NATIONAL TRANSFORMATION

Transcription

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2 1 NATIONAL TRANSFORMATION

3 THE NEW ECONOMIC MODEL Page 3

4 KEY POINT ON THE NATIONAL AGENDA Chapter 5: Developing and Retaining a First-World Talent Base The Government aims to achieve a target of 33% of the workforce being employed in the higher skilled jobs bracket by 2015, and up to 50% by 2020 Launched in September 2010 Focused on 12 National Key Economic Areas (NKEAs) Creation over 3.3 million new jobs by 2020 Page 4

5 STRATEGY AND FOCUS 6 Strategic Reform Initiatives (SRIs) Competition, Standards and Liberalisation (CSL) Pbulic Finance Reform (PFR) Public Service Delivery (PSD) Narrowing Disparity (ND) Reducing Government s Role in Business (GRiB) Human Capital Development (HCD) 12 National Key Economic Areas (NKEAs) Oil, Gas and Energy Palm Oil and Rubber Financial Services Tourism Business Services Electronics & Electrical Wholesale and Retail Education Healthcare Communications Content and Infrastructure Agriculture Greater Kuala Lumpur / Klang Valley 5

6 HUMAN CAPITAL DEVELOPMENT Human capital development lies at the foundation of transforming Malaysia from middle income to high-income 10 th Malaysia Plan Talent is the most important ingredient in Malaysia s strategy to become a high-income, knowledge intensive and Innovation-led economy human capital word used 45 times Human capital development will focus on creating talent through enhancing skills and competency of the nations human resources talent word used 234 times 6

7 HUMAN CAPITAL DEFINED Adam Smith: "The stock of competences, knowledge and personality attributes embodied in the ability to perform labour so as to produce economic value. It is the economic value of employees knowledge, skills and capabilities gained through education and experience. Page 7

8 THE HCD JOURNEY Middle Income High Income 28% 44.5% Finland 42.9% Australia 50% % Singapore 1851 days 159,926,400 seconds 2,665,440 minutes 44,424 hours 264 weeks and 3 days

9 BIGGEST CHALLENGE # 1 ESCAPING THE MIDDLE INCOME TRAP Page 9

10 BIGGEST CHALLENGE # 2 CREATING 3.3 Millions in High Paying Jobs NKEAs and CERs (50% at Level 4) Source: PEMANDU Page 10

11 SKILLED OR BE KILLED Page 11

12 2 THE NEED FOR SKILLED WORKERS

13 DEFINITION OF SKILLED WORKERS The Malaysia Standard Classification of Occupations 2008 (MASCO-08) defined skill as: The ability to perform tasks and duties of an occupation 2 skill dimensions: Skill Level A function of the complexity and range of tasks and duties involved Skill Specialisation The field of knowledge required, the tools and machinery used, the material worked on or with, the kinds of goods and services provided. 13

14 WHO ARE THEY? SKILL LEVEL EDUCATIONAL GROUP MAJOR GROUPS The concept of skill level is not applicable to this group. 0. Armed Forces 1. Managers For these two groups, the skill level concept does not reflect the main skill requirement for distinguishing them from other Major Groups. Fourth Tertiary education leading to a University or postgraduate university degree; Malaysian Skills Advanced Diploma (DLKM) Level Professionals Third Tertiary education leading to an award not equivalent to a first University Level; Malaysian Skills Certificate (SKM) Level 4, or Malaysian Skills Diploma (DKM) Level 4 3. Technicians and Associate Professionals Second Secondary or post-secondary education; Malaysian Skills Certificate (SKM) Level Clerical Support Workers 5. Service and Sales Workers 6. Skilled Agricultural, Forestry and Fishery Workers 7. Craft and Related Trades Workers 8. Plant and Machine-operators and Assemblers First Primary education 9. Elementary Occupations Page 14

