National Employment Returns (NER) 2016 National Economic Outlook Conference (NEOC) 2018-2019 November 2017 1
1 2 3 To update the profile of the Malaysian workforce To provide information on all categories of occupations of employees in Malaysia Produce Labour Market Indicators on workers pay and benefits, hours of work, education level, types of occupations and employment by industry
NER 2016 Report consists of 10 Sections: Section A Section B Section C Section D Section E Employer s Particulars Salaries and wages of Malaysian Workers Salaries and wages of Foreign Workers Productivity- Linked Wage System Education Level & Skills for Malaysian Workers Q1-Q15 Q16-Q22 Q23-Q25 Q26 Q27-Q30 Section F Section G Section H Section I Section J Hiring Policy Job Vacancy Outsourcing Minimum Wages Financial Information Q27-Q30 Q32-Q34 Q35 Q36-Q37 Q38-Q40 3
1 Stratified Frame of 66,850 establishments 2 20,455 firms responded - 31% 3
Profile of Employers 5
Distribution of Establishments by Region, Malaysia 2009 2011 2013/14 2016 Peninsular Malaysia 77.0% Sabah & W.P Labuan 9.9% Peninsular Malaysia Sabah & W.P Labuan 83.3% 79.2% 79.2% 77.0% 8.3% 9.4% 9.4% 9.9% Sarawak 13.1% Sarawak 8.4% 10.7% 10.7% 13.1% Malaysia 100.0% 100.0% 100.0% 100.0% 6
The largest proportion of establishments is from the wholesale and retail trade sector (38.2%), 2016 Peninsular Sabah and WP Sector Malaysia Labuan Sarawak Malaysia Percent Percent Percent Percent Wholesale & retail trade, repair of motor vehicles & motorcycles 39.80% 32.40% 33.40% 38.20% Accommodation & food service activities 16.80% 28.70% 23.60% 18.90% Construction 10.60% 11.60% 10.00% 10.70% Manufacturing 9.70% 6.40% 7.90% 9.10% Professional, scientific & technical activities 5.70% 3.10% 4.90% 5.30% Agriculture, forestry & fishing 2.30% 4.30% 3.20% 2.60% Administrative & support service activities 2.40% 2.50% 2.80% 2.50% Other service activities 2.40% 2.80% 3.30% 2.50% Transportation & storage 2.10% 2.70% 4.00% 2.40% Human health & social work activities 2.50% 1.70% 1.70% 2.30% Financial & insurance/takaful activities 1.60% 0.90% 1.40% 1.50% Information & communication 1.20% 0.20% 0.40% 1.00% Education 0.90% 0.80% 1.00% 0.90% Real estate activities 0.80% 0.60% 0.70% 0.80% Arts, entertainment & recreation 0.70% 0.80% 0.80% 0.80% Mining & quarrying 0.30% 0.20% 0.40% 0.30% Electricity, gas, steam & air conditioning supply 0.10% 0.20% 0.10% 0.10% Water supply, sewerage, waste management & remediation activities 0.10% 0.10% 0.20% 0.10% Public administration & defence, compulsory social security 0.10% 0.10% 0.10% 0.10% Activities of households as employers; undifferentiated goods-& services-producing activities of households for own use 0.00% - - 0.00% Total 100.00% 100.00% 100.00% 100.00% 7
Distribution of Establishments by Type of Ownership, Equity and Firm Size, 2016 0.7% 0.6% 0.5% 1.3% 0.8% 0.5% 0.4% Individual proprietorship Private limited company 6.2% Partnership 7.9% 17.4% Public limited company 46.4% Others Co-operative Association Micro and Small Medium 31.5% Government-linked company (GLC) Private non-profit making organisation Limited liabilities partnership 86.0% Large 8
Profile of Employees 9
Some 6.09 million employees were covered in the NER 2016 survey Malaysian Foreign workers Malaysia 82.9% 17.1% % Foreign to total employees Peninsular Malaysia 4,125,744 830,193 16.8 Sabah and WP. Labuan 281,203 95,181 25.3 Sarawak 640,206 117,682 15.1 10
Occupations with large presence of foreign workers, 2016 Managers Professionals Technicians & Associate Professionals Clerical Support Workers Service and Sales Workers Malaysian 96% Malaysian 96% Malaysian 98% Malaysian 99% Malaysian 93% Foreign 4% Foreign 4% Foreign 2% Foreign 1% Foreign 7% Total employees: 600,975 Total employees: 549,911 Total employees: 368,928 Total employees: 938,756 Total employees: 1,247,826 Skilled Agricultural, Forestry, Livestock & Fishery Workers Craft & Related Trades Workers Plant & Machine Operators, & Assemblers Elementary Occupations Malaysian 33% Malaysian 78% Malaysian 65% Malaysian 58% Foreign 67% Foreign 22% Foreign 35% Foreign 42% Total employees: 75,651 Total employees: 341,541 Total employees: 785,374 Total employees: 1,181,248 11
