29 November 2017

Nilai Spring Resort Hotel

Convention For Young Administrators For ASEAN

Hajah Mahuran Saro Dato’ Haji Sariki

Head of Research

2

1. Introduction to TalentCorp Malaysia

2. Megatrends and Challenges

3. Overview of Malaysia’s Talent Landscape

4. Overview of TalentCorp’s Initiatives

Content

“Malaysia to become a top 20 nation in the world.” YAB Dato’ Seri Najib Abdul Razak, Prime Minister of Malaysia

Source: TN50 Dialogue Session, (2017)

3

“For businesses to capitalise on new opportunities, they will need to put talent development and future workforce strategy front and centre to their growth.”

Source: The Future of Jobs (World Economic Forum, 2016)

4

“In many industries and countries, the most in-demand occupations or specialties did not exist 10 or even five years ago, and the pace of change is set to accelerate.”

Source: The Future of Jobs (World Economic Forum, 2016)

5

An individual with either a proven or shows potential of a specialised skill, technical expertise or professional experience that is in demand

TA L E N T P I P E L I N E

TA L E N T M O B I L I T Y

TA L E N T D I V E R S I T Y

M A L A Y S I A N S A B R O A D

T O P E X P A T R I A T E T A L E N T

M A L A Y S I A N SI N M A L A Y S I A

6

Talent pipeline:

Not about fitting a square peg into a round hole

Page 7

Talent Diversity:

Talent is not about labels

Page 8

Talent Mobility:

The fight for talent is not win or lose

Page 9

65% of children entering primary school today will end up working in completely new job types that don’t yet

exist

The Future of Jobs (World Economic Forum, 2016)10

Megatrends & Challenges Ahead

TECHNOLOGICAL BREAKTHROUGHS

SHIFTS IN GLOBAL ECONOMIC POWER

DEMOGRAPHIC SHIFTS

Source: The Future of Work - A Journey to 2022 (PwC, 2015)Deep Shift – Technological Tipping Points and Societal Impact (WEF, 2015)

RAPID URBANISATION

RESOURCE SCARCITY & CLIMATE CHANGE

People & the Internet

Computing, communications & storage everywhere

The Internet of Things

Artificial Intelligence (AI) and big data

The sharing economy & distributed trust

The digitisation of matter e.g. 3D printing

1 2 3 4

5

Five megatrends disrupting the way people work

12

Source: The Future of Jobs (World Economic Forum, 2016)

13

PRE-SCHOOL TO POST- SECONDARY EDUCATION

1

HIGHER EDUCATION

2

• Inquisitive

• Innovative

• Critical thinking

• Problem solving

• Innovative

Education Blueprint alignment with top 10 skills to be acquired by 2020

The nature of the contract

between employer and

employee is changing

Source: 1. The Global Risks Report 2017 (World Economic Forum, 2017)2. Gamuda official website & Star news article ( https://www.thestar.com.my/business/business-news/2015/12/07/gamuda-to-invest-over-rm7bil-in-construction-division-in-fy16

Impact of Industrial Revolution 4.0

WORK WORKPLACE WORKFORCE

Routine, repetitive, predictive

work being displaced by

automation and algorithm

New technologies are

enabling workplace

innovations

1 2 3

14

• Gamuda’s Industrialised Building

System (Gamuda IBS)

The construction industry are evolving heavily inrelying less on manpower. Gamuda IBSmanufactures customised building elements, whichare installed on site in a Lego-like fashion.

LABOUR INTENSIVE

AUTOMATION

MALAYSIA’S TALENT LANDSCAPE: PAST & PRESENTWhere are we today?

Malaysia Global Competitive Index (GCI)

In 2017, the advancement of Malaysia in GCI ranking is due to the significant improvement in 9th

pillar: Technological readiness, and 12th pillar: Innovation.

2 2 2 2 3

2120

18

2523

39

3132

3432

0

10

20

30

40

Global Competitiveness Index ranking

2011 2012 2013 2014 2015 2016 2017

Singapore

Malaysia

Thailand

The GCI Index ranks a country

across 4 segments:

• Enabling Environment

• Human Capital

• Markets

• Innovation ecosystems

Source: WEF Global Competitiveness Report (2011-2017).Note: The 2017/2018 GCI ranks 137 countries

16

Source: Human Capital Report, Global Talent Competitiveness Index

22

52

42

33

3

24

1311

44

57

48

40

3735

3028

2 2 2 2

7261

6973

0

15

30

45

60

75

Talent Rankings of Selected CountriesRank

HCI: Human Capital Index (out of 130 countries)GTCI: Global Talent Competitiveness Index (out of 109 countries)

GTCI: Singapore

HCI: Singapore

GTCI: Malaysia

HCI: Malaysia

HCI: Thailand

GTCI: Thailand

2013 2014 2015 2016 2017 Year/Performance

• Regionally, Malaysia continues to be a top

talent destination, ranking second in

ASEAN for growing, attracting and

retaining talent in the 2017 Global Talent

Competitiveness Index (GTCI) by INSEAD

Business School.

