2 49.9 30.0 53.6 in 2011 to 48.9 50.2 47. the JECI has significantly dropped from 51.7 34.8 48.6 51.4 2010 47.com Confidence Index (JECI) The JobStreet. A low index shows a tough job market situation where employment seekers find it difficult to get a job.This report also attempts to present the overall ICT job market outlook from an industry’s perspective and from the perception of potential jobseekers.7 48.3 49. A total of 227 JobStreet.7 49.9 35.0 2004 41.9 2003 36.7 51.8 2002 31. JECI ranges from zero (very poor) to 100 (very good).8 in 2012.8 46.2 36.7 52.7 50.7 48. Month JAN FEB MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC 2013 49.9 43.6 50.0 49.6 30 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 48.7 49.1 33.9 53.9 48.0 28.8 49.0 50.2 31.January 2013 Source: Jobstreet.1 2012 50.0 34.7 49.2 31.4 47. is shown in Table 10.5 54.com Employment Confidence Index (JECI).7 42.3 48.0 41.9 48.9 49.7 36.3 42.com 60 51.6 51.8 51.5 45.0 51.1 50.8 41.8 49. A high index indicates a comfortable job market.2 49.6 2006 49.com and PIKOM ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .5 50.6 47.9 50.0 39.1 37.5 29 Table 10: Job Employment Confidence Index: January 2001. As shown in Figure 11.0 50.6 39.6 49.4 49.6 49.7 48.5 32.8 35.2 50.9 50.7 34.2 51.9 37.3 49.3 41.1 42.6 49.1 49.2 2008 50.9 61.1 50.7 50.7 34.9 32.1 51.4 43. indicating increasing confidence in the local job market.4 51.4 40.1 49.4 48.2 48.4 51.5 37.6 2001 42.2 48.1 34.8 2012 2013 Figure 11: Job Employment Confidence Index: 2001-Jan 2013 Source: Jobstreet.7 35.1 50 JECI Index 45.5 32.6 47.0 41.1 2011 52.5 49.3 50.5 34.2 53.8 48. JobStreet.8 47.1 50.7 51.6 46.1 49.2 34.9 47.3 50.0 36.8 50.7 49.1 50.7 48.2 31.4 31.7 2009 44.6 52.com clients.4 48.7 32. managers and senior managers across various industries in Malaysia participated in this survey conducted in February 2013.6 48.1 32.3 2007 52.6 47.6 31.8 44.7 49.8 51.0 49.3 51.8 40 36.6 49. where people are able to secure a good job easily.9 47.0 48.5 51.5 31.0 32.9 2005 47.2 52.7 34.1 43.2 51.1 52. before it shot up slightly in January 2013.2 50.4 43.5 39.7 45.5 48.

69 in 2011. 3 for “We’re maintaining our hiring rate this year” 2 for “Hiring less.Anticipated Hiring Activities for the next 12 month According to the JobStreet. The result is shown in Figure 13. 1 for “We’re not hiring in the foreseeable future” As such. For comparing the job hiring sentiments over the years. as follows:4 for “We’re expanding and hence hiring more people”. Less than 5% of respondents acknowledged that they would not be hiring in the foreseeable future. the new hiring is to be mainly in the areas of sales. the expected average for the worst case scenario. as such. The JHIS revealed that the index came down to 2. and manufacturing. would be 1.com Hiring Prospects: For the First Quarter (Q1) of 2013. Malaysian employers have a brighter job outlook for their hiring initiatives. Source: PIKOM ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . ∑ fi =1. which is likely given the positive economic outlook.0% 25% 42% 43% Figure 12: Hiring Activities Outlook. “f” denotes the frequency expressed as percentage of responses netted or implicitly weighted. 50 40 30 20 10 0 We're expanding.com Job Outlook Report. similarly. marketing. PIKOM used the Job Hiring Index Score (JHIS) procedure as outlined in the Box below. where all the responses indicative of “much worse”. “W” denotes the values assigned for each response category and “i” denotes the industry. PIKOM calculated a Job Hiring Index Score (JHIS) using the following procedure: I=∑ fi Wi / ∑ fi In the formula above. which indirectly reflects a positive job outlook for Q1 of 2013. However.62 in 2012 from 2. the average for the best case scenario where all the respondents indicate “much better” will be 4. the hiring climate is looking positive for the 1st quarter of 2013 (Figure 12). 30 To gauge the overall job hiring sentiments in terms of annual trends. 2012 Source: Jobstreet. replace / fill essential positions only”.0% 4.5. 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. accounting/finance. The values assumed for the various categories of responses were. the expected or implicitly weighted average for JHIS value will be 2. the overall job hiring sentiment is shown to be picking up for the year 2013. a 5-point drop from the 9% in 2012. 36% of the respondents are expecting to increase their hiring in the next 12 months.

