The document provides an overview of the Malaysian economic outlook and ICT industry outlook for 2013. It notes that the Malaysian economy grew at an average rate of 5.2% in 2012 and the government has projected growth of 4.5-5.5% for 2013, though various other institutions have issued differing predictions. It also discusses positive growth forecasts for the ICT industry in 2013, with expanding demand expected for areas such as system integration, cloud computing, and data analytics. Regional salary comparisons are also presented.

1. PUBLISHED BY IN COLLABORATION WITH
ICT JOB MARKET OUTLOOK
IN MALAYSIA
JUNE 2013

3. ICT Job Market
Outlook in Malaysia
June 2013
Published by:
In collaboration with

4. COPYRIGHT
Copyright © 2013. 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.
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: June, 2013
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, KPMG Malaysia
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 user’s 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.

5. iii
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Contents
Message by PIKOM Chairman iv
Message by PIKOM President/CEO v
Preamble 6
Malaysian Economic and ICT Industry Outlook 9
ICT Job Market Salary Trends 14
Regional Benchmarking 25
Employment Outlook and Perceptions 28
Rethinking HR in a Changing World: A Practitioner’s Discourse 33
The Right Talent Development Strategy for Top Talents? 39
Closing The Demand-Supply Gap in ICT Talents 44

6. iv
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Message by PIKOM Chairman
WOON TAI HAI
In its endeavour to champion the Information Communications Technology (ICT) industry, PIKOM has once
again successfully produced the annual “ICT Job Market Outlook in Malaysia” report. This outlook is made
possible with the continuing support of Jobstreet.com and KPMG. In order to provide more comprehensive
information, due references have also been made to PayScale web-based information, wherever possible.
As in the past, the typical information published includes average monthly salaries of ICT professionals, job
sentiment index, top paying ICT jobs, hot ICT jobs in demand and the hiring outlook. The salary information is
broken down by industry, job category, employment size and geographical location. As an additional feature,
this series is accompanied by median data for various types of job functions, gender and years of working
experience. Regional data on selected Asian countries and English speaking nations that Malaysia has close
diplomatic and trade ties, is provided once again. This time, however, besides atlas based criterion the
publication also included Purchasing Power Parity (PPP) adjusted salary information that essentially takes
into account foreign exchange fluctuations and inflation rates as well as living standards and costs.
As the PIKOM Research Committee Chairman, I would like to see more effort taken in addressing the human
capital development issues and challenges. From the employees’ perspective, the issues and challenges
of talent migration to better paying destinations are still affecting the industry. As reflected once again in
this outlook, countries such as Hong Kong, Singapore and China in Asia and Australia, New Zealand and
United States of America in the English speaking world have a much higher capacity for remuneration which
is bound to attract competent Malaysian ICT professionals. If timely efforts are not taken in addressing
this dilemma, it will be harder for the industry and the nation as a whole to become globally competitive
and productive. On the other hand, employers are equally facing a quandary in getting industry ready ICT
graduates. Employers are hesitant to invest in training or equipping fresh graduates with the right skills and
knowledge in an employment environment where job hopping is highly prevalent. To overcome this problem,
the industry needs to put in place appropriate strategies and measures that can help to enhance staff loyalty.
Obviously, competitive remuneration is one of the options for staff retention.
PIKOM would like to take this opportunity to record its sincere thanks and appreciation to Jobstreet.com and
KPMG for their invaluable contributions. PIKOM is optimistic that these industry partners will continue to
offer their enduring support in the years ahead. PIKOM believes that with its expanded scope and coverage,
this outlook will continue to serve its members, industry players and investors, as well as mainstream policy
formulators.