• The same index placed us at number 28

out of a total of 118 countries.

• Malaysia is also ranked 33 out of 130

countries in the 2017 World Economic

Forum’s (WEF) Human Capital Index (HCI).

17

Global Talent Landscape

0

5000

10000

15000

20000

25000

30000

35000

Online Job Postings by Specializations, May 2016 – June 2017

Top sectors hiring high-skilled talents

1. Information Technology 2. Banking and Finance3. Global Shared Services4. E-commerce

Source: Online Job PortalsNote: Job postings do not necessary equate to number of vacancies as employers may advertise for several positions in one posting

18

Job Opportunities in Malaysia

3200 32003000 3000

2850 2800 2750 2750 2725 2700 2700 2600 2600 2600 2500 2500 2500 2500 2500 2453

RM1,800

RM2,200

RM2,600

RM3,000

RM3,400

Median Starting Basic Salary for Fresh Graduates (RM)

Source: Fresh Graduate Starting Salary Survey (TalentCorp, 2017)

n = Number of Fresh Graduate

10.5%

10.1%

8.8%

7.0%

5.8%

5.8%

5.0%

4.4%

25 Information and Communications Technology Professionals (n=124)

21 Science and Engineering Professionals (n=419)

24 Business and Administration Professionals (n=350)

23 Teaching Professionals (n=74)

Average Salary Increment for Professionals based on Performance of Fresh Graduates

Average Performance High Performance

Median Starting Salary for Fresh Graduates

Occupations on the RiseAccountants and Auditors

Biochemical Engineers

Business Servicers and Administration Managers

Commercial and Industrial Designers

Data Analysts

Database and Network Professionals

General and Operations Managers

Geospatial Information Scientist and Technologists

Human Resource Specialist (Managers)

Information Security Analysts

Investment Fund Managers

Managing Directors and Chief Executives

Materials Engineers

Mathematicians, Actuaries and Statisticians

Mechanical Engineers

Organisational Development Specialists

Regulatory and Government Associate Professionals

Sales and Marketing Professionals (Specialized)

Software and Applications Developers and Analysts

• Two job types stand out due to the frequency and consistency with which they were mentioned: o Data analystso Specialised sales

representatives

• Growth of new and emerging roles in computer, technology and engineering-related fields

Hig

hlig

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ccu

pat

ion

s in

dic

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pre

sen

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CO

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01

7

• Office and Administrative functions are poised for major redundancies

Source: The Future of Jobs (World Economic Forum, 2016), Critical Occupations List (COL) 2016/2017 (TalentCorp, 2016), Accountants Today (2016)

20

Automation and Future of Work

OVERVIEW OF TALENTCORP’S GRADUATE INITIATIVES

R E TA I NN U R T U R EAT T R A C T

MyASEANInternship

MyAPEC Youth Connect

Scholarship Talent

Attraction & Retention

Semester Break Programme

Structured Internship Programme

Talent Analytics Platform

Objective• To profile and map current and future talent at national

and regional level

• To identify and forecast talent and market needs

1 Understand talent needs

2 Understand market needs

3 Map nation’s needs

Why In preparation of Future of Work

Discover your true potential at findmynext.com

24

TALENT EMPLOYERS

• Understanding and self awareness of strength and potential

• Credible assessment

• A variety of developmental programmes and opportunities including initiatives and interventions by TalentCorp

• Career opportunities

• Credible and untapped talent pool (e.g. JPA and MARA graduates, women)

• Talents that match industry needs

• Pre-defined talent with various skills (e.g. leadership, technical and management)

NATION

• Data that identifies talent

• Data that maps current trend

• Data that forecasts future trends

..to spur economic growth and embrace Future of Work

NEXT Profiling to Map Talent Supply

“ASEAN businesses and governments confront a unique challenge – growth in employment opportunities and a shortage of potential employees with the skills to occupy both new and existing roles”Saadia ZahidiHead of Education, Gender and Work and Member of Executive Committee, World Economic Forum

24companies

162interns

MyASEAN Internship

7countries

Apply now! www.talentcorp.com.my/myaseaninternship

MyAPEC Youth Connect

A talent mobility programmepiloted by Malaysia which offers 4-12 months work placements in Malaysia and APEC economies to create a network of APEC youth with local insight and global perspective of doing business in APEC.