Sales.90 2. mechanical engineering and other engineering jobs drew attention of potential employers.75 2.62 Q1:2013 2.80 JHIS 2.85 2.65 2.60 2. Respondents from major industries such as hotel & restaurants. accounting and engineering.69 Q1:2012 2. which ranked either third or fourth positions from 2009 to 2012.86 Figure 13: Job Hiring Index Score 2010-2013 Source: PIKOM Top Specializations Sought As reflected in Table 11. and mechanical engineering.86 2. ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . the top specializations employers seek has changed over the past five years. for most industries jobseekers in sales and marketing are still the most sought after. They are manufacturing. On the contrary. In comparison with the last quarter. three new specializations have entered the top 10 list.62 2.62 2.69 2.55 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. manufacturing.62 Q1:2011 2. followed by those with expertise in manufacturing.2. finance computer and IT. mining (oil & gas) reported that they would most likely experience a better job growth in the next 12 month.50 Q1:2010 JHIS 2. did not get into the top ten specializations employers seek for the year 2013. engineering.70 2. marketing and business development jobs are consistently ranked among the top most sought after jobs. Interestingly Computer & IT (Software). 2012 -2013 As mapped out in Table 12. Customer service category is also seen sliding down the top ten.

CEO. Only 13% of the respondents are looking for fresh graduates. such as accountants and engineers (Figure 14).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. 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. Human resource managers in many industries expressed difficulties in hiring fresh graduates as many candidates without working experiences are demanding a high salary.GM) 0% 10% 0. Managerial levels and above might be experiencing a more difficult period as only 11% of the respondents are looking to fill such positions. 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.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 . 32 Fresh graduate Junior level (less than 4 years experiance) Supervisor / Specialist Manager / Assistant Manager Director / Vice President Top Management (President.


000. 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. These “big three” challenges and other key findings were derived from a global study by the Economist Intelligence Unit between May & June 2012. The Global study of 418 executives comprised with more than one-third (37 percent) of respondents who identified themselves as C-level executives. including manufacturing and energy & natural resources (both at 12 percent). North America (28 percent) and Latin America (10 percent). hiring and identifying talent globally while retaining important local insights 2. No one expects this focus on costs to change in the short to medium term. 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. cost reduction. the remaining 47 percent have between 1. The “big three” challenges to HR’s new growth agenda are: 1. flexible workforce.000 and 10. but not necessarily more effective.000 employees. More than one-half of respondents (58 percent) primarily serve an HR function.. aptly entitled. financial services. commissioned by KPMG International. balancing the global and the local – managing. there has been a preoccupation with cost optimisation. 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. “Rethinking Human Resources in a Changing World” examines the nature of the challenges facing the HR function and its future direction. more flexible workforce. all things ‘cost’. The global workforce has become increasingly integrated across borders while simultaneously growing more virtual and flexible. 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 . sustainable cost management.Introduction In the last 5 years. This has required HR to play its part. The global study. IT. A wide range of industries is represented. Europe (30 percent). and healthcare & pharmaceuticals (all at 11 percent). Survey respondents expect little change in the next 3 years.. the remainder (42 percent) represents a wide range of other functions. with the remainder being at the management level up to senior vice-president. largely through making the HR function more efficient. managing a flexible and virtual workforce – but not at the cost of loyalty and career development 3.000 employees – 22 percent have over 50. retaining the best talent – maintaining employee engagement in the face of a less committed. The respondents are based in Asia-Pacific (32 percent). More than one-half of the companies surveyed (53 percent) boast more than 10. The report’s main findings include the following: • HR is struggling with the challenges of managing a global.

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

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

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

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

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

and the organisation will be singing in harmony. Developed well. critically important to the future success of your business. Nevertheless historical performance alone is not enough to predict future success. and engagement.Introduction Your organisation is unique. many organisations to take the stand that managing talents is similar to managing their human capital. 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”. organisations (traditionally HR practitioners) will need to support the business by asking further questions and by pushing them to provide specific examples. What remains clear is that views on“potential” is somewhat a generally acceptable word associated to talent. When it comes to assessing potential. a typical approach is to look at performance ratings and the track record of consistently delivering high 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. One approach to identify top talent is based on their performance and potential.” assessed” and “measured” countless times and approaches and definitions for talent spotting are many. But developing talents poorly – and things soon start going off key. 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. 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. 40 On assessing performance. ability. 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. Why. and so is the mix of talent you need to deliver your business strategy. This view has evolved over time. Your top talents are those quality people who are your next generation of leaders. 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. Some of the valuable prompts used to assess potential include key questions related to ambition. coaching and inspiring others to be ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . They are also known as the “Emerging Leaders” a term used to explain the strategic importance of leaders who are committed to role modeling. then. “Talents” have been “studied”.