7. v
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Message by PIKOM President/CEO
SHAIFUBAHRIM SALEH
PIKOM is once again pleased to publish the annual “ICT Job Market Outlook in Malaysia” report. As in the
past, this series continues to provide information on average monthly salaries earned by information and
communications technology (ICT) professionals in Malaysia in 2012.
The report revealed that the ICT job market in Malaysia is expanding and evolving in tandem with the growing
demand for information age services such as system integration, cloud computing, data warehousing,
software development as a service (SaaS), platform as a service (PaaS), web and portal development, multi-
media content provision, big data analytics and networking.
In meeting the changing demands of the industry and human capital requirements, PIKOM has reviewed and
realigned its five-year strategy plan during its 2013 planning session. Specifically, human capital development
is positioned as one of the six key strategies. The others include enhancing value to members, accelerating
growth demand, leading the digital trend and increasing competitiveness and globalisation of the Malaysian
ICT industry. In human capital development, PIKOM has embarked on programmes to publicise ICT courses
through social media networks, re-skill the current talent pool, conduct cross-disciplinary training, promote
industrial guided projects for students and to attract Malaysian talents from overseas as well as the Board of
Computing Professionals Malaysia (BCPM).
Once again, I would like to take this opportunity to record my sincere appreciation to Jobstreet.com and
KPMG for their effort in making this publication into another milestone for PIKOM.

8. 6
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Preamble
PIKOM, the National ICT Association of Malaysia, has once again taken the lead to compile the “ICT Job Market
Outlook in Malaysia, 2013” in collaboration with JobStreet.com and KPMG. PIKOM was mainly responsible
for data collation and coordination over and above its provision of ICT industry-specific information and
outlook. On its part, Jobstreet.com provided the latest salary report of ICT professionals by industry, job
market outlook in the respective ICT segments, and survey-based economic perception of job seekers and
industry players. Meanwhile, KPMG took on the task to present Malaysia’s economic outlook.
For regional comparisons, due references were made to web published salary information by PayScale Salary
Report. The average salary of ICT professionals in Malaysia is compared against selected Asian and English
speaking countries that have become attractive destinations for Malaysian talent migration or talent soliciting.
The Asian countries considered in the report include Singapore, Indonesia, Thailand, Philippines, Malaysia,
China, Korea and India. The English speaking nations covered include United States of America, United
Kingdom, Canada, Australia and New Zealand.
PIKOM is the national representative of the information and communications technology (ICT)
industry with more than 1,500 members as at end of 2012. 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 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.

9. 7
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
The main objective of this report is to provide data and information on the following:-
i. Average ICT Salaries by Industry
• Agriculture / Plantations / Aquaculture
• Automotive / Heavy Industry / Machinery
• Banking Institutions
• Chemical Industries
• Construction / Building, including Civil Engineering
• Consulting, both Business and Technical
• Private Education
• Electrical & Electronics Sector
• Financial Services / Securities / Insurance/
• Hotel / Restaurant / Food Services
• Manufacturing
• Oil / Gas / Petroleum Industries
• Printing / Publishing
• Property / Real Estate
• Technology / Aerospace / Bio-technology
• Semiconductor / Wafer Fabrication
• Services
• Telecommunication
• Textiles / Garment
• Transport / Storage / Freight / Shipping
• Utilities
• Wholesale / Retail / Trading
• Call Centre / ICT-Enabled Services
• Computer / ICT (Hardware)
• Computer / ICT (Software)
ii. Average Monthly Salaries of ICT Professionals by Job Category
• Overall ICT Professional
• Junior ICT Executive – fewer than 4 years of experience including fresh entrants
• Senior ICT Executive – 5 years and above of working experience
• Middle ICT Manager – as declared by the job seekers
• Senior ICT Manager – as declared by the job seekers
iii. Average Monthly Salaries of ICT Professionals by Key ICT Industry Segments
• ICT Hardware
• ICT Software
• Call Centre
iv. Top 10 Specialisations Sought
v. Regional Benchmarking with Selected Asian Economies
vi. Perception by Job Seekers and Employers
• Jobstreet.com Employee Confidence Index (JECI)
• Anticipated Hiring Activities
• Top 10 Specialisations Sought
• Position Level Sought