Apply now! www.talentcorp.com.my/myapecyouthconnect

• Serve bond with private sector company while developing career

• No recall policy. JPA’s approval means that scholar can fulfil their bond obligationswith the company

• Contribute back to the nation

Register now! https://star.talentcorp.com.my/sch/reg

Scholarship Talent Attraction & Retention (STAR)

Thank You

Except as otherwise noted this work is licensed under the Creative Commons:Attribution-NonCommercial-NoDerivatives 4.0 International Licence (CC BY-NC-ND 4.0)

To view a copy of this license, visit creativecommons.org/licenses/by-nc-nd/4.0/

©2017 Talent Corporation Malaysia Berhad (TalentCorp)

Level 6, Surian Tower, No. 1 Jalan PJU 7/3, Mutiara Damansara, 47810 Petaling Jaya, Selangor, MalaysiaT +603 7839 7000 F +603 7839 7001

TalentCorpMsiaTalentCorpMsia Talent Corporation Malaysia Berhad

Appendices

The Critical Occupations List (COL) is an evidence-based list of occupations in Malaysia that reflects the most sought-

after and hard-to-fill occupations by industry in order to identify skills imbalances across the Malaysian economy.

The list can be used to coordinate policy interventions related tohigher education and TVET, upskilling, scholarship, and immigration.

Source: Critical Skills Monitoring Committee (2017)

Returning Expert Programme

University Course Review

Immigration (Expatriates)

Scholarship allocation

National reference point

Residence Pass-Talent

Talent Profiling

Uses of COL

31

Critical Occupations List Identifies Talent Shortage

The Case for Top Talent for Malaysia

PROFESSIONAL TALENT

GRADUATE & EMERGING TALENT

TOP EXPATRIATE TALENT

TALENT SEGMENTS

PR

OG

RA

MM

ES

SIP65,737

STAR4,067

IAC7

MAI211

AYC27 REP

4,284

CCP402

FWA82

ProCert5,840

RP-T5,923

33

• 0–2 years working experience• Malaysian graduates from local

universities• Malaysian graduates from foreign

universities

• Women professionals in Malaysia• Malaysian professionals working in

Malaysia• Malaysian professionals working

abroad

• Highly-skilled foreign professionals working in Malaysia

Closing the Critical Skills Gap in Malaysia

• Internships• Industry-Academia Collaboration• Scholarship Talent Attraction &

Retention (STAR)

• Career Comeback Programme• Flexible Work Arrangements• Professional Certifications• Returning Expert Programme (REP)

• Residence Pass-Talent (RP-T)• MYXPats Centre• Expatriate Services Division

Graduate & Emerging Talent Professional Talent: Malaysians Professional Talent: Expatriates

• 74,0231 students gained early career exposure through internships at 5,054 companies

• 4,3891 JPA scholars serving their bonds with 2,064 private sector employers under STAR

• 5181 women returned to work under CCP since 2015

• 921 companies in Malaysia have implemented FWA since 2013

• 4,4041 Malaysians abroad have been approved under the REP

• 6,9861 highly-skilled expats have been approved the RP-T

• 96%1 of employment passes were approved within MYXPats Centre’s 5-day charter in 2016

1 TalentCorp data up to W3 October 2017

CRITICAL OCCUPATIONS LIST & NEXT PROFILING

IMPA

CT

SIN

CE

20

11

SIG

NA

TUR

EIN

ITIA

TIV

ES

TALE

NT

PR

OFI

LES

35.9%

45.8%

79.8%

51.1% 52.3%

44.4%

54.5%49.4%

43.8%

50.6%

77.4%

58.4%

49.0% 50.7%

60.3%54.5%

0%

50%

100%

Agriculture andVeterinary

Arts and Humanities Education Engineering,Manufacturing and

Construction

Health and Welfare Science,Mathematics and

Computing

Services Social Sciences,Business and Law

Percentage of Employed Graduates by Field of Study

2013 2014 2015 2016

Employment Trend of Fresh Graduate

Overall, the percentage of graduate who are employed in all field of studies has generally increased for the past 4 years.

Source: Tracer Study 2013 - 2016 (http://www.mohe.gov.my/)

*Employment = percentage of student whom secure employment within 6 months after graduation.

Risk of Automation

• Mainly Malaysians affected but greater proportion of migrants’ occupations could be automated by technology

• Four out of five of these jobs are middle-skilled, while the remaining ones are low-skilled.

• These estimates are based on the technical potential of automation. But just because a task or job can be automated, it does not mean that it will be as there are many other non-technical factors involved.

Up to more than half of all jobs in Malaysia could be at risk of automation in the next two decades

% of employment at high probability of being affected by

automation

Source: An Uneven Future? An Exploration of the Future of Work in Malaysia, Khazanah Research Institute (2017)Note: Adapted from methodologies in Frey and Osborne (2013) and Arntz et al (2016)

Technical Potential of Automation by Occupation

• It is crucial to recognise that tasks that are not substituted by technology will most probably be complemented by it.

• Jobs that are complemented by the technological change will experience improved productivity and increase in the value of their labour, while the reverse is true for jobs in which technology is a substitute.

4 out of 5 jobs that could be significantly affected by automation technology in Malaysia are semi-skilled

Occupations ranked by probability of automation

Source: An Uneven Future? An Exploration of the Future of Work in Malaysia, Khazanah Research Institute (2017)