Professional Documents
Culture Documents
APRIL 2012
PUBLISHED BY
I N CO L L A B O R AT I O N W I T H
Published by:
in collaboration with
Published by:
1106 & 1107, Block B, phileo Damansara ii No.15, Jalan 16/11, 46350 petaling Jaya Selangor Darul Ehsan t +: (603) 7955 2922; F +: (603) 7955 2933; E+: pikom@pikom.org.my W+: www.pikom.org.my
Wisma JobStreet.com, 27, Lorong Medan tuanku 1, (off Jalan Sultan ismail), 50300 Kuala Lumpur, Malaysia t +: 603-2176 0493 (DL); F+: (603) 2698 7200 W+: www.jobstreet.com E+ : marketing-kl@jobstreet.com
KpMg Malaysia, Level 10, KpMg tower, 8, First Avenue, Bandar Utama, 47800 petaling Jaya t: + (603) 7721 3656 ;F: + (603) 7721 3399 W+: www.kpmg.com.my iSSN No: 2180-267X release date: April, 2012 Editor-in-Chief: ramachandran ramasamy, head of policy, Capability and research, piKoM Contributor: Dominic Wong, Senior Marketing Manager Malaysia, JobStreet.com reviewed by : Woon tai hai, Executive Director & harinder Kaur, hr Advisory Associate Director, KpMg DiSCLAiMEr this publication contains findings based on data provided by JobStreet.com Sdn Bhd (449122-K). KpMg Business Advisory Sdn Bhd (150059-h) and piKoM Services Sdn Bhd (801999-W) collaboratively carried out the data analysis. Although professional effort has been made to ensure the accuracy of data analysis and presentation, all information furnished in this publication are provided strictly on an as is and as available basis and is so provided for your information and reference only. With this caution, kindly be informed that this release is not presented to address the circumstances of any particular individual or entity. As such, JobStreet.com, KpMg and piKoM including their sponsors, partners and associates, whether named or unnamed, do not warrant the accuracy or adequacy of the data and findings. Moreover, all parties concerned explicitly disclaim any liability for errors or omissions or inaccuracies pertaining to the contents of this publication. therefore, the use of data and findings presented in this publication is solely at the users risk. piKoM, JobStreet.com and KpMg shall in no event be liable for damages, loss or expense including without limitation, direct, incidental, special, or consequential damage or economic loss arising from or in connection with the data and / or findings published in this series. however, professional advice can be sought from the producers of this publication.
Copyright Copyright 2012. All rights reserved. No part of this publication may be produced or transmitted in any form or any means, electronic, mechanical, photocopying or otherwise, including recording or the use of any information storage and retrieval system without prior written permission from piKoM.
ConTenTs
Foreword by PIKOM Chairman Preamble by PIKOM President 1. Introduction 2. Essence of Data Collation 3. Malaysian Economic and ICT Industry Outlook 4 Feature Article: ICT Graduates and Employment Prospects 5. ICT Job Market Salary Trends 5.1. Overall ICT Professionals 5.2. Average Salaries by ICT Job Category 5.3. Average Salaries of ICT Professionals by Industry Category 5.3.1 Fresh Graduates (Entry level) 5.3.2 Executive & Managerial Levels 5.4. Top Paying Industries 5.5. Average Salaries of ICT Professionals in the Selected ICT Industries 5.6. Comparison between ICT Industry Segments and ICT User Industries 5.7. Selected ICT Job Functions 5.8. Employment Size 5.9. Geographic Locations 5.10. Hot ICT Jobs 6. Regional Benchmarking 6.1. Comparison of Average ICT Professional Remuneration in Asian Countries 6.2. Benchmarking with Selected Developed Nations 7. Employment Outlook and Perceptions 7.1. Jobstreet.com Employee Confidence Index (JECI) 7.2. Job Outlook 2012 7.3. Job Growth for Next 12 Months 7.4. Comparison of Job Outlook Q1, 2011 and Q1, 2012 7.5. Employers Perception on Economic Performance 7.6. Anticipated Hiring Activities 7.7. Top 10 Specialisations Sought 7.8. What People Are Saying About First Quarter 2012 8. Conclusion 4 5 7 8 10 15 19
27
29
35
shaifubahrim saleh
ICT Job MarkeT ouTlook In MalaysIa | aprIl 2012
1. Introduction
PIKOM, the National ICT Association of Malaysia, has once again taken the lead to compile the ICT Job Market Outlook in Malaysia 2012 in collaboration with JobStreet.com and KPMG. PIKOM undertook the task of data collation and coordination over and above its provision of ICT industry-specific information and outlook. The largest recruitment service provider, Jobstreet.com provided the latest salary information on ICT professionals by industry, job markets, and survey-based economic perception of job seekers and industry players. Meanwhile, KPMG, from the big four international audit, tax and advisory firms, analysed the countrys current economic outlook. Other contributors to this report include published salary reports and journals from ZDNet Asia, Robert Walters, Kelly Services, Active TechPros IT and the Malaysian Employers Federation on local and regional salary practices and industry insights.