Sectors with large presence of foreign workers, 2016 Agriculture Manufacturing Construction Mining Services Malaysian Employees Foreign Employees 33.7% 66.3% 67.5% 32.5% 81.9% 18.1% 91.5% 8.5% 92.2% 7.8% Total Employees 356,967 1,285,561 380,777 18,311 4,048,535 Services sector includes: Electricity, gas, steam & air conditioning supply, Water supply, sewerage, waste management & remediation activities, Wholesale & retail trade, repair of motor vehicles & motorcycles, Transportation & storage, Accommodation & food service activities, Information & communication, Financial & insurance/ takaful activities, Real estate activities, Professional, scientific & technical activities, Administrative & support service activities, Public administration & defence, compulsory social security, Education Human health & social work activities, Arts, entertainment & recreation, Other service activities 12
Number of employees by gender, 2016 Manager Professionals Technicians & Associate Professionals 376,909 c Sex ratio (per 100 females) 262,767 Sex ratio (per 100 females) 240,044 Sex ratio (per 100 females) 224,066 168 287,143 92 128,884 186 Clerical Support Workers 347,231 Sex ratio (per 100 females) Service and Sales Workers 738,778 Sex ratio (per 100 females) Skilled Agricultural, Forestry, Livestock & Fishery Workers 62,380 Sex ratio (per 100 females) 591,526 59 509,048 145 13,271 470 Craft & Related Trades Workers 280,214 Sex ratio (per 100 females) Plant & Machine Operators, & Assemblers 572,542 Sex ratio (per 100 females) Elementary Occupations 910,337 Sex ratio (per 100 females) Sex Ratio (per 100 females): 61,328 457 212,832 269 271,254 336 13
Salary and Compensations 14
Starting and Maximum Monthly Basic Salary (RM) Starting and Maximum Median Basic Salary of Malaysian Employees by Job Category, 2016 6,000 5,000 5,210 5,000 4,000 4,000 3,600 3,000 2,000 2,800 2,000 2,100 2,000 2,000 2,410 2,000 1,350 1,000 1,300 1,000 1,100 1,200 1,200 900 0 Managers Professionals Technicians and Associate Professionals Clerical Support Workers Service and Sales Workers Skilled Agricultural, Forestry, Livestock and Fishery Workers Craft and Related Trades Workers Plant & Machine Operators, & Assemblers Elementary Occupations Maximum Salary 5,210 5,000 3,600 2,100 2,000 2,000 2,410 2,000 1,350 Starting Salary 4,000 2,800 2,000 1,300 1,000 1,100 1,200 1,200 900 15
Median Starting Salaries for Malaysian Employees by Job Category and Sector, 2016 Managers Professionals Technicians & Associate Professionals Clerical Support Workers Service and Sales Workers Skilled Agricultural, Forestry, Livestock & Fishery Workers Craft & Related Trades Workers Plant & Machine Operators, & Assemblers Elementary Occupations Total Agriculture, forestry & fishing 3,250 2,500 1,700 1,185 1,000 1,000 1,000 1,000 900 1,250 Mining & quarrying 4,000 3,344 2,550 1,250 1,900 1,500 1,215 944 1,786 Manufacturing 4,300 2,500 1,800 1,300 1,300 969 1,200 1,000 900 1,690 Electricity, gas, steam & air conditioning supply 3,200 3,000 1,500 1,200 980 1,525 900 800 1,300 Water supply, sewerage, waste management & remediation activities 4,680 2,421 1,800 1,121 1,250 1,277 1,000 900 1,500 Construction 3,500 2,900 2,000 1,400 1,700 1,100 1,500 1,500 1,000 2,000 Wholesale & retail trade, repair of motor vehicles & motorcycles 4,000 3,000 2,000 1,400 1,000 1,100 1,200 1,300 1,000 1,700 Transportation & storage 3,600 2,605 2,000 1,200 1,200 1,050 1,000 900 1,600 Accommodation & food service activities 2,500 2,000 