15 THE SUPPLY Source: Labour Force Survey Report 2013, DOS Page 15

16 THE DEMAND Services sector (86.6%) Wholesale & retail trade sector (51%) Accommodation & food sector (13%) Construction (6.4%) Manufacturing (5.5%) Others Source: ILMIA / NER 2011 Survey 12/8/

17 WHERE THEY FIT IN Source: ILMIA / NER 2011 Survey Page 17

18 No Formal Education Primary Secondary Tertiary Percentage EMPLOYED PERSONS BY EDUCATIONAL ATTAINMENT 2013 = 13,634, = 13,119, Source: Labour Force Survey Report 2013, DOS 12/8/

19 MANPOWER REQUIREMENT: 3 THE CASE OF GREATER KL / KLANG VALLEY NKEA

20 GREATER KUALA LUMPUR / KLANG VALLEY NKEA The Greater Kuala Lumpur/Klang Valley (GKL/KV), one of the 12 NKEAs under the ETP, is seen as a driver of growth for the remaining 11 NKEAs 9 Entry Point Projects and 2 Business Opportunities to catalyse efforts towards achieving goal in transforming GKL/KV into top 20 most liveable metropolis globally in terms of economic growth 12/8/

21 EMPLOYED PERSONS BY EDUCATIONAL ATTAINMENT, Kuala Lumpur Selangor Malaysia Tertiary ( 24.5%) Services sector main GDP contributor (73% against Malaysia s 56%); employing 75% The labour force in GKL/KV 28% of the total labour force in Malaysia The females in the labour force 41%; national average 38% Tertiary education 35%; national rate 25%; 41% of Malaysia s labour force More than half below the age of 35 Source: ILMIA/ Labour Force Survey Report 2013, DOS Page 21

22 WHAT GKL / KV REQUIRES Hiring people in mid-level positions with relevant positions all 5 sectors Prefer to hire fresh graduates with industry exposure, either through internships or hands-on experience in the industry prior to graduation For experienced hires, companies requires talent with relevant experiences within similar/competing industry Talent shortage in Supply Chain and O&G due to competition from Singapore and Middle East Source: ILMIA Page 22

23 COLLABORATION IS THE KEY There have been various initiatives from the industry, academia and the government to boost the supply and enhance the quality of talent to meet industries demand. These initiatives will need to be monitored and, where possible, re-assessed from time-to-time to meet the changes in demand. Academia and industry collaboration will need to be continued to ensure that the supply of graduates are meeting the requirements of relevant industries. 23

24 SUPPORTING HCD PROGRAMMES (by Other Ministries / Agencies / Private) INDUSTRY LED BY PROGRAMME TRANSPORTATION MRT Corp Klang Valley Mass Rapid Transit Offset Program Supply Chain MIGHT & Thales PEMANDU & MIGHT- Meteor Advance Mfg SB MARA & UniKL KTMB MIT Centre for Transportation & Logistics and the Government of Malaysia UiTM & MITRANS Malaysian Rail Supporting Industry Roadmap 2030 National Talent Enhancement Program Proposed Institute of Railway Technology Malaysia Railway Academy (MyRA) Malaysia Institute of Supply Chain Innovation (MISI) Malaysia Research Centre for Logistics & Supply Chain (MaRCeLS) QUALITY Source: COMPETITIVENESS ILMIA, 2014 AND INNOVATION 24

25 SUPPORTING HCD PROGRAMMES (by Other Ministries / Agencies / Private) INDUSTRY LED BY PROGRAMME SSO - KPO MDeC MSC Malaysia MyProCert Program TalentCorp BNM BNM & SCM Upskilling Programs Financial Sector Talent Enrichment Program Financial Services Talent Council International Centre for Education in Islamic Finance Asian Institute of Finance Source: ILMIA,