piKoM is the national representative of the information and communications technology (iCt) industry with more than 1,500 members as at end of 2011. its members contribute about 80% of the total iCt revenue in the country. JobStreet.com is the largest online recruitment service provider for all categories of jobseekers, from fresh jobseekers after graduation to senior level positions. Job Street operates the JobStreet.com (www.JobStreet.com) websites presently covering the employment markets in Malaysia, Singapore, philippines, indonesia, india, Japan and thailand. the group currently services over 50,000 corporate customers and over 6 million jobseekers. Job Street is listed on the Main Board of Bursa Malaysia Securities (JoBSt). KpMg is an international network of member firms specialising in audit, tax and advisory service. KpMg first established a presence in Malaysia in 1928 and the Malaysian firm now has 65 partners and over 1,700 staff located across 10 offices. globally, KpMg operates in 144 countries with a staff size of 137,000 people.
iii.
Average Monthly Salaries of ICT Professionals by Key ICT Industry Segments ICT Hardware ICT Software Call Centre Top five paying industries Comparison between ICT industry segments and ICT user industries Selected ICT job functions Employment size Geographical locations
vi. Regional Benchmarking by Selected Asian and English Speaking Developed Economies vii. Feature Article Industry thought leadership viii. Perception by Job Seekers and Employers Jobstreet.com Employee Confidence Index (JECI) Job Growth and Employment Prospects Employers Perception on Economic Performance Anticipates Hiring Activities What People Are Saying About First Quarter 2012
Unit: (%)
2.9 2.3 1.8 2.4 2.6 3.2 3.4 3.6
3.8
4.0
4.1
4.2
11
11
11 pSe
Au g-
Source: Bank Negara Malaysia, 2012 Figure 1: Inflation Rates in Malaysia: January December, 2011
10
1 No v11 De c11
Ja n1
-1
ar -1
Ap r-1
ay -1
l-1
Fe b
Ju n-
Ju
Oc
t-1
Unit: Ringgit Malaysia 3.0595 3.0515 3.0259 2.9735 3.0115 3.0205 2.9555
3.1910
3.1725 3.1770
2.9803
3.0735
-1 1
Fe b11
ar -1 1
Ap r-1 1
ay -1 1
n11
l-1 1
-1 1
Se p11
t-1 1
No v11
Au g
Source: Bank Negara Malaysia, 2012 Figure 2: Malaysian Foreign Exchange Rate Per USD: January-December, 2011
Healthy consumption and investment growth are also anticipated in view of the overall low inflation rate as cited above, which as forecasted by BNM, should linger between 2.5% and 3.0% in 2012, down from 3.2% in 2011. The low Overnight Policy Rate of 3.00%, low base lending rate (BLR) of commercial banks at 6.45%, and a strengthening Ringgit Malaysia against the US Dollar, as shown in Figure 2, Euro and other regional currencies are additional factors that should provide the requisite impetus for better growth. Private sector investments are expected to expand through the implementation of new mega projects like the Kajang-Sg Buluh Mass Rapid Transit (MRT) and expansion of the on-going corridor projects namely Iskandar Malaysia, Northern Corridor Economic Region (NCER), East Coast Economic Region (ECER), Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCORE). In 2011, Iskandar Malaysia was expected to attract public sector investments totaling RM64.38 billion for the construction and improvement of roads, river cleaning and public housing. Mega projects in entertainment, tourism, education and technology like Legoland Malaysia Theme Park, Newcastle University of Medicine Malaysia, Malaysia Premium Outlet, Indoor Theme Park Puteri Harbour, Pinewood Iskandar Malaysia Studio, and Netherlands Maritime Institute of Technology were developed in conjunction with the private sector. Public and private investments are expected to pour in for the implementation of the Economic Transformation Programme (ETP), Government Transformation Programme (GTP) and of late, the Digital Transformation Programme (DTP) and support projects under the Rural Transformation Programme (RTP) and Political Transformation Programme (PTP), as well as the 1Malaysia overarching programme as shown in Figure 3. Indeed, in all the policy led transformation initiatives, contemporary ICT has an integral functional role to ensure their efficient and effective implementation. Needless to say, the DTP initiatives are pure ICT projects aimed at providing transformational changes in five broadly categorised domain areas, namely the technological, economic, social, governance and environmental dimensions. It is also envisaged that successful implementation of the Government strategic programmes can increase the contribution of the ICT sector from its current level of 9.8% of the Gross National Income (GNI) to 17% or over RM294 billion by 2020.