10. 8
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
It is pertinent to note that the average monthly salary of ICT professionals for 2012 was RM6,784, registering
an increase of 8.7% from RM6,240 the previous year. The record also showed that the ICT professionals
in the Senior Manager, Middle Manager and Senior Executive categories experienced significant pay rise
of 14.1%, 9.9% and 9.6% respectively in 2012. It is also observed that the salary gap between the Senior
Managers and the fresh graduates has widened from 5.44 times in 2011 to 5.71 times in 2012. Such trends
are considered unhealthy for the ICT industry where the employment market has been tight over a number of
years and, as such, the industry will continue to face problems in retaining its younger staff from job hopping
in search of higher remuneration.
Likeinthepreviousyears,theoilandgassectorcontinuedtobeoneoftheattractivesectorsforICTprofessionals,
especially those in the junior categories. In terms of geographical locations, the study discovered that the
typical salaries of ICT professionals in major cities like Kuala Lumpur and Cyberjaya is 1.75 times higher than
of those who work in smaller cities like Ipoh or Kuching. Such disparity is likely to continue in accentuating
youth migration to cities that are already overcrowded. The data also showed that big companies tend to pay
as high as 1.88 times more than those in the small and micro categories which have less than 10 employees.
The study also interestingly revealed that male ICT professionals earn, on average, 34% higher salary than
their female counterparts.
Among the various types of job functions investigated, those in ICT Project Management tend to earn
significantly higher salary than those in the technical or engineering fields. For instance, in 2012 a typical
ICT Project Manager earned an average monthly salary of RM9,700, which is almost twice of that earned by
a Junior Software Engineer or 50% more than that of a Senior Software Engineer.
Besides publishing average annual salaries earned by ICT professionals in seven Asian countries, namely
Hong Kong, Singapore, China, Thailand, India, the Philippines and Indonesia, the report also provides
data for five English speaking nations namely United States, United Kingdom, Canada, New Zealand and
Australia that typically attract Malaysians for employment. For making meaningful comparisons, the regional
salary data took into consideration the Purchasing Power Parity (PPP) factor. Instead of just publishing the
average annual salaries, once again the reporting is done in terms of scaling numbers, which essentially
highlighted how many times higher or lower the salaries are compared with other regional markets. Among
Asian countries, Hong Kong once again topped the salary scale, where the salary was 1.90 times (with
PPP adjusted) higher or 2.53 times (without PPP adjustments) higher than their counterparts in Malaysia
in 2012. Similarly, Australia and USA topped the list among the English speaking destinations. Specifically,
ICT professionals in Australia netted 3.76 times (without PPP adjustments) higher or 1.90 times (with PPP
adjusted) higher than the data reported for Malaysians in this report.
Hot ICT jobs varied across technical, business applications and soft skills categories. In the technical domain,
ICT professionals equipped with Java, C#, C++, dotNet, SharePoint and Web Application Developers are
highly sought after. Under business applications, the notable fast growing jobs are IT Security Analyst and
Big Data Analytics for fending off cyber threats and culling out customer insights from petabytes systems
respectively. The demand for both the technical and business applications jobs are attributed to prolific
growth experienced in cloud computing and mobile applications.
The report also carries information on the perception of job seekers and potential employers, in particular
pertaining to economic performance and ICT job market outlook as gauged by Jobstreet.com on a regular
basis. Generally the job seekers and providers indicated a positive outlook for Malaysia in 2013.

11. 9
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Malaysian Economic and
ICT Industry Outlook

12. 10
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
The Malaysian economy grew at an average rate of 5.2% in 2012. The Government of Malaysia has projected
an economic growth of between 4.5% and 5.5% in 2013 (Figure 1). However, Malaysia’s economic growth
predictions for 2013 vary widely among private financial institutions, international agencies and research
institutions. Specifically, the Malaysian Institute of Economic Research (MIER) has predicted continuity of
resilience in the Malaysian economy in 2013 with a growth rate of 5.6%. The economic growth predictions
made by Royal Bank of Scotland and the Overseas Chinese Banking Corporations (OCBC) were 5.5% and
5.2% respectively, which were much higher compared to other private institutions. The predictions made by
International Monetary Fund (IMF), Asian Development Bank (ADB) and World Bank (WB) were 4.7%, 4.8%
and 5.0% respectively, which is significantly lower than MIER, citing the effect on the export market by the
continuing global economic slowdown as the key reason for the lower forecast. Although Malaysia’s growth
rate was lower than expected at 4.1% in Q1, 2013, the economy is expected to rebound with economic
improvement in the US and positive growth in China.
-10
-8
-6
-4
-2
0
2
4
6
8
10
12
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
9.0 8.9 9.2
7.3
6.1
8.9
0.5
5.4
5.8 5.3
5.8
6.5
4.7
6.8 6.8
5.1 5.2
5.5
-1.7
-7.4
9.5 9.9 9.8 10.0
Pre Asian Financial Crisis 1997: 9.2% p.a.
Pre Global Financial Crisis 2009: 5.6% p.a.
Projected to grow by 5.5% p.a. in 2013 by Economic Report
Figure 1: Malaysia’s GDP Growth (%): 1990-2013
However, PIKOM is optimistic and concurs with MIER’s prediction of 5.6%. The resilience in the Malaysian
economy is poised to continue in 2013 and can be attributed to the following factors:-
i. strong domestic demand arising from economic transformation programmes and on-going mega projects;
ii. increased export earnings owing to strengthening of Ringgit Malaysia against US dollars;
iii. stable overnight lending rates stimulating business investments;
iv. sustained private and public consumption and expenditure;
v. low inflation rate;
vi. low unemployment rate;
vii. steady and positive growth in the various economic sectors, especially in the Information Communications
Technology Services (ICTS); and
viii. higher economic growth forecasts for China, India and ASEAN countries, where at least 60% of Malaysia’s
total trade is concentrated at and is highly likely to bring a positive impact on the Malaysian economy
in 2013.