2,000 1,200 1,000 1,100 1,095 1,000 900 1,200 Information & communication 5,500 2,900 2,400 1,800 1,800 1,300 1,280 1,000 2,800 Financial & insurance/takaful activities 5,498 3,000 2,473 1,370 1,500 821 1,584 1,700 1,057 2,450 Real estate activities 5,000 3,300 2,200 1,500 1,500 1,600 1,630 1,500 920 2,100 Professional, scientific & technical activities 5,000 3,000 2,000 1,400 1,500 1,200 1,400 1,500 1,000 2,200 Administrative & support service activities 3,500 2,450 1,896 1,200 1,318 1,100 1,300 1,000 900 1,600 Public administration & defence, compulsory social security 3,245 2,131 1,750 1,260 1,200 1,280 1,000 900 1,500 Education 3,587 2,100 1,700 1,200 1,100 1,200 1,426 1,090 900 1,600 Human health & social work activities 3,000 5,000 1,200 1,000 900 1,000 1,150 1,200 900 1,350 Arts, entertainment & recreation 3,235 2,200 1,600 1,000 950 1,200 1,000 1,053 900 1,200 Other service activities 3,000 2,500 1,750 1,200 1,000 1,000 1,100 1,370 920 1,500 Activities of households as employers 4,250 2,500 Total 4,000 2,800 2,000 1,300 1,000 1,100 1,200 1,200 900 1,650 16
Median Monthly Basic Salary by MASCO Median Monthly Basic Salary By MSIC NER 2016 Managers 5,000 Professionals 3,750 Technicians & Associate Professionals 2,600 Clerical Support Workers 1,750 Service and Sales Workers 1,439 Skilled Agricultural, Forestry, Livestock & Fishery Workers 1,220 Craft & Related Trades Workers 1,600 Plant & Machine Operators, & Assemblers 1,470 Elementary Occupations 1,000 Total 2,071 NER 2016 Agriculture, forestry & fishing 1,550 Mining & quarrying 2,333 Manufacturing 2,140 Electricity, gas, steam & air conditioning supply 2,333 Water supply, sewerage, waste management & remediation activities 1,929 Construction 2,478 Wholesale & retail trade, repair of motor vehicles & motorcycles 2,024 Transportation & storage 2,200 Accommodation & food service activities 1,200 Information & communication 3,500 Financial & insurance/takaful activities 3,360 Real estate activities 3,112 Professional, scientific & technical activities 3,200 Administrative & support service activities 2,966 Public administration & defence, compulsory social security 2,203 Education 2,227 Human health & social work activities 1,890 Arts, entertainment & recreation 2,000 Other service activities 2,140 Total 2,071
Median Monthly Basic Salary by Job Category and Nationality 5,000 10,000 3,653 5,056 2,581 3,650 1,750 1,440 1,488 1,500 1,700 1,530 1,000 1,000 1,165 1,006 1,025 970 Foreign employees are paid more (38-100%) than local managers, professionals and technicians & associate professionals. Whereas locals are paid more in the remaining occupation categories The largest median salary gap between local and foreign employees is among the plant & machine operators and assemblers category; some 52% more Managers Professionals Technicians & Associate Professionals Clerical Support Workers Service and Sales Workers Skilled Agricultural, Forestry, Livestock & Fishery Workers Craft & Related Trades Workers Plant & Machine Operators, & Assemblers Elementary Occupations Malaysians Foreigners 18
Median Monthly Basic Salary by Job Category & Gender, 2016 Manager Professionals Technicians & Associate Professionals RM c 5,167 RM 4,713 Clerical Support Workers RM 3,850 RM 3,500 Service and Sales Workers RM 2,600 RM 2,550 Skilled Agricultural, Forestry, Livestock & Fishery Workers The highest gender wage gap is among craft & related trades workers (45%) and plant and machine operators (40%) RM 1,742 RM 1,600 RM 1,450 RM 1,767 RM 1,300 RM 1,472 Craft & Related Trades Workers Plant & Machine Operators, & Assemblers Elementary Occupations RM 1,757 RM 1,560 RM 1,112 RM 1,215 RM 1,114 RM 938 19
