PN. HJH. NORASHIKIN BT. DATUK HAJI ISMAIL ECONOMIC PLANNING UNIT PRIME MINISTER S DEPARTMENT OF MALAYSIA
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1 PRIME MINISTER'S OFFICE PN. HJH. NORASHIKIN BT. DATUK HAJI ISMAIL ECONOMIC PLANNING UNIT PRIME MINISTER S DEPARTMENT OF MALAYSIA Follow us 1
2 CONTENT OVERVIEW
3 01. Labor Market Structure
4 % in Working Age Population (15-64) m 21.7 m 68% in Labour Force Employment by Industry 62% Services 14.7 m 7.0 m 63% 39 yo & below 37% 17% Manufacturing 11% Agriculture 9% Construction 1% Mining & Quarrying 31.7m Population LABOUR MARKET 42% House work 45.7% 15m year m target 14.7m Labour Force 54.3% Labour Force Participation Rate 14.2m Employed 62% 38% 27% 60% 13% High skilled Semi skilled Low skilled 54% 36% 10% Graduate from Higher Education 3.4% Unemployed Employment percentage by gender TVET from Higher Education 500k Avg. school leavers each years 84% Malaysian School 54.2% Youth unemployment Employment percentage by Nationality 16% Non-Malaysian RM1,703 Median Wage Source: EPU analysis based DOSM population and LFS data 5
5 02. Issues and Way Forward
6 1 High Youth Unemployment Age Cohort of Youth Population (in millions) Outside labour force 3.5 Inside labour market 2.6 Total: 6.1 mil % MALE 73% % % Unemployment Rate % Unemployment by Age Group (%) Triple than national unemployment rate % of unemployed youth: Diploma & Degree holders 13.7 Youth Total [ ] Global Youth Unemployment (ILO 2016) World ~ 13.1% Developed Economies ~ 14.5% South East Asia & Pacific ~ 13.0% FEMALE Youth (age 15-24) constitute more than half of unemployment 11% unemployment rate 7
7 2 Quantity Gap in TVET Workforce Uncoordinated governance Lack of recognition for Technologist Net undersupply 0.3Mn 0.7 Mn TVET workforce supplied (2014 to 2020) 1.0 Mn TVET workforce demanded (2014 to 2020) Two accrediting bodies Unclear TVET articulation Lack of industry input in curriculum design Multiple Providers No specialization in public TVET No rating system for performance Technologist not recognised as professionals Wage premium in public and private sector Limited access to Higher Education No centralised database on instructor profile Minimal industry exposure Skills deficiencies TVET ISSUES AND CHALLENGES Fragmented TVET Delivery Competency gaps among Instructors 8
8 3 Participation of Foreign Workers ( 000 person) 2,500 +9% +181% 2, % increase of foreign workers employment since (legal) Lack of comprehensive policy on addressing the issues in holistic manner Issues regarding enforcement estimated higher number of illegal foreign workers 2,000 1,500 2, ,818 1, Sector Participated by Foreign Workers 19% 21% 25% 35% Construction Services Agriculture Manufacturing Improve management of FW employment Centralised administration Middle skills foreign workers (<RM5,000) Clear policy direction Improve levy mechanism Additional levy increase to be used for up-skilling and automation Policy Develop a comprehensive policy and strategies Long term strategy for industry to move from labour to capital incentive Evaluate policy based on industry performance/growth 9
9 VIETNAM THAILAND SINGAPORE MALAYSIA PHILIPPINES INDONESIA 73.3% 61.7% 58.6%* 53.6% 50.5% 50.2%** 4 Woman In The Labour Force Participation DOUBLE PEAKED Issues on professionalism & roles of woman in decision making High enrolment in universities but less in the Labour Market Lack of mobility Involvement in informal sector % % 2.9% 1.2% % Work-life balance Low LFPR for women with high education attainment Low Female LFPR in Malaysia compared to neighbouring countries Source : World Bank (databank.worldbank.org) *Source : Ministry of Manpower, Singapore ** Source : International Labour Organization Incentives for return to work Flexible working hours Career comeback Upskilling and reskilling Increase childcare centre (affordability, quality) Additional initiatives to increase woman participation rate by 59% in 2020 and 67% in Promote work life balance for working mothers Way Forward Increase female participation in top management and decision making level. 10
10 03. Government Initiatives
11 Single Mother Retirees Prisoners / Ex-prisoners Former Drug Addict Indigenous People Homeless Latent Workforce Others Talent bridging & outreach Graduates Structured Internship Industry Academia Collaboration Financial Sector Skim Penggajian Orang Kurang Upaya (SP-OKU) B40 Community Geran Skim Bantuan Galakan Perniagaan Orang Kurang Upaya (SBGP-OKU) Drop-Out Underprivileged Handicap Women Malaysian Government Initiatives on Human Capital Building Foreign Worker Expatriate Micro Credit Retrenchment Entrepreneurship SMEs Training Centre TVET Upskilling Provider National Plan Facilitating SMEs Employment Insurance Scheme Young Entrepreneur Side Income for Housewife Childcare facilities Career Comeback Flexible Work Arrangement Ease of Application Retention High Potential Digital (Crowdsourcing) 12
12 Highlights of the ELEVENTH MALAYSIA PLAN
13 The Eleventh Plan focuses on multi-dimensional goals Multidimensional goals to ensure sustainable and inclusive growth GDP growth at 5-6% per annum Labour productivity increases from RM77,100 (2015) to RM92,300 (2020) GNI per capita at RM54,100 by 2020 Average monthly household income increases from RM6,141 (2014) to RM10,540 (2020) Target for more rapid increase in income for B40 households and narrower gap between income groups Average monthly household income (current price) 25,000 20,000 15,000 10,000 T20 : RM22,240 National Average: RM10,540 Income Group % p.a National T M B M40 : RM9,970 National Median: RM8,420 Compensation of employees to GDP increase from 34.9% (2015) to (2020) 40% Malaysia Wellbeing Index to increase by 1.7% p.a. Economic Planning Unit, Prime Minister s Department, Malaysia 5,000 0 RM2, B40 : RM5,270 Ratio of T20 over B40 income 14