26 SUPPORTING HCD PROGRAMMES (by Other Ministries / Agencies / Private) INDUSTRY LED BY PROGRAMME OIL & GAS (Upstream) Malaysia Petroleum Resources Corporation PETRONAS and other Petroleum Arrangement Contractors PETRONAS University Pavillion Programme for the Development of Ingenious Young Talent (PRODIGY) Integrated Oil and Gas Training Centre Shell Malaysia Selangor Human Resource Development Centre Asia Pacific Wells Learning Hub SHRDC Upskilling Programmes Source: ILMIA,

27 NATIONAL DUAL TRAINING SYSTEM: ACCREDITED CENTRE TYPE NDTS ACCREDITATION AS AT (as at OCT) 12/8/2014 TOTAL ORG GLC TRG CENTRE MNC SME 2, ,232 GOVT AGENCY ASSOCIATION TOTAL 2,851 1,449 4,304 PUBLIC PRIVATE 1, ,051 TOTAL 1, ,310 Target 3.3m NKEA 50% = 1,650,000 1,650,000 / 6,614 = 249 trainees need to be trained per AC 27

28 NDTS PARTICIPATION BY APPRENTICE AND COMPANY Normal Special In-House Training Incentive Level Upgrading TYPE AS AT (AS OCT) TOTAL APPRENTICE 30,168 2,608 32,776 COMPANY 1, ,743 APPRENTICE 10,209 2,627 12,836 COMPANY APPRENTICE 8,688 2,907 11,595 COMPANY APPRENTICE 1, ,289 COMPANY APPRENTICE ,687 COMPANY TOTAL PARTICIPATION APPRENTICE 51,731 9,452 61,183 COMPANY 2, ,661 PERSONNEL TRAINED 11,740 3,406 15,146 12/8/ trainees per company 28

29 RECOGNITION OF PRIOR EXPERIENTIAL LEARNING (RPEL) RPEL is a process to enable workers to get paper recognition and qualification based on their current skills, knowledge and competency. RPEL broadens the access by enabling employees recognised by certification programmes based on their current experience. Page 29

30 CURRENT ACHIEVEMENT Skill Level TOTAL AC NDTS RPL NDT Total Level 1 565,720 24,710 3,133 1, , ,706 Level 2 505,430 29,070 4,499 1, , ,008 Level 3 180,825 16,463 1,051 4, , ,446 Level 4 25,188 3, ,618 28,806 Level 5 1, ,908 Total 73,578 8,707 7, ,983 1,368,874 Level = 1,338,160 (97.8 %) 12/8/

31 4 WORKFORCE AND WORKPLACE TRANSFORMATION: ROLE OF HRDF

32 1. Modernise labour legislation 2. Enhance labour safety net by introducing unemployment insurance 3. Strengthen human resource management Workforce Transformation 1. Focus on upskilling and upgrading the workforce 2. Leverage on women s talent to increase productivity 3. Undertake a labour market forecast and survey programme Page 32

33 HRDF IN NUMBERS SERVICES MANUFACTURING MINING & QUARRYING TOTAL 38 SUB-SECTORS 23 SUB-SECTORS 7,681 REGISTERED EMPLOYERS 7,166 REGISTERED EMPLOYERS 2 SUB-SECTORS 18 REGISTERED EMPLOYERS 63 SUB-SECTORS 14,865 REGISTERED EMPLOYERS 815,093 EMPLOYEES COVERED 957,479 EMPLOYEES COVERED 3,643 EMPLOYEES COVERED 1,776,215 EMPLOYEES COVERED *As at 18 November 2014 Page 33

34 STATISTICS ON APPROVED TRAINING PLACES AND FINANCIAL ASSISTANCE BY SKILL AREAS FOR THE YEAR 2013 APPROVED TRAINING PLACES FINANCIAL ASSISTANCE Financial Accounting 1% Sales / Marketing 1% Strategic Management 1% Executive Development Programme 2% Operation Management 3% Human Resources Management 3% Supervisory 4% Communication & Public Relations 5% Others 23% Management 5% Quality & Productivity 20% Occupational Safety & Health 15% Technical 10% Computer / Information Technology 7% Financial Accounting 2% Others 16% Sales / Marketing 2% Strategic Management 2% Executive Development Programme 3% Human Resources Management 3% Operation Management 3% Supervisory 4% Communication & Public Relations 4% Management 6% Computer / Information Technology 12% Quality & Productivity 16% Occupational Safety & Health 11% Technical 16% TOTAL APPROVED TRAINING PLACES 781,438 TOTAL FINANCIAL ASSISTANCE RM million Page 34