Median Basic Salary of Malaysian Employees by Job Categories, 2009-2016 2,750 2,500 Manager 3,800 5,000 Professionals 2,916 2,700 3,900 3,653 Technician and Associate 1,750 1,700 2,297 2,581 2009 2011 2013/14 2016 2009 2011 2013/14 2016 2009 2011 2013/14 2016 Clerical Support Workers 1,250 1,200 1,767 1,750 Service and Sales Workers 850 992 1,500 1,488 Skilled Agricultural, Forestry and 850 1,200 1,400 1,500 2009 2011 2013/14 2016 2009 2011 2013/14 2016 2009 2011 2013/14 2016 Craft and Related Trade Workers 1,584 1,700 1,162 1,200 Plant and Machine Operator and 1,132 1,168 1,318 1,530 Elementary Occupations 737 800 967 1,025 Source: NER 2009-2016 Note: Unweighted data for 2013/14 2009 2011 2013/14 2016 2009 2011 2013/14 2016 2009 2011 2013/14 2016 20
Median Monthly Basic Salary for High Skills Jobs, 2016 Managers Professionals Technicians and Associate Professionals 11 Chief executives, senior officials & legislators 6,000 21 Science & engineering professionals 4,100 31 Science & engineering associate professionals 2,662 22 Health professionals 5,672 12 Administrative & commercial managers 5,000 23 Teaching professionals 2,522 32 Health associate professionals 1,690 13 Production & manufacturing managers 5,000 24 Business & administration professionals 3,567 33 Business & administration associate professionals 2,874 25 Information & communications technology professionals 3,879 34 Legal associate professionals 3,700 14 Hospitality, retail & other services managers 3,500 26 Legal professionals 4,657 35 Information & communications technicians 2,300 15 Information & communications technology managers 6,205 27 Hospitality & related services professionals 28 Social & cultural professionals 2,450 2,945 36 Social, cultural & related associate professionals 2,185 16 Services managers 3,550 29 Regulatory government professionals 4,537 37 Regulatory government associate professionals 2,411 21
Median Monthly Basic Salary for Semi Skills Jobs, 2016 Clerical Support Workers Service and Sales Workers Skilled Agricultural, Forestry, Livestock and Fishery Workers 41 Office clerks 1,775 51 Personal services workers 1,477 61 Market-oriented skilled agricultural & livestock workers 1,249 42 Customer services clerks 1,628 52 Sales workers 1,467 43 Numerical & material recording clerks 1,963 53 Education & social services workers 1,300 62 Market-oriented skilled forestry, fishery & hunting workers 1,346 44 Other clerical support workers 1,620 54 Protective services workers 1,200 63 Subsistence farmers, fishermen, hunters & gatherers 1,200 Craft and Related Trades Workers Plant and Machine Operator and Assemblers 71 Building & related trades workers (excluding electricians) 72 Metal, machinery & related trades workers 1,757 1,850 81 Stationary plant & machine operators 1,284 73 Handicraft & printing workers 1,500 74 Electrical & electronic trades workers 1,600 82 Assemblers 1,361 75 Food processing & related workers 1,173 83 Drivers & mobile plant operators 1,550 76 Other craft workers 1,617 22
Median Monthly Basic Salary for Low/No Skills Jobs, 2016 Elementary Occupations 91 Cleaners & helpers 978 92 Agricultural, forestry, farming & fishery labourers 977 93 Mining, construction, manufacturing & transport labourers 1,195 94 Food preparation assistants 1,000 95 Street & related sales & service workers 1,167 96 Refuse workers & other elementary workers 1,046 23
Education and Skills 24
Almost half of Malaysian employees have secondary school education and (34%) tertiary education, 2016 Masters Degree and above, 1.9% No formal education, 3.3% Education Level No. Malaysian Workers Percent Degree, 14.8% Primary, 5.7% No formal education 154,303 3.3% Primary 268,840 5.7% 34% Secondary 2,245,662 47.6% Diploma, 14.1% Certificate 442,009 9.4% SKM3, Diploma, Malaysian Skills Advanced Diploma 150,392 3.2% Secondary, 47.6% Diploma 666,587 14.1% SKM3, Diploma, Malaysian Skills Advanced Diploma, 3.2% Certificate, 9.4% Degree 695,497 14.8% Masters Degree and above 90,904 1.9% Total 4,714,194 100.0% 25