13. 11
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Nonetheless, the Malaysian economy is not totally free from economic encumbrances and faces a number
of investment related risk factors such as:-
i. External environment: Risk aversion strategy among potential investors due to globalisation and market
liberalization phenomena;
ii. Macro policy environment: Any slacking in the delivery of economic transformation initiatives, mega
projects and geographically defined corridor projects;
iii. Reducing fiscal deficit: Poor management on the part of the Government in its ambitious task in
reducing the fiscal deficit from 5.4% of GDP in 2011 to 3% in 2015 may dampen public expenditure
and investments, unless the Government achieves the target through revenue-increasing measures or
operational cost reduction strategies;
iv. Macro indicators: Fluctuation in oil and commodity prices in global markets could result in higher prices
for consumers through increasing inflation and base lending rates;
v. Capital flight: Massive capital outflow arising from volatile foreign exchange rates is also bound to hurt
export and import earnings;
vi. Quality of Malaysian workforce: Over dependence on low skilled foreign workers may not be healthy
for the Malaysian economy in the long term unless a concerted effort is made to increase the quality
of the local workforce, ingrained with technological capabilities, innovation culture, R&D capabilities,
productivity, quality and competitive edge best practices;
vii. 13th
General Election: Typically, during the post-election period the Government takes cognizance and
reminds the public of its pledges and promises, and therefore tends to implement developmental projects.
From a business perspective, it is imperative and crucial to ensure a familiarity of policies and regulations
now that GE13 is done and dusted. The Government should also review policies that may have run their
course as this will garner wider public support and boost investor confidence.
ICT Industry Outlook
As it was in the past, the ICTS segment in Malaysia is projected to register significant growth in 2013. The
ICTS segment grew at a Compound Annual Growth Rate (CAGR) of 13.3% by increasing its value added
services from RM12.3 billion in 2001 to RM55.1 billion in 2012 (Figure 2). The ICTS segment is poised to
reach the mark of RM61.7 billion in 2013 by registering another annual growth rate of 12%. In tandem, the
share of ICTS in the national Gross Domestic Product (GDP) increased from 3.4% to 6.3%, almost doubling
during the period of 2001-2012.
Traditionally, telecommunications and computer services constitute the ICTS segments as per Malaysian
Standard Industry Classification 2000 (MSIC2000). The introduction of MSIC2008 saw the inclusion of
publishing services, motion picture, video and television programme, programming and broadcasting and
information services as additional items. The new additional segments constitute about 11% of the total ICTS
sector contribution in terms of value added services.
PIKOM is confident of achieving double digit growth rate in the years ahead through on-going capital intensive
economic transformation programmes and mega-projects that have been stimulating domestic demand for
ICT Services. To name a few, the ICT intensive big projects include My Rapid Transit (MRT) linking Kajang
and Sg. Buluh, Petronas Refinery and Petrochemical Integrated Development (RAPID) project in Pengerang,
Tun Razak Exchange, River of Life, Bandar Malaysia at Sungei Besi as well as the various economic corridors