35 ESTABLISHMENT OF SECTORIAL TRAINING COMMITTEES (STCs) SUPPLY DEMAND TRAINING PROVIDERS SUPPLY QUALITY TRAINING REGISTERED EMPLOYERS GIVE FEEDBACK ON TRAINING NEEDS STC GATHER INPUT ON TRAINING NEEDS The main objective of the STCs is to identify training needs that corresponds with the advancement of technology, system and processes in the subsectors that are covered under the PSMB Act, 2001 in order to enhance the employers levels of productivity and competitiveness. Page 35

36 SMEs needs help 36

37 Case for Change Current Situation of SMEs in Malaysia CURRENT SITUATION OF SMEs IN MALAYSIA Size of Company Micro Small Medium Large MNCs Total companies in Malaysia 98% 2% Workforce 57.5% 42.7% GDP Contribution 33.1% 66.9% Business Challenges Survival Be competitive and business growth Long term sustainable growth HR Priorities Minimal Basic Intermediate Advanced Source: SME Annual Report 2013/

38 NATIONAL HUMAN RESOURCES CENTRE (NHRC) The National Human Resource Centre (NHRC) primarily supports the national agenda of strengthening Malaysian SMEs by providing industries with strategic and operational HR competencies. The NHRC has been set-up as a one-stop centre to offer advisory and consultancy services to SMEs relating to HRM matters. Page 38

39 HOUSEWIVES ENHANCEMENT AND REACTIVATE TALENT SCHEME (HEARTS) HEARTS is established to increase the percentage of employable women in the labour market from 46% to 55% in order to achieve a developed nation status by 2020 OBJECTIVE To train educated homemakers/housewives in the latent workforce in specialised fields that would enable them to actively participate in the economic growth of the country while maintaining their status quo as homemakers/housewives. To provide a platform for homemakers/housewives to acquire new skills that would enable them to work from home and contribute to the increase of the household income. Page 39

40 NATIONAL HUMAN RESOURCES STANDARDS (NHRS) The National Human Resources Standards (NHRS) is to provide a guideline to all HR professional regarding best practices in Human Resources Management (HRM) and the knowledge and skills that they should have in performing as HR professionals successfully. The objectives of NHRS is to: Outline what constitutes best practices in HRM Provide a framework by which organisations can judge the success of their HR practices Provide a framework of knowledge, practice and professionals engagement required across HR professional careers Page 40

41 Raising the Bar of HR Profession in Malaysia Why raise the bar? Malaysia needs to attract, develop and retain top talents to be high income developed nation by 2020 The HR Profession needs to address the talent needs of the nation Competent HR Professionals will be able to improve the workplace practices and talent management initiatives Where are we now? Low awareness of Certification in HR Employers do not place the importance on upskilling and certifying HR Professionals Employers do not see the value of HR Professionals as business partners

42 HR Institute Malaysian Institute of Human Resource Management (MIHRM) Chartered Institute of Personnel and Development (CIPD) Society for Human Resource Management (SHRM) Australian Human Resources Institute (AHRI) Country Number of Certified HR Practitioners in 2014 (estimated) Malaysia 112 UK 1000 USA 22 Australia Nil TOTAL 1,134 Compared to 30,000 Qualified Accountants (registered with MIA)

43 Establishment of HR Certification Steering Committee 13 December 2013 MANDATE The Mandate is to establish National HR Standard for HR Certification Program to ensure quality and business relevance of HR practices & Professionalizing HR practitioners.