ICT Job MarkeT ouTlook In MalaysIa | aprIl 2012
De c11
Ja n
Ju
Ju
Oc
11
VISION 2020
1 Malaysia Political Transformation Programme (PTP) One Malaysia ETP Economic Transformation Programme New Economic Model: A high income, inclusive & sustainable nation GTP Government Transformation Programme DTP Digital Transformation Programme Accelerate the development of digital economy; Improve quality of life Rural Transformation Programme (RTP)
131 Entry Point Projects; 60 Business Opportunities; 8 Strategic Reform Initiatives (SRI)
Tenth Malaysia Plan (10MP : 2011-2015) / Eleventh Malaysia Plan (11MP: 2016-2020) *As at end 2011 Source: PIKOM, 2011 (Contents extracted from PEMANDU, MDeC & MOSTI) Figure 3: National Transformation Policy Programmes
Of this target, RM75 billion is projected to come from DTP and the balance of RM126 billion from the ETP and GTP. The DTP alone, with RM31.1 billion worth of investments, is poised to create 165,000 jobs and RM59.2 billion in terms of GNI through the implementation of 25 potential entry point projects and 28 potential business opportunities. In addressing the digital divide, the Malaysian Communications and Multimedia Commission (MCMC) is continuing its efforts with the resumption of its Netbook Programme that is expected to deliver 300,000 units during the first quarter of 2012. In the third and fourth quarters in 2011, however, MCMC stopped the supply due to severe flooding in Thailand that disrupted overall supply of hard disks in the market. In the first and second quarters of 2011, a total of 280,000 and 123,000 units were delivered respectively under the Netbook Programme. This shored up PC supplies in 2011. Portable PCs currently account for 72% of total market share in comparison to 28% for desktop units. However, the market trend is shifting towards much lighter and more convenient mobile devices like the iPad and smartphones that fit into the lifestyles of the XY generation. With increasing broadband penetration currently at 60% and with cloud computing gaining ground among SMEs, the local ICT market can expect buoyant times in the near future. Other grassroots activities and factors that are expected to contribute effectively to local ICT growth include expansion in online sales activities and e-commerce, a 60% achievement in broadband penetration in 2010, a large pool of Internet users across geography and demography, proliferation in Internet and mobile banking, critical mass in technology-savvy XY population and introduction of state-of-the-art technology as well as a paradigm shift in the mindset of the population.