They are provided with different career paths and development strategies. many of organisations maximize the contribution of talent people by providing them with stretch experiences to allow them to make a difference. many organisations have begun this process of developing their top talents in their early stage of their careers. 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. a critical talent pool. What we have also found in recent years.the best they can be. leading successful pitches. this example is only intended to be a generic one which will help provide some ideas which you can take away:. Play an active role on a strategic Key Client Account. These stretching experiences have been identified by many successful Leaders and professionals . 41 Business Development & Sales Your ability to spot and convert business opportunities for your organisation is key to your future success – growing accounts. As top talents are the top 5%. Experience winning new work based on personal relationships developed. Draw on a wide internal network to facilitate introductions to clients that lead to cross ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . Many organisations continue to place strong emphasis on high-potential employees. Provide real opportunity to experience first hand negotiation with a substantial stake with key target clients. marketing initiatives lead and long term relationship development. “A” performers. • Involvement in a significant pitch/bid/proposal. 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. The following example is a combination of experiences which have been structured around ‘what’ top talents typically perform in their role. While many organisations may adopt a different approach to develop people along with their unique competencies. studies have indicated that it provides them with the ability to make an impact and maximize contribution to the firm. A differentiated developmental track makes them feel valued as an Emerging leader and this goes a long way in terms of retaining them. Some stretch ideas: • Negotiation. They are your top 5% and differ clearly from the rest of the 95%. This has been a proven strategy for organisations that are committed to invest on developing their next generation of leaders. taking responsibility for driving forward account management activity. Establish their own profile/brand in the market to generate a pipeline of future sales • On a Key Account for a key client. • Evidence of winning work.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. 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. bids and converting new relationships into clients for your organisation and leading and contributing to a variety of sales. Play a key role because of your specialist technical or sector knowledge. prepare them to meet client challenges and the career hurdles ahead. For the top talents. is that increasingly. What is the best development model? A preferred developmental strategy for nurturing top talents is to provide them with adequate stretch experiences. • Cross selling. The stretch should help top talents develop skills that help set them apart from the broader employee population.

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

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


followed in due time by the establishment of full-blown ICT faculties. MSC Malaysia marked our entry into the software and services segments of the ICT industry. 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. 45 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 . After all. Recently.000 in the preceding years. complementing and supporting the existing manufacturing sub-sector for computer hardware. 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. However. contributing almost 10% to GDP as reported by Datuk Badlisham Ghazali. in the process. Institutes of Higher Learning (IHLs) began introducing new courses in computer and ICT studies. Deputy Education Minister Datuk Dr Wee Ka Siong said in 2011. The shortage in human capital has been the perennial bug bear of the ICT industry. many of the graduates have not been meeting the requirements of the industries. even worse. 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. Additionally. the CEO of Multimedia Development Corporation (MDeC) at the MOSTI-PIKOM Leadership Summit 2012. eventually leading to frustration and a sense of disillusionment that damaged the appeal of ICT programmes among new undergraduates. 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. the divide between the supply and demand of ICT talents became not only a quantitative.000 professionals by 2020 while also noting that the existing IHLs in the country could only supply some 10.Malaysia is facing a shortage of talents in Information and Communication Technologies (ICT) industries. the Ministry of Higher Education (MoHE) revealed that the ICT industry would need an estimated 22. In response. falling by the wayside. Over time. 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. This has mainly been due to the lack of relevant and practical computing knowledge among graduates. ICT contributes in raising productivity and output in other industries as well as the government machinery and public domain. the ICT industry is seen as a critical agent of change for national transformation. with some efforts to address the issue falling short of expectations and others. Many information technology graduates were unable to secure their preferred jobs. but also a qualitative one. As we head into a future of increasing digital assimilation and global integration.

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

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 4.5% as announced in the Budget 2013. according to the feedback given in the survey. most employers are also selective in their hiring to ensure they get high-performance employees to meet the competitive global work environment. Nevertheless.5-5.The turnover rate is also expected to be higher in the beginning of the year as many choose to switch jobs after receiving bonuses. 47 ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013 .



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

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