Machinery &

Equipment
Productivity Nexus
- Working Group 1
Briefing
22 July 2019
Table of Contents

1. Machinery & Equipment Productivity Nexus Initiatives

2. Machinery & Equipment Environmental Scan

3. Priority Projects by Working Group 1

4. Conclusion and Next Steps

The M&E Productivity Nexus was launched in November 2017 with
4 Sectoral Initiatives to address 3 categories of challenges

1 2 3
Challenges

INDUSTRY
WORKFORCE TECHNOLOGY STRUCTURE

1 2 3 4
Sectoral Initiatives

Set up partnership Set up Centre of Set up more product Update of domestic

between government Excellence for skilled testing facilities to product standards to
and industry professionals to share ensure standards be at par with
associations to up-skill industry expertise and are met international standards
existing employees develop new and enforce
technologies compliance
Group
Work

Talent and Productivity and SME Empowerment Ecosystem (Policies

W1 Manpower W2 Efficiency W3 and Development W4 & Procedures)

During the Machinery & Equipment Productivity Nexus meeting held on Sep 2018, the committee finalized 4
working groups tasked to address issues in their respective focus areas

Source: Malaysia Productivity Blueprint (2017)

M&E Productivity Nexus Governance Structure

National Productivity Council (NPC)

MPC Delivery Management Office

Chairman: Mr. Mac Ngan Boon (MEIF) Secretariat

Machinery & Equipment
Governing Committee: Associations / Industry
Productivity Nexus
Players / Government
Initiatives
Sectoral

Set up partnership between Set up Centre of Excellence for Set up more product testing Update of domestic product
government and industry skilled professionals to share facilities to ensure standards standards to be at par with
associations to up-skill industry expertise and develop are met international standards and
existing employees new technologies enforce compliance

Workgroup 2: Productivity Workgroup 3:

Workgroup 1: Talent and Workgroup 4: Ecosystem
Workgroups (Monthly)

and Efficiency SME Empowerment and

Manpower (Policies & Procedures)
Development
Workgroup Chairman: Workgroup Chairman: Workgroup Chairman: Workgroup Chairman:
Mr Tiong Khe Hock (MATA) Mr Yue Khin Meng (MSTMA) Dato’ Michael Kang (SMEAM) Mr Siew Choon Thye (TEEAM)

Subject Matter Expert: Subject Matter Expert: Subject Matter Expert: Subject Matter Expert:
Mr Chan Chee Tatt (MEMA) Mr Yoong Kee Sin (MEIF) Mr Ricky Soo KC (MEMA) Mr N. Sangaran (MEIF)
Table of Contents

1. Machinery & Equipment Productivity Nexus Scope

2. Machinery & Equipment Environmental Scan

3. Priority Projects by Working Group 1

4. Conclusion and Next Steps

ILMIA studies state that there are huge talent supply gaps in the M&E
sector, and highlighted the need for more stakeholder collaborations
Top 10 reasons for difficulties in
Top Skills Gaps of Entry Level Employees
recruitment of Hard to Fill positions

Lack of competencies / technical skills

29% among the talent pool 17% Problem solving skills

15% Small supply pool of talent 13% Ability to work independently

Positions requires very specialized Critical thinking and collaboration skills

13% knowledge 12%

Initiatives to Attract, Develop & Retain

Areas of Collaboration Employees

1. Offer internship to students 1. Offer better salaries compared to industry average

2. Offer apprenticeship program 2. Provide better benefits and incentives for employees

3. Offer graduate recruitment programme 3. Train current employee to fill in the gap

4. Offer part time job to students

Source : ILMIA M& E Environmental Scan 2018

One of the reasons is because there is lack of collaboration between
M&E SMEs with Educational and TVET institutions
Areas of Collaboration with Educational and TVET Institutions (2017)

ESI 44% 35% 5% 5% 2% 9% 1%

M&E 45% 36% 3% 5% 3% 5% 2%

Total 44% 35% 4% 5% 3% 7% 2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Areas of Collaboration with Educational and TVET by Employment Size (2017)

Large 26% 39% 3% 10% 5% 13% 3%

Medium 45% 39% 3% 6% 6%

Small 51% 32% 5% 3% 3% 4% 2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
No collaboration with any educational or TVET institution Note: n = 265, Small-sized companies representing 148 responses; Medium sized
Offer internship to students companies representing 93 responses; Large sized companied representing 61
responses.
Offer part-time job to students
Offer apprenticeship program
Provide industry lectures / participate in classroom presentations / participate in discussions about the workplace and caree r opportunities
Offer graduate recruitment program (source potential students for employment even before their graduation)
Review of curriculum / development of training programs