12
ICT Job MarkeT ouTlook In MalaysIa | aprIl 2012
Significant growth for the ICT industry in Malaysia not only rests on domestic driver conditions, but also on external factors such as the international environment. Specifically, IT spending in China and India - which are projected to register 15.0% and 16.0% respectively - is bound to benefit Malaysia through long-standing bilateral ties as well as increasing activities in ICT trade over the past few years. The US and Japanese IT markets are also rebounding to at least 5.0% growth and are likely to impact positively on the Malaysian IT sector. Based on these factors, PIKOM has predicted that IT spending in Malaysia would net double digit growth of at least 12.0% in 2012, despite global IT spending forecasted to dip to a 5.0% growth rate for 2012, down from 5.7% in 2011 at USD$1.6 trillion, as per IDC projections. Despite its relatively long history and prospective outlook in 2012, the nations ICT sector continues to face several persistent challenges, as follows: i. Quantity and quality of ICT Graduates: As shown in Figure 4, supply of ICT graduates from both public and private institutions has not improved much in the recent past. In particular, ICT enrolments have been cut by almost half from 96,090 in 2002 to 49, 731 in 2011. Associated issues such as quality, competency and employability of ICT graduates to meet both the ICT producer and ICT user industry needs prevail. Coupled with low remuneration, rampant jobhopping for better terms of employment, and a declining interest among young people in ICT jobs that demand long working hours, continue to provide the industry with this dilemma;
2003
16,529 84,366
2004
26,632 70,691
2005
23,783 53,710
2006
22,408 66,476
2007
27,911 51,766
2008
23,788 51,354
2009
24,595 50,813
2010
25,428 50,272
2011
24,991 49,731
Source: Department of Statistics and PIKOM Estimates Figure 4: ICT Enrolment in Institutions of Higher Learning in Malaysia, 2002-2011
ii. Capability and capacity building: The ICT industry including the workforce generally lack interest in pursuing process and quality improvement certifications such as Capability Maturity Model Integration (CMMI), People Capability Maturity Model (PCMM), Information Technology Infrastructure Library (ITIL), Six Sigma and Lean Six Sigma, as well as Green ICT Certifications which are critical to globalise Malaysian ICT products and services, or tosolicit ICT contracts from developed economies; and
ICT Job MarkeT ouTlook In MalaysIa | aprIl 2012
13
iii. Research, development and commercialisation culture: Public and private universities and the ICT industry are still behind in creating globally-recognized brands for ICT products and services due to the lack of a strong R&D and patenting culture. iv. Economic risks: Investments affected by risk aversion among potential investors who are concerned about shaky global economic performance, slacking in the delivery of the ETP, GTP, DTP, PTP and RTP and Governments ambitious efforts to reduce the fiscal deficit from 5.4% of GDP in 2011 to 4.7% in 2012 dampening public expenditure and investments as well as poor macro economic performance due to erratic fluctuation in oil and commodity prices in global markets can bring about negative impacts on ICT sector growth.
14
By Woon Tai Hai, PIKOM Research Committee Chairman & KPMG Executive Director, April 2012
How can Malaysia become an innovative nation and migrate from a consumption-based to a creative-based culture particularly in the ICT industry? Can the industry produce a homegrown brand equivalent to Acer, Samsung, Apple or Google? The nation urgently needs a game changer strategy to seed such transformation. Talent and skills, in particular the quality of our ICT graduates, will represent a critical ingredient in this aspiration.
It is a fact that foreign graduates from Ivy League universities have an edge over their local counterparts as many organisations still use this as criteria for the recruitment of fresh graduates. In addition, foreign graduates living overseas, especially in an English-speaking country, would also certainly have greater exposure in terms of language capabilities, greater independence and early work experience prior to their return home.
16
What are the Imperative Initiatives and Actions Necessary to Mitigate these Gaps?
Initiatives and levers of change can potentially originate from two sources, Government and Academia.
On the other hand, the academia and Institutions of higher learning may wish to:
Forge closer collaboration with industry players to ensure better understanding of industry needs; Interact with more established learning institutions (abroad) in understanding best practices and if possible initiate inter-varsity research programmes; Ensure that an adequate and relevant industry training period is embedded into the curriculum to provide longer working exposure. Internship is now almost standard across many universities, albeit for only short timeframes of two to three months. To ensure greater effectiveness, it is recommended that a minimum of six months be allocated for such training.