14 Improving labour market efficiency to accelerate economic growth 3.7 % 40 % RM 2,500 Monthly median wage in 2020 Strategic Thrust 3 Accelerating human capital development for an advanced nation Main strategies and selected outcomes Labour productivity growth rate per annum Compensation of employees to GDP in 2020 Improving the quality of education for better student outcomes and institutional excellence TOP universities in Top 100 of the QS World University Rankings 225, % Student enrolment from preschool to upper secondary Game Changer Enabling industry-led Technical and Vocational Education and Training (TVET) 60% of the 1.5 million jobs that will be created during the Eleventh Plan will require TVET-related skills Transforming TVET to meet industry demand 225,000 Intake of SPM leavers to TVET programmes Strengthening lifelong learning for skills enhancement 58 % Increase in number of employees that will benefit from expansion of the HRDF act Economic Planning Unit, Prime Minister s Department, Malaysia 15
15 04. Government Initiative: Skim Latihan 1Malaysia
16 Objective Improving self-confidence, personal development and boosting the marketability of graduates mainly from poor families or rural areas in securing a job One of the Malaysian government initiatives in addressing the issue of unemployed graduates Collaboration among GLCs and private companies using the concept of Corporate Social Responsibility (CSR) Target groups Degree holders and above unemployed citizens who are from low income families or live in remote areas working but not equivalent with the qualifications obtained Established since June 1st, 2011, under the supervision of Economic Planning Unit, Prime Minister s Department 17
17 SL1M TRAINING STRCUTURE Classroom Training Max. 2 months On-The-Job Training Max. 12 months *Durations are depending on the needs of each company 5 required modules: Communication Skills Creative and Analytical Thinking Organizational Adaptability Value-Driven Professional Grooming and Etiquette (tailored to business need of the participating company) Participants will be trained to work as a permanent employees of the company and given a mentor to guide them As a result, participants will be exposed to real work experience in organizations both large and also small and medium size industries Minimum RM1,500 monthly allowances will be paid directly to each SL1M participants by the company throughout the training 18
18 INCENTIVES TO COMPANIES Each expenditures incurred to train every SL1M participants, companies are eligible to claim either one of these incentives: Double Tax Deduction (June December 2020) Double tax deduction on expenses incurred by the company to train (training cost + monthly allowances) unemployed graduates to enhance their marketability under the scheme HRDF-SL1M SCHEME (Starting Apr 2014) Contributions under the HRDF levy will be used to reduce the expenses of the company towards training the SL1M participants 19
19 Participating GLCs and private companies Employability Interventions Unemployed graduates Other government initiatives Different approach by each company to cater different group of unemployed graduates Career Accelerator Re-skilling 2 nd Chance Programme Skill specialization / up-skilling CSR KPI for the GLCs B7 beneficiaries from government contract Job Market 20
20 Training (direct assist) Outreach (indirect assist) Management Training Booster Open Interview Catalyst Classroom training with minimum 5 modules On the job training Requirement Open to all Degree graduates Rigorous classroom training with minimum 5 modules Send to a career fair Requirement Degree graduates who require minimum intervention Open to all education level Outreach programmes throughout the country by zoning Requirement Open to all job seekers Career/Motivation Talk Requirement University students in final semester Duration 6 12 months Duration 3 days 2 months Duration 2-5 days / OI 21
21 Video SL1M 22
22 COMPANIES PARTICIPATED IN THE PROGRAMME BY SECTOR Agriculture and Farming 5% Utilities 3% Finance and Investment 16% Information and Communication 4% Oil and gas 6% Construction and Housing 9% Services 40% Manufacturing 6% Transportation and Logistics 11% 23
23 Year KPIs Directly Number of Graduates Assisted Indirectly ,000 4, ,000 4,622 14, ,000 4,450 13, ,000 4,185 6, ,000 10,000 9, ,000 15,000 18, ,000 6,000 11,354 (up to Apr 17) 48,454 73,904 Total 122,358 25,000 20,000 15,000 10,000 5,000 - Number of Graduates Assisted from 2011 to Apr ,915 20,000 14,072 15,000 15,000 13,322 10,000 10,000 9,500 11,354 4,000 4,197 6,741 4,622 4,000 4,000 4,450 4,000 4,185 6, KPIS Directly Assisted Indirectly Assisted Expon. (Directly Assisted) 24
24 05. Malaysia Beyond 2020
25 Malaysia will be Economy an advanced, progressive and an inclusive economy that leaves an imprint on the world. Our national development will move beyond a focus on economic growth and consumerism, towards becoming a socially advanced economy with emphasis on the rakyat s wellbeing.... world class high income nation and diversified high value added economic activity... Sustainable development and improve qualities of life. Environment a passionate steward of the environment. We will value, protect, preserve, and take pride in our unique flora and fauna. Conducive and harmony working environment. 26
26 People united in diversity, possess unshakeable national identity and share a common set of values. a great nation as reflected in how we care for the underprivileged, the vulnerable, the disabled, and those with special needs. led by a government that delivers, led by leaders with integrity and conviction who embrace the concept of amanah Highly skilled and productive workforce. Positive attitude and competitive workforce at national and international level. Trainable, talented and innovative workers. Responsive, creative and caring employers. 27
27 Thank you Follow us 28
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