• 44% of SMEs players do not have any form of collaboration with Educational and TVET Institutions (2017)
• The larger SMEs have more collaboration with TVET institutions

ILMIA 2018 - M&E Environmental Scan

Currently, ILMIA analysis states that there is low number of
apprenticeship program being offered by SMEs for training
Areas of Collaboration with Educational and TVET by Employment Size 2017

Large 26% 39% 3% 10% 5% 13% 3%

Medium 45% 39% 3% 6% 6%

Small 51% 32% 5% 3% 3% 4% 2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Note: n = 265, Small-sized companies representing 148 responses; Medium sized
No collaboration with any educational or TVET institution companies representing 93 responses; Large sized companied representing 61
responses.
Offer internship to students

Offer part-time job to students

Offer apprenticeship program

Provide industry lectures / participate in classroom presentations / participate in discussions about the workplace and caree r opportunities

Offer graduate recruitment program (source potential students for employment even before their graduation)

Review of curriculum / development of training programs

• Larger companies have more capacity to build the collaboration with TVET
• Based on the sampling, only 10% of larger companies are providing apprenticeship opportunities to university students,
whilst only 6% of medium and 3% of smaller companies do the same

Source: ILMIA 2018 - M&E Environmental Scan

This may be due to smaller SMEs players not having the
capacity to spend budget for training
• Smaller SMEs allocate less budget for training employees.
• Large companies that allocate more budget on training will have higher leverage to utilize the HRDF levy

Total Training Expenses for Employees by Employment Size (2017) Utilization of Sources of Funding for Training by Sectors (2017)

50.0%
46.0%
Large (>200 43.8%
employees) 9% 27% 64% 45.0% 41.8%
40.0%
35.0% 31.5% 33.3%
Medium (75 to 200 29.9%
employees) 15% 33% 11% 22% 19% 30.0%
25.0%
20.0%
Small (5 to 74
employees) 28% 33% 18% 18% 5% 15.0% 4.6% 4.8%
4.5%
10.0% 6.3%
5.4% 0.8% 3.2% 4.5% 1.5%
0% 20% 40% 60% 80% 100% 5.0%
2.3%
0.0% 1.5%
None Less than RM10k 0.0%
RM 10k to RM 19.9k RM 20k to RM 49.9k Total M&E ESI
RM 50k and above
HRDF - levy
Note: n = 89, representing 39 from M&E and 50 from ESI.

•Percentage of budget allocation is correlated to the size of Company's own funding

the companies Government special fund

•28% of smaller SMEs do not spend expenses on training,
while 33% allocate less than RM 10 thousand HRDF - pool fund (e.g. apprenticeship, 1MalaysiaGRIP, Train and Replace
•64% of larger SMEs spend more than RM50 thousand on Programme)
training in 2017
Note: n = 89, representing 130 responses; 39 M&E, representing 63 responses; 50 ESI, representing 67
responses.
Source: ILMIA 2018 - M&E Environmental Scan
ILMIA 2018 analysis highlighted that the current employers in M&E
will requires upskilling to fill up the top critical industry occupations

Top 5 Critical Occupations (2017 & 2018) Top 10 Critical Occupations for Overall Industry In 2017

This is the top 5 hard to fill positions and the Machinist (8173-09)
1
highest number of vacancies

2 Technician (3112-01)
Engineering Supporting
M&E Industry Industry
3 Assistant Engineers (2142-41)

DG Toolsmith (7221-06)
Technician Machinist 4
(3112-01) (8173-09)
5 Welding Technology, Tool & Die maker (2144-27, 7222-03)
Assistant Engineer Toolsmith
(2142-41) (7221-06) Automation Engineers (2141-01)
6

Machinist Tool & Die Maker 7 Computer Technician (3511-05)

(8173-09) (7222-03)

8 Robotics Technician (3119-20)

Automation Engineer Technologist
(2141-01) (2142-11)
9 Supervisor (3129-04)
Welding Technologist Assistant Engineers
(2144-27) (2142-41) 10 Technologist (2141-11)