17
18
7,000 6,500 6,000 5,500 5,000 6.3% 4,500 4,000 2006 4,184 2007 4,446 2008 4,699 2009 5,276 2010 5,626 2011 6,240 12.3% 5.7% 6.6% 10.9% 9.0%
6,800
6,240
2012 6,800
Source: Jobstreet.com & PIKOM, 2012 Figure 5: Average Salary of ICT Professionals: 2006-2012
Year
Overall
Footnote: Overall for the year 2011 excluded entry level salary for consistency Source: Jobstreet.com & PIKOM, 2012 Table 1: Average Salary of ICT Professionals by Job Category: 2010-2011
19
2,238
1,800 3,280
20
Junior Executive (1-4 working experience) Middle Management (Manager) Percentiles (Ringgit Malaysia) 25th 7,300 6,150 5,500 4,850 5,750 6,200 6,000 3,800 5,365 6,800 5,000 6,980 7,800 6,094 6,200 6,000 8,484 6,500 7,035 5,400 4,710 4,800 5,869 6,975 8,050 6,300 7,700 8,500 8,600 8,556 8,000 7,000 10,000 6,500 9,260 12,720 7,000 6,600 7,956 12,500 15,500 10,000 10,000 8,000 11,500 8,190 10,000 7,800 8,200 7,500 8,500 7,575 7,200 8,340 9,760 6,524 6,350 7,339 9,496 9,800 8,537 7,967 7,244 9,888 17,000 17,000 14,091 4,800 6,400 4,950 7,000 9,000 10,000 14,085 9,321 13,000 11,000 8,000 10,000 8,000 10,052 8,013 8,000 6,300 7,500 6,575 10,500 8,500 10,500 14,000 15,000 15,000 13,500 12,600 10,000 12,000 7,150 9,000 7,263 7,500 10,000 6,000 7,000 5,963 7,600 16,500 17,300 12,500 15,000 8,500 11,000 16,200 20,500 15,400 21,250 15,000 17,460 14,700 7,250 9,030 7,258 8,000 9,780 7,983 8,549 12,000 15,000 11,887 14,475 10,000 11,000 8,125 10,250 13,550 16,146 13,680 15,313 12,800 11,365 12,175 8,800 10,800 8,925 50th 75th Weighted Mean 25th 50th 75th Weighted Mean Geometric Mean 4,600 5,168 6,459 4,742 5,601 5,929 5,762 4,276 6,258 4,516 5,928 6,105 4,436 6,522 8,020 4,075 5,084 6,200 5,803 6,369 6,848 5,300 6,170 4,725 6,608 Percentiles (Ringgit Malaysia) Senior Management (Senior Manager) Weighted Mean 25th 3,400 4,300 4,500 3,600 5,000 3,625 3,875 3,500 4,100 3,100 4,100 4,179 3,605 4,000 5,500 3,100 5,000 4,044 4,500 3,200 5,000 5,300 3,800 3,240 3,900 4,800 4,700 6,200 5,700 5,300 7,200 5,300 5,300 6,030 7,710 6,193 5,300 3,850 4,800 3,925 5,275 7,200 5,563 5,040 6,000 5,031 5,100 6,000 5,300 4,000 5,500 4,150 7,500 9,500 7,500 5,100 6,500 5,175 5,000 5,600 4,801 5,200 6,454 5,261 4,500 5,900 4,750 4,150 5,000 4,100 5,500 7,000 5,525 3,600 5,700 4,100 5,000 6,200 5,019 4,700 6,050 4,769 6,200 8,267 6,417 4,312 6,000 4,556 5,300 6,480 5,395 5,012 5,630 4,989 4,000 7,000 4,600 50th 75th 3,600 4,000 3,700 7,158 3,777 3,600 3,100 3,900 3,000 3,500 4,000 2,600 3,500 4,500 2,900 4,700 3,200 4,600 3,100 4,000 3,700 3,800 3,500 3,300 3,092 2,964 3,250 2,794 3,700 2,925 3,905 2,500 3,500 3,095 2,525 3,400 3,113 2,523 3,150 2,900 3,025 3,002 4,890 3,225 3,400 3,100 Percentiles (Ringgit Malaysia) Weighted Mean
Industry (Central Malaysia) 50th 3,100 3,350 3,200 4,600 3,000 3,000 3,000 3,100 2,500 3,300 3,350 2,500 3,089 3,500 2,500 3,960 3,000 3,700 3,000 3,200 2,977 3,034 3,350 75th
25th
Agriculture/Plantations/Aquaculture
Automotive/Heavy Industry/Machinery
2,600
Bank
2,900
2,800
Chemical
3,200
Computer/IT (Hardware)
2,230
Computer/IT (Software)
2,500
Construction/Building
2,500
Consulting (Business/Technical)
2,500
Education
2,090
2,350
Financial Services/Securities/Insurance
2,900
Hotel/Restaurant/Food Service
2,500
Manufacturing
2,700
Oil/Gas/Petroleum
2,500
Printing/Publishing
2,100
Property/Real Estate
3,000
2,500
Semiconductor/Wafer Fabrication
2,800
Services
2,075
Telecommunication
2,600
Textiles/Garment
Transport/Storage/Freight/Shipping
2,200
Utilities
2,500
Wholesale/Retail/Trading
3,000
3,151
5,039
3,925 7,500
7,837
4,950 14,091
12,166
8,125 16,146
6,240
4,075 8,020
21
As shown in Table 2, the semiconductor and wafer fabrication industries paid the highest monthly salary of RM3,280 to fresh graduates in 2011. This was followed by manufacturing and the oil & gas sector, especially in the case of large corporations and multinationals where fresh ICT graduates were paid average monthly salaries of RM2,508 and RM2,418 respectively.