44 What HR practitioner has to do? HR Standards: Preparing HR practitioners for business success! He /She must know the company business as well as the HR Standards

45 Use of HR Standards As the basis for 1) Educational and Training Programs. 2) HR and L&D Professional Assessments. 3) Accrediting prior Certificated Learning. 4) Mapping against International HR Standards. 5) Continuing of HR Professional Development. 6) Awarding HR/L&D Leaders and organizations based on specific National HR Standards.

46 Framework of National HR Standards

47 The Five Dimensions of NHRS

48 The Scope of The Five Dimensions Of NHRS

49 Summary Of HR Professional Level Definitions

50 Syndication with HR Community March 2014 April May June July August 2014 Sharing Session with Academia Briefing to School of Business Management academics UUM Focus Group Discussion & Workshops Syndication with prominent industry partners and business owners Briefing to Prominent Employer Association Sharing of ideas with FMM HRM Committee Engaging with SMEs HR Forum, Seminars, and Training session with local HR Practitioners Briefing to Employer Trade Association Sharing session with MEF Emerging Practices Committee Presentation to Ministry of Human Resources (MOHR) Discussion with Policy Division of MOHR 1500 HR Professionals engaged and syndicated

51 What s Next for NHRS September 2014 October 2014 November 2014 Validation of the NHRS National Seminar on HR Standards and submission of the NHRS to MoHR Launch of National HR Standards Syndication with MEF, UEM, MCMC, Sime Darby, FMM, Intan, ASEAN Institute ofbankers,noss,mi M,MIHRM,MTUC Sharing Session of 5 Dimensions with HR Professionals (16 October 2014) Submission of NHRS to MoHR HRDF Conference & Exhibition in Kuching (4 November 2014) Launch of HR Standards by YB Minister of Human Resources Announcement that HRDF will only fund/endorse HR programmes complying with HR standards

52 Moving Forward recommendation December 2014 March 2015 Formation of Certification Board and the Secretariat Recognition and funding Launch of The HR Certification Board As suggested by The Policy Division on the setting up of Certification Board comprising relevant stakeholders. Recognition of Certification Programmes complying to the NHRS March 2015 The moving forward recommendation by HR Steering Committee will be put forward to Ministry of Human Resources to take responsible for the NHRS. Launch of HR Certification Board by YB Minister of Human Resources.

53 5 EFFECTIVENESS OF HRDF

54 TRAINING AND RE-TRAINING BOOST FOR PRODUCTIVITY AND PROFITABILITY The enactment of HRDF was instrumental in promoting increased enterprise training among all firms, but especially among medium size companies. Technological change also had a role in inducing enterprise training, but the overall contribution of HRDF was much larger. The resulting increase in training investments, whether induced by HRDF or by adoption of new technology, had strong demonstrated impacts on productivity growth, especially when training was continuous rather than episodic, and when training was accompanied by complementary investments in new technology. Source: World Bank Institute (1997) 12/8/

55 TRAINING AND RE-TRAINING BOOST FOR PRODUCTIVITY AND PROFITABILITY The productivity impact of skills training is twice as high in firms with new technology as it is in forms without new technology. Training is simply more profitable (productive) in larger firms, possibly because larger employers are also more likely to use new technologies requiring skilled and trained workers. Productivity growth is enhanced by repeated episodes of skills training. Source: World Bank Institute (1997) 12/8/

56 THE NET IMPACT OF 1% LEVY CONTRIBUTION FOR SMEs NET IMPACT OF HRDF It is found that training programmes by HRDF indicated a strong positive impact including effects on productivity (Total Factor Productivity and Labor Productivity). The highest impact was on investment in machinery and equipment and capital intensity followed by increase in value added and TFP. This programme also showed increase in labor productivity and wages. Source: World Bank baed on cencus and survey from Department of Statistics, Malaysia SME Masterplan Page 56

