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PRIME MINISTER'S OFFICE
@sl1moffical
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PN. HJH. NORASHIKIN BT. DATUK HAJI ISMAIL ECONOMIC PLANNING UNIT
PRIME MINISTER’S DEPARTMENT OF MALAYSIA
CONTENT OVERVIEW
01. Labor Market
Structure
31.7m Population
54.3% 45.7% Labour Force
Participation Rate
14.7m Labour Force
≈500k Avg. school leavers
each years
14.2m Employed
3.4% Unemployed
27% 60% 13% High skilled Semi skilled Low skilled
7.8 m 21.7 m
68% in Working Age Population (15-64)
1.9 m
65+ 0-14
14.7 m 7.0 m
68% in Labour Force 42% House
work
63% 39 yo & below 37%
62%
38%
Employment percentage by gender
LABOUR MARKET
Source: EPU analysis based DOSM population and LFS data
15m year 2020
target
62% Services
17% Manufacturing
11% Agriculture
9% Construction
1% Mining & Quarrying
Employment by Industry
Graduate from Higher Education
TVET from Higher Education
School
54% 36% 10%
54.2% Youth
unemployment
RM1,703 Median Wage
Employment percentage
by Nationality
84% 16% Malaysian
Non-Malaysian
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02. Issues and
Way Forward
01 Youth High
Unemployment 10.5
17
3.4
7
0
5
10
15
2000 1990 1980
% 20
Total
Youth
Unemployment Rate 1982-2016
2010 2016
Triple than national
unemployment rate
[ ] Global Youth Unemployment (ILO 2016)
• World ~ 13.1%
• Developed Economies ~ 14.5%
• South East Asia & Pacific ~ 13.0%
Unemployment by Age Group (%)
16.5
37.7
22.7
9.4
13.7
0
10
20
30
40
15 - 19 20 - 24 25 - 29 30 - 34 35+
21% of unemployed
youth:
Diploma & Degree holders
Youth (age 15-24) constitute
more than half of unemployment
[54.2%]
@ 11% unemployment rate 7
2.6 3.5
Age Cohort of Youth Population (in millions)
Total: 6.1 mil.
Outside
labour force
Inside
labour market
67%
33%
73%
27%
20-24
15-19
20-24
15-19
MALE
FEMALE
02 TVET Workforce
Quantity Gap in
Lack of recognition for Technologist
Uncoordinated governance
Lack of industry input in
curriculum design
Unclear TVET articulation
Two accrediting bodies
Multiple Providers
No specialization in
public TVET
Fragmented TVET Delivery
Limited access to Higher Education
Wage premium in public
and private sector
Technologist not recognised
as professionals
Competency gaps among Instructors
No centralised database
on instructor profile
Minimal industry exposure
Skills deficiencies
TVET ISSUES
AND
CHALLENGES
No rating system for
performance
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0.7 Mn TVET workforce supplied (2014 to 2020)
1.0 Mn TVET workforce demanded (2014 to 2020)
Net undersupply
0.3Mn
03 Foreign Participation of
Workers 2,270
0
500
1,000
1,500
2,000
2,500
2010 2000 1990 1980
(‘000 person) +9% +181%
1,818
2,063
807
410
242
Manufacturing Services Agriculture Construction
19% 21% 25% 35%
Sector Participated by Foreign Workers
181% increase of foreign workers employment since
2000-2013 (legal)
Lack of comprehensive policy on addressing the issues in
holistic manner
Issues regarding enforcement – estimated higher number
of illegal foreign workers
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
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04 Woman
In The Labour Force Participation
VIE
TNA
M
THA
ILA
ND
SIN
GA
PO
RE
MA
LAYS
IA
PH
ILIP
PIN
ES
IND
ON
ES
IA
73
.3%
61
.7%
58
.6%
*
53
.6%
50
.5%
50
.2%
**
100
75
50
25
0
2012
49.5%
2013
52.4%
2014
53.6% 2.9% 1.2%
Source : World Bank (databank.worldbank.org)
*Source : Ministry of Manpower, Singapore
** Source : International Labour Organization
DOUBLE
PEAKED
10
20
30
40
50
60
70
80
0
20 25 30 35 40 45 50 55 60 65
• 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
• Work-life balance
• Low LFPR for women with high
education attainment
• Low Female LFPR in Malaysia
compared to neighbouring
countries.
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 2050.
Promote work life balance for working mothers
Increase female participation in top management and decision
making level.
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Way Forward
03. Government
Initiatives
Government Initiatives on
Human Capital Building
Others
Retrenchment
Employment Insurance Scheme
Underprivileged
Drop-Out
B40
Community
Handicap
Skim Penggajian Orang Kurang Upaya
(SP-OKU)
Geran Skim Bantuan Galakan Perniagaan Orang
Kurang Upaya (SBGP-OKU)
Talent bridging
& outreach
Graduates
Structured
Internship Industry –
Academia
Collaboration
Financial Sector
Entrepreneurship
Facilitating SMEs
Digital
(Crowdsourcing)
Young Entrepreneur
SMEs Training
Centre Micro Credit
High
Potential
Latent Workforce
• Single Mother
• Retirees
• Prisoners /
Ex-prisoners
• Former Drug
Addict
• Indigenous People
• Homeless
Expatriate
Retention
Ease of
Application
Foreign Worker
Malaysian
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TVET
Upskilling
National
Plan
Provider
Women
Childcare
facilities
Career
Comeback
Flexible Work
Arrangement
Side Income
for Housewife
Highlights of the
ELEVENTH MALAYSIA PLAN 2016-2020
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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)
• Compensation of employees to GDP increase from 34.9% (2015) to
(2020) 40%
• Malaysia Wellbeing Index to increase by 1.7% p.a.