Senior Executive (5 or more years working experience) Oil/Gas/Petroleum Chemical Telecommunication Semiconductor/ Wafer Fabrication Consulting (Business/ Technical)
Middle Management (Manager) Electrical & Electronics Wholesale/Retail/Trading Services Oil/Gas/Petroleum Semiconductor/ Wafer Fabrication
Senior Management (Senior Manager) Oil/Gas/Petroleum Services Computer/IT (Hardware) Science & Technology Manufacturing
Source: Jobstreet.com & PIKOM, 2012 Figure 6: Top Five Paying Industries by Job Category, 2011
22
7.0% 9,461
8,845
4,778
Source: Jobstreet.com & PIKOM, 2012 Figure 7: Average Monthly Salary of ICT Professionals by Selected Industries: 2008 2011
ICT Junior Executive Year ICT Hardware 2,325 2,767 2,720 3,025 11.2 ICT Software 2,500 2,557 2,750 3,600 30.9 Call centre / ICT Enabled Services 2,500 2,748 2,925 3,225 10.3
ICT Senior Executive ICT Hardware 3,400 4,130 4,320 4,769 10.4 ICT Software 3,924 3,869 4,505 5,019 11.4
ICT Middle/Senior Manager ICT Software 7,128 7,305 7,841 8,522 8.7 Call centre / ICT Enabled Services 8,364 6,753 10,385 10,696 3.0
Call centre ICT / ICT Hardware Enabled Services 3,749 4,190 4,428 4,556 2.9 6,360 6,893 8,498 9,291 9.3
Source: Jobstreet.com & PIKOM, 2012 Table 4: Average Monthly Salary by Job Category and ICT Industry Segment
23
Table 4 show all job categories - except for the managerial category - recorded significant rise in average monthly salaries in 2011 in comparison to 2010. Specifically, junior executives in the ICT Software segment recorded a significant pay rise of 30.9%, increasing to an average monthly salary of RM3,600 in 2011 from RM2,750 the previous year. Similarly, ICT Software professionals in the senior executive and managerial categories also registered substantial increases in their average monthly salaries.
5.6 Comparison between ICT Industry Segments and ICT User Industries
There is no clear cut distinction in salaries earned by ICT professionals in the ICT industry segments and ICT user industries. As shown in Figure 8, the average monthly salary earned by junior ICT executives in ICT industry segments was RM3,275, which was 3.6% higher than their counterparts in the ICT user industries comprising banking, insurance, agriculture, manufacturing, oil and gas sector etc. Similarly, in the managerial category, the earning capacity of ICT professionals in the ICT industry at RM8,623 per month was higher by 7.2% than those working in the ICT user industries, who on an average took home RM8,045. In the senior executive level, however, ICT professionals in the ICT industry segments were 5.9% lower than their counterparts in the ICT user industries.