57 TRAINED vs NON-TRAINED EMPLOYEES Only 34% of respondents agree that trained employees are likely to receive salary increase. More motivated than non-trained employees More productive than non-trained employees More likely to be promoted than non-trained employees More likely to receive a salary increase than non-trained employees Source: Study on the Effectiveness of Training Incentive Scheme (2011/2012 Allocation) by Frost & Sullivan Page 57

58 THE IMPACT OF TRAINING FOR SMEs Positive impact on employees is observed by majority in areas of knowledge, skills, productivity, job motivation, and levels of absenteeism TRAINING Reduced Levels of Absenteeism (Sick Leaves and No-Shows) Enhanced Job-Relevant Knowledge and Skills Noticeable improved productivity Increased Job Motivation of Trained Employees Source: Study on the Effectiveness of Training Incentive Scheme (2011/2012 Allocation) by Frost & Sullivan Page 58

59 6 WAY FORWARD

60 MOVING FORWARDS HRDF moving towards more certification programmes: To support National aspirations towards 50% skilled workers by To encourage existing employers to train employees through certification programmes recognized by professional bodies. To increase knowledge and skills among employees, hence the productivity of the company will increased as well. Page 60

61 1MALAYSIA GLOBALLY RECOGNISED INDUSTRY AND PROFESSIONAL CERTIFICATION PROGRAMME (1MalaysiaGRIP) To intensify upskilling and reskilling programmes, the Government will introduce a new programme, namely Globally Recognised Industry and Professional Certification Programme or 1MalaysiaGRIP with an allocation of RM300 million in matching grants between the Government and the Human Resources Development Fund to train 30,000 workers... The 2015 Budget Speech by YAB Prime Minister Page 61

62 7 CONCLUSION

63 Human resource development in particular skills development is a shared responsibilities : Governments have primary responsibility for education, preemployment training, core skills, and training the unemployed and people with special needs. The social partners play a significant role in further training, workplace learning and on-the-job training. Individuals need to take advantage of education, training and lifelong learning opportunities. Source: ILO Recommendation on Human Resources Development, 2004 (No. 195) 12/8/

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65 PEMBANGUNAN SUMBER MANUSIA BERHAD ( D) Wisma HRDF, Jalan Beringin, Damansara Heights, Kuala Lumpur Tol Free Line: General Line: General Fax: HRDF Portal: NHRC Portal: Facebook: MY HRDF BRANCHES OFFICE NORTHERN BRANCH Tingkat 2, Wisma PERKESO Lebuh Tenggiri 2, Bandar Seberang Jaya Pulau Pinang Tel: , , & Fax: & JOHOR BRANCH No. 50 & 50-01, Jalan Setia 3/7 Taman Setia Indah, Johor Bahru Johor MELAKA BRANCH Lot 4-04, Wisma UTC Jalan Tan Chay Yan Off Jalan Hang Tuah Melaka Tel: Fax: SABAH BRANCH Lot B5, Tingkat 5 Bangunan KWSP, Kota Kinabalu Sabah SARAWAK BRANCH Wisma PERKESO Level 4, Lot 436, Section 54, No. 52 Travilion Commercial Centre Padungan Kuching, Sarawak Tel: , Fax: EAST COAST BRANCH Cawangan Pantai Timur, Pusat Latihan Hospitaliti Cherating, Perkampungan Cherating Lama, Kuantan, Pahang Tel: , Fax: About HRDF Tel: , Fax: Tel: Fax: The Human Resources Development Fund (HRDF) is administered by Pembangunan Sumber Manusia Berhad (PSMB), an Agency under the Ministry of Human Resources, via the Pembangunan Sumber Manusia Berhad Act, Its vision is to be the driving force in training and development of the workforce while its mission is to enhance workforce knowledge, skills and capabilities through effective management of its fund. The objective of the HRDF is to encourage employers covered under the Pembangunan Sumber Manusia Berhad Act, 2001 to retrain and upgrade the skills of their employees, apprentices and trainees in line with their business needs and the development strategy of the country.