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RM2,540
0
5,000
10,000
15,000
20,000
25,000
1989 2009 2014 2020
Average monthly household income (current price)
Income Group
% p.a.
2011-2015
2016-2020
National 8.9 9.8
T20 7.2 8.2
M40 9.5 10.1
B40 12.7 13.2
B40 : RM5,270
M40 : RM9,970
National Average:
RM10,540
National Median: RM8,420
T20 : RM22,240
6.90 6.94 5.64 4.22
Ratio of T20 over B40 income
Target for more rapid increase in income for B40 households and narrower gap between income groups
Economic Planning Unit©, Prime Minister’s Department, Malaysia
Transforming TVET to meet industry demand
Strengthening lifelong learning for skills enhancement
Improving the quality of education for better student outcomes and institutional
excellence
Improving labour market efficiency to accelerate economic growth
Strategic Thrust 3 Accelerating human capital development for an advanced nation
3.7%
40%
Labour productivity growth rate per annum
Compensation of employees to GDP in 2020
Monthly median wage in 2020
2,500 RM
100 TOP
2 universities in Top 100 of the QS World University Rankings
Student enrolment from preschool to upper secondary
100%
Intake of SPM leavers to TVET programmes
225,0000
Increase in number of employees that will benefit from expansion of the HRDF act
58%
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
Main strategies and selected outcomes
225,000
15 Economic Planning Unit©, Prime Minister’s Department, Malaysia
04. Government Initiative:
Skim Latihan 1Malaysia
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)
Established since June 1st, 2011, under the supervision
of Economic Planning Unit, Prime Minister‘s Department
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Objective Improving self-confidence, personal
development and boosting the
marketability of graduates mainly
from poor families or rural areas in
securing a job
Target groups
unemployed citizens who are
from low income families or live
in remote areas
working but not equivalent with
the qualifications obtained
Degree holders and above
Minimum RM1,500 monthly allowances will be paid directly to each SL1M participants by the company throughout the training
Max. 2 months
Communication
Skills
Creative and
Analytical Thinking
Organizational
Adaptability
Value-Driven
Professional Grooming and
Etiquette
Classroom Training On-The-Job Training
Max. 12 months
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
5 required modules:
(tailored to business need of the participating company)
*Durations are depending on the needs of each company
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SL1
M T
RA
ININ
G S
TRC
UTU
RE
INCENTIVES TO COMPANIES
Double Tax Deduction (June 2012 - 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
Each expenditures incurred to train every SL1M participants,
companies are eligible to claim either one of these incentives:
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Career Accelerator
Re-skilling 2nd Chance Programme
Skill specialization / up-skilling
Job Market
Other government
initiatives
Par
tici
pat
ing
GLC
s an
d p
riva
te
com
pan
ies
Employability Interventions
Unemployed
graduates
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Different approach by each company to cater different group of unemployed graduates
CSR
B7 beneficiaries from government
contract
KPI for the GLCs
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Open Interview Catalyst Booster Management
Training
Outreach (indirect assist)
Training (direct assist)
• Classroom training with minimum 5 modules • On the job training
Requirement
Open to all Degree graduates
Duration 6 – 12 months
• Rigorous classroom training with minimum 5 modules
• Send to a career fair
Requirement Degree graduates who require
minimum intervention
Duration 3 days – 2 months
• Open to all education level • Outreach programmes
throughout the country by zoning
Requirement
Open to all job seekers
Duration 2-5 days / OI
• Career/Motivation Talk
Requirement University students in final
semester
• Video SL1M
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Finance and Investment 16%
Information and Communication 4%
Oil and gas 6%
Construction and Housing 9%
Manufacturing 6%
Transportation and Logistics 11%
Services 40%
Agriculture and Farming 5%
Utilities 3%
COMPANIES PARTICIPATED IN THE PROGRAMME BY SECTOR
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Year KPIs Number of Graduates Assisted
Directly Indirectly
2011 4,000 4,197 -
2012 4,000 4,622 14,072
2013 4,000 4,450 13,322
2014 4,000 4,185 6,741
2015 10,000 10,000 9,500
2016 15,000 15,000 18,915
2017 20,000 6,000 11,354
(up to Apr 17) 48,454 73,904
Total 122,358
4,000 4,000 4,000 4,000
10,000
15,000
20,000
4,197 4,622 4,450 4,185
10,000
15,000
6,000
0
14,072 13,322
6,741
9,500
18,915
11,354
-
5,000
10,000
15,000
20,000
25,000
2011 2012 2013 2014 2015 2016 2017
Number of Graduates Assisted from 2011 to Apr 2017
KPIS Directly Assisted Indirectly Assisted Expon. (Directly Assisted)
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05. Malaysia
Beyond 2020
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.
Malaysia will be…
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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.
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Thank you
@sl1moffical
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