Malaysian Employees Education Level, 2011 to 2016 59.8% 51.1% 47.6% Number of Malaysian Employees with tertiary education have increased from 9.2% to 17.3% for Diploma and 11.5% to 16.7% for Degree and Masters Degree. 17.3% 17.3% 16.7% 3.0% 0.0% 3.3% 6.8% 5.7% 9.8% 10.2% 9.4% 9.2% 8.6% 11.5% 12.8% No Formal Education Primary School Secondary Certificate Diploma (SKM3, Diploma, Malaysian Skills Advanced Diploma) Degree & Master Degree and above 2011 2013 2016 Note: Unweighted data for 2013/14. NER 2013/14 did not ask for no formal education. Source: NER2011-2016 26
Top 15 Critical Area of Skills/Training Needed, 2016 01 - Accounting or Finance 03 - Administration or Clerical 21 - Marketing and Sales 19 - Management or Strategic Management 14 - Human Resources 34 - Supervisory 5.6% 5.3% 5.2% 6.9% 9.2% 13.4% Most of the employers want their workers to be equipped with accounting or finance skills, followed by administration or clerical skills as well as marketing and sales skills. 31 - Safety and Health 5.0% 28 - Quality and Productivity 4.6% 35 - Team Building or Motivation 4.5% 07 - Computer or Information and Technology 4.2% 04 - Audit or Tax 4.1% 11 - Engineering 3.8% 12 - Food and Beverages 3.4% 20 - Manufacturing or Production 3.1% 18 - Maintenance or System and Control 2.8% 27
Hiring Policy and Recruitment 28
Distribution of Current Vacancies and Vacancy Rate by Job Category, 2016 Managers Professionals 17,594 32,863 Vacancy Rate 2.8% 5.6% Technicians & Associate Professionals Clerical Support Workers 26,229 35,498 6.6% 3.6% Service and Sales Workers 134,276 9.7% Skilled Agricultural, Forestry, Livestock & Fishery Workers 7,413 8.9% Craft & Related Trades Workers 15,971 4.5% Plant & Machine Operators, & Assemblers 72,215 8.4% Elementary Occupations 91,793 7.2% 29
Hard-To-Fill Vacancies by Job Category, 2016 Note: Hard-to-fill vacancies are defined as being vacant for 3 months or longer despite recruitment efforts. 30
Reasons for hard to fill vacancies, 2016 Not enough applicants Applicants not meeting requirement in Qualification (education/ cert-fication) Competency or skill level Working experience Company not able to meet the salary/benefit s requested by applicants Managers 41.9% 26.7% 52.8% 60.6% 51.0% Professionals 41.1% 29.7% 55.1% 58.2% 50.2% Technicians & Associate Professionals 39.8% 28.6% 60.2% 57.9% 42.3% Clerical Support Workers 38.4% 23.9% 51.0% 52.3% 39.9% Service and Sales Workers Skilled Agricultural, Forestry, Livestock & Fishery Workers Craft & Related Trades Workers 51.9% 15.3% 51.9% 50.5% 39.3% 47.9% 15.1% 43.0% 39.0% 32.7% 46.9% 18.2% 65.6% 57.0% 32.2% For managers and professionals categories, the main reason is that the applicants do not have sufficient work experience. For the Service & Sales, Agriculture, Plant/Machine Operators & Assemblers and other Elementary Occupations, the demand for workers exceed the supply. Plant/Machine Operators & Assemblers 58.3% 14.2% 50.6% 45.6% 32.2% Elementary Occupations 59.1% 10.1% 34.5% 36.6% 33.4% 31
Minimum Wages 32
For 76.3% of the establishments surveyed, the minimum wage policy has not increased labour cost, while 23.7% said it increased cost, 2016 76.3% 2013 2016 Peninsular RM900 RM1,000 Sabah & Sarawak RM800 RM920 Yes No 23.7% Decreased profit Reduced workforce Increased productivity Increased competitiveness Reduced the benefits of workers (allowances and bonus) Recruited more qualified workers Switched to part-time employees Switched to foreign workers Increased outsourcing of work 7.0% 5.1% 14.2% 11.2% 17.4% 18.0% 17.7% 36.5% 60.8% The common impact of the minimum wage policy faced by companies is a profit decline, i.e. they absorbed the cost increases Other impacts: reduced workforce, reduced benefits. Use of part-time or foreign workers, and outsourcing also took place 33
ILMIA 2017 http://www.ilmia.gov.my Thank You 34