10,000 9,000 8,000
Ringgit Malaysia
8,623 8,045
4,778
3,162 3,275
5,076 4,778
8,045 8,623
Source: Jobstreet.com & PIKOM, 2012 Figure 8: Average Monthly Salary of ICT Professionals by Job Category and ICT User Industries and ICT Segments
Job Function Project Management ERP/ Business Applications Software Development Applications System Administration IT Security Analyst Source: Robert Walters Survey & PIKOM Research
8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 1 to 99 5,169 100 to 999 6,694
EMPLOYMENT SIZE
Source: ZDNet Asia, Active TechPros IT Salary Report 2011 & PIKOM 2012 Figure 9: Average Monthly Salary of ICT Professionals by Employment Size, 2011
25
6,700 6,600
Average Monthly Salary
1.7%
6,500 6,400 6,300 6,200 6,100 6,000 5,900 5,800 Klang Valley Monthly Salary 2011 6,671 Penang 6,559
GEOGRAPHICAL REGION
7.6%
Johor 6,097
Source: ZDNet Asia, Active TechPros IT Salary Report 2011 & PIKOM 2012 Figure 10: Average Monthly Salary of ICT Professionals by Geographic Locations, 2011
26
6. Regional Benchmarking
6.1 Comparison of Average ICT Professional Remuneration in Asian Countries
Figure 11 shows a comparative scenario on remuneration earned by ICT professionals in selected Asian countries. Here, average remuneration earned in each country is compared against Malaysia, giving rise to a scaling factor that is free from bias caused by foreign exchange fluctuation. For the purpose of this benchmarking exercise, Malaysia assumes a scaling factor of one. The data published by ZDNet Asia for the years 2010 and 2011 were used. All measurements are tallied in US dollars. The results showed that more advanced Asian economies, in particular Hong Kong and Singapore, recorded average remuneration which was 3.10 times and 2.52 times more than the average remuneration earned by Malaysian ICT professionals in 2011. Indeed, these figures registered an increase from 2.89 and 2.59 for Hong Kong and Singapore respectively in 2010, indicating that the salary gap in the region is widening. These two island nations, although small in size, remain attractive destinations for ICT professionals. The data also showed that the average remuneration for ICT professionals in Thailand marginally increased by 1.02 times in 2011 in comparison to only 0.93 times in the preceding year in comparison to Malaysia. Interestingly, the average remuneration for ICT professionals in China declined from a benchmarking ratio of 1.05 in 2010 to 0.95 in 2011 in comparison to Malaysia. Against India, the average remuneration for Malaysian ICT professionals gained ground with the ratio improving from 0.66 in 2010 to 0.72 in 2011.
3.50 3.00
Number of Times 3.10 2.39 2.52
2.89
0.93 1.02
1.00 1.00
1.05 0.95
0.72 0.66
0.47 0.43
0.37 0.34
THAILAND
MALAYSIA
CHINA
INDIA
PHILIPPINES
INDONESIA
2010 2011
2.89 3.10
2.39 2.52
0.93 1.02
1.00 1.00
1.05 0.95
0.72 0.66
0.47 0.43
0.37 0.34
Source: Robert Walters Survey, ZDNEtAsia & PIKOM 2012 Figure 11: Proportion of Average Monthly Salaries Earned by Selected Countries in Comparison to Malaysia, 2010- 2011
27
REGIONAL BENCHMARKING
Source: Pay Scale (http://www.payscale.com/research/) and PIKOM Table 6: Average Annual Salary of Senior Software Engineer / Developer / Programmer by Selected Developed Countries, 2011
28
Source: JobStreet.com Table 7: Job Employment Confidence Index: January 2001- March 2012
In Figure 12, over the last couple of years, the average annual JECI moved marginally up from 51.2 in 2010 to 51.6 in 2011, indicating increased confidence in the job market. However, the average JECI has dipped marginally in the first quarter of 2012 to 50.6.
29
60
50.1
50
50.4
51.2
51.6
JECI Index
45.2
45.8
49.3
50.6 47.7
40
36.1 34.1
33.6
2001 JECI 36.1
30
2002 34.1
2003 33.6
2004 45.2
2005 45.8
2006 50.1
YEAR
2007 50.4
2010 51.2
2011 51.6
2012 50.6
Source: Jobstreet.com and PIKOM Figure 12: Job Employment Confidence Index: 2001-2012.
In the formula above, f denotes the frequency expressed as percentage of responses netted or implicitly weighted, as such, =1 W denotes the values assigned for each response category and i denotes the industry. The values assumed for the various categories of responses were 5 for much better; 4 for slightly better; 3 for same; 2 for slightly worse and 1 for much worse. As such, the expected or implicitly weighted average for JOIS value will be 3; the average for the best case scenario where all the respondents indicate much better will be 5; similarly, the expected average for the worst case scenario, where all the responses indicative of much worse, would be 1. Source: PIKOM
30
1Q2012 1Q2011
19%
11%
11% 6% 5%
Much worse
Source: Jobstreet.com Figure 13: Job Outlook Perception First Quarter of 2011 and 2012
The results are shown in Figure 14. It can be seen that in Q1 2009, the JOIS was as low as 2.16 due to the Global Financial Crisis 2009 and this figure subsequently increased to 3.53 in Q1 2011 following the economic recovery. The job outlook sentiment has declined to 3.20 in the first quarter of 2012. The decline is likely attributed to the continuing economic turmoil engulfing much of the developed world, which is perceived by many to have negative implications on Asia including Malaysia.