Source: ILMIA M&E Environmental Scan 2018

Table of Contents

1. Machinery & Equipment Productivity Nexus Scope

2. Machinery & Equipment Environmental Scan

3. Priority Projects by Working Group 1

4. Conclusion and Next Steps

M&E Productivity Nexus WG1 has identified 4 initiatives through
5 priority projects
1 M&E Talent 2 Industry Driven Apprenticeship Program 4 Web Based
Development M&E Human
Roadmap Existing apprenticeship programs under Capital Portal
SLDN but tailor made for SMEs
Occupation Skills • Industrial Machining A one-stop center
Framework • Welding to bridge the
Consists of: supply and
• Electrical
1. Sectoral Info demand of human
2. Career Path • Mechatronics
• CAD/CAM capital in M&E
3. Skills Category
4. Relevant Trainings industry
3 Upskilling Existing Employees & Trainers

Standard Programs Customized Programs

INSEP programs INDCERT programs
funded by PTPK funded by HRDF
1. KISMEC 1. Overall Equipment
2. NSSDC Effectiveness (OEE)
2. Industry 4.0
Benchmark Technologist
against Singapore
Encourage more industry-driven apprenticeship programmes

Current apprenticeship program under SLDN is not suitable for SMEs who lack
the resources to administer the program to meet the requirements of JPK

MEIF will work with the selected TVET institutions to develop the right
model to suit SMEs in M&E industry

Model Description Models Description

Model 1 • Association administers Model 2 • Consortiums of

the apprenticeship SMEs pooling
Public
programme on behalf of resources to set up
Association institution the participating SME SME
the relevant
members who are apprenticeship
offering placements. program that applies
Apprenticeship SME SME
programme/ • Association can consider NOSS
PusatBertauliah
collaborating with public
institutions to provide
Industry driven training e.g. German- Industry driven
Malaysian Institute
Upskilling existing employees through partnership between industry and TVET
Institutions
Standard Programs Offered by TVET under Industrial Skills Enhancement Program (INSEP)

Course Fees
Fully Funded
by PTPK

Plan to run pilot

programs for 50
companies with some
financial assistance
from MEPN
Upskilling existing employees through partnership between industry and TVET
Institutions
Customized Programs Under Industry Certification (INDCERT) Program

No Training Programs Duration

1 Overall Equipment Effectiveness (OEE) TBA
• OEE theory and concepts Course Fees
• OEE data generation to IoT gateway Fully Funded
• Setting up cloud storage platform by HRDF
• Setting up cloud visualization platform
• Aggregate data for OEE calculations
• Create OEE dashboard
2 Industry 4.0 Technologist TBA
Plan to run pilot
programs for 20
participants from 10
companies with
some financial
assistance from
MEPN
Partnership between Companies, Associations, Agencies,
Training Institutions is essential
The signing of MOU between the parties is just the beginning of many future
collaborations needed to close the talent gaps in the M&E Industry

Employees
Training Center / Industry Association
Academic / Pilot Company
Institution

Nexus
(Seed Fund)
Secretariat Specialist Trainer

• MEIF need to identify specialist trainer for

• MEIF needs to work training institutions to
secure funding from HRDF, PTPK and
other funding agencies
• MPC may provide initial seed funding to
accelerate the initial pilot programs
“Train the Trainer” program
• MEIF need resources to facilitate more
SME employers to participate in the
apprenticeship and upskilling programs
• MPC to provide funding for promotion to
prospective employers
Table of Contents

1. Machinery & Equipment Productivity Nexus Scope

2. Machinery & Equipment Environmental Scan

3. Priority Projects by Working Group 1

4. Conclusion and Next Steps

Summary of Conclusions and Next Steps
Key Conclusions
• Industry perceptions on talent
supply demand gap is consistent
with the formal data issued by
MOHR
• Collaboration between MEIF and
Talent and Manpower
training institutions via industry
driven apprenticeship and
upskilling programs is vital for
industry to bridge the talent supply
demand gap
• Under Industry 4FWRD initiatives,
W1
there is urgent need to accelerate
the upskilling rate to build highly
skilled industry workforce for coming
industry 4th revolution
Next Steps
Need to establish talent roadmap,
framework of apprenticeship and
upskilling with partnership with
training institutions
Need to run pilot programs with 20
to 50 companies to accelerate the
industry driven programs to establish
success cases to attract SME
employers to come on board
Need to develop more customized
industry 4.0 based training
programs to build up skilled
workforce for the Industry 4.0
Thank You