3.8 Job Outlook Index Score (JOIC) 3.6 3.4 3.2 3.0 2.8 2.6 2.4 2.2 2.0 JOIC 2.16 3.52 3.53 3.20
Q1 2009 2.16
Q1 2010 3.52
Q1 2011 3.53
FIRST QUARTER BY YEAR
Q1 2012 3.20
Source: PIKOM, 2012 Figure 14: Job Outlook Score Index (JOSI): 2009-2012
31
43.6%
40%
30%
23.3%
24.6%
20%
10%
8.6%
0%
Hiring less, Were not hiring in the replace/ ll essential foreseeable future positions only
32
33
Qualified talent in project management with good communication skill sets are lacking in the financial industry. (Industry: Finance) The outlook is very challenging and competitive globally especially the hotel industry. (Industry: Hotels and restaurants) Job hopping by employees for better prospects and higher salary will continue to be the same as previous years. (Industry: Hotels and restaurants) The job outlook looks very promising because we have a very good forecast for next second and third quarter. (Industry: Manufacturing) The electronics industry is becoming more competitive due to fast changing technologies, increase in product pricing and higher salary demand among the younger workforce. (Industry: Manufacturing) The overall job market for Q1 is not improving due to uncertainty in the local economy. The food & beverage industry were also affected mainly due to weak purchasing power, competition and escalating raw materials prices. Therefore most companies are not focused on any expansion plans in the future. (Industry: Manufacturing) Even though certain industries are expanding due to higher consumer demand, palm oil / vegetable / edible oils continue with exponential growth especially for Malaysia and Indonesia. These major players may be hiring new blood but experience and knowledge of the industry per se is of vital importance. Employers are getting more and more choosier especially for senior positions. (Industry: Manufacturing) The oil and gas sector will be hiring aggressively to meet manpower demand for only a few projects at hand. (Industry: Mining - including oil, gas and petroleum)
34
8. Conclusion
In 2011, the ICT sector registered a significant growth in remuneration levels for its professionals. Given the positive economic outlook for Malaysia with a 5.1% growth in GDP in 2013 as forecasted by the World Bank - the ICT industry is set to flourish on the back of domestic demand created by several of the Governments mega projects and transformation programmes. Such organic growth is expected to generate wide-ranging employment opportunities for ICT professionals in the country. Based on this positive outlook, PIKOM has projected at least 9.0% growth in average remuneration offered to ICT professionals in 2012. It should be noted that the ICT sector is still being plagued by the shortage in the supply of ICT graduates especially those deemed employable and who have skills sets compatible with industry needs. On top of this problem, the ICT industry continues to be hampered by poor quality broadband in terms of capacity, speed and price. It is imperative that the Government address the deficiencies in broadband infrastructure so as to accelerate the ICT sector into a new level of value creation through cloud computing, outsourcing, e-commerce, high-end micro-electronics research and development. The capability and capacity building of the ICT sector could become a critical issue given that ICT professionals with high-end technical skills could opt for jobs in neighbouring countries such as Hong Kong and Singapore or English-speaking developed countries where the average salaries are at least two times higher than in Malaysia. Within the country, there continues to be a strong tendency among ICT professionals to job-hop. This poses challenges to the area of employee retention as well as to the industry as a whole as job-hopping could affect effective growth. Despite a generally positive economic and ICT industry outlook as well as an upward trend in the salaries of ICT professionals, the perception of job seekers on the local job market appear to slide for the first Quarter of 2012, as gathered from Jobstreet.com probes.
35
Persatuan Industri Komputer Multimedia Malaysia (The National ICT Association of Malaysia) 1106 & 1107, Block B, Phileo Damansara II No.15, Jalan 16/11, 46350 Petaling Jaya Selangor Darul Ehsan T +: (603) 7955 2922 F +: (603) 7955 2933 E+: info@pikom.org.my W+: www.pikom.org.my PIKOM, the National ICT Association of Malaysia, is a not-for-pro t organisation. It is the largest association representing information and communications technology (ICT) players in Malaysia. Since its inception in 1986, PIKOM has come of its age as the voice of ICT industry. It has become an ICT referral centre for government and industry players, as well as international organisations. In this regard, PIKOM takes on the responsibility to publish ICT-relevant information in a periodic manner.
Design, production and printing by: MJLAIKC INFOWORKS | Tel: 6012 5050862 | E: mjlaikc@gmail.com