14. 12
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
– Iskandar Malaysia, Northern Corridor Economic Region (NCER), East Coast Economic Region (ECER),
Sabah Development Corridor (SDC) and Sarawak Corridor of Renewable Energy (SCORE).
10
20
30
40
50
60
70
80
20132012201120102009200820072006200520042003200220012000
12.3 13.7 14.8 15.5 18.1
22
24.4
27.6 31
37
43.1
48.2
55.1
61.7
(RM Billion)
ValueinRinggitMalaysia
Figure 2: ICTS Value Added Services : 2001-2013
Source: Department of Statistics and PIKOM Estimates
The ICT sector, in its contemporary form, has evolved to be more than a mere collection of technological
tools. As a socio-economic enabler and key driver of businesses, ICT is poised to increases the process
efficiency and product and services delivery effectiveness.
ICT’s ubiquity and pervasive features and characteristics are continually impacting the way one works, plays
and learns. In the early stages of information age, such changes were succinctly harnessed through the MSC
Malaysia initiative that saw its introduction in the mid-nineties. Having gone through two decades of new age
experiences and exposures, viewing from a public policy perspective, the country is migrating into its next
phase of inflection point by creating a digital innovation economy through the Digital Malaysia Programme
(DMP).
From a private sector lens, the DMP is expected to increase business activities while at the same time
addressing key national concerns such as creating opportunities for the B40 income group (the lowest 40%
in household income), youth, women and digital entrepreneurs.
In 2013, industry pundits are projecting at least four key trends changing the way in which firms work, which
in turn, impacts on economic growth. The four key trends are:
i. Big data analytics, which are deployed in a variety of industries to serve customers better by culling out
insights and predictions that the data can generate. The process can help to improve the profitability
of the company by assessing credit worthiness, risk analysis and/or data supported decision making
processes;
ii. Cloud computing, which is one of the fastest growing technological advances, helps companies to
structure, organise and store large amounts of data without investing heavily on hardware and software
tools. More importantly, company employees always remain connected with the help of smartphones and
tablets. With such a work culture, people need not be in the office to complete their tasks; they can do
their work from the train or bus on their daily commute, besides teleworking from home;
iii. Mobile device usage, particularly smart phones and tablets, make customers and clients more mobile
and also provides access to companies’ websites, applications and records wherever they happen to be;

15. 13
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
iv. Social media, an offspring of the Internet age. This new age media, though seen as a disruptive and
unproductive activity when staff unnecessarily waste time, can be a powerful tool for customer
engagement, relationship building, networking, information sharing, and soliciting feedback, as well as
branding products and services.
Despite growing dynamism, the nation’s ICT sector continues to face several persistent challenges:
i. Supply of ICT Graduates: As it was in the recent past, ICT enrolment in both public and private institutions
has stagnated. The ICT enrolment in the public universities has not improved much, as the figure has
been lingering around 25,000 per year over the past three years. Understandably, with budget constraints,
it will be difficult for public universities to increase their capacity to produce more ICT graduates. ICT
enrolment in private universities also has not improved very much and averages around 50,000 per year,
which, notably, is half than what it was a decade ago.
ii. Quality of ICT Graduates: Quality, competency and employability of ICT graduates in meeting the industry’s
demands continue to remain a critical issue. Low remuneration, especially in comparison to regional
countries, rampant job-hopping for better terms of employment, and a declining interest among young
people in ICT jobs that demand long working hours continue to plague the growth of the ICT industry.
However, initiatives by TalentCorp, which was established in January 2011, helped to redress some of the
talent gaps in the ICT sector. The initiatives are carried out via three strategic thrusts: optimise Malaysian
talent, attract and facilitate global talent and build networks of top talent. Being new, these endeavours
are yet to be realised.
iii. Quality and Competency Standards of Human Capital in ICT Firms: The ICT industry, including its workforce,
generally lacks the interest in attaining global standards in process and quality improvement activities.
PIKOM’s internal investigation revealed that only 6% of Malaysian Information Communications Technology
Service (ICTS) providers have attained Capability Maturity Model Integration (CMMI) certifications and less
than 1.5% are equipped with the People Capability Maturity Model (PCMM) certification. The numbers
were further disheartening upon realising that less than 2% of PIKOM members in the ICTS segment have
employees certified with Six Sigma or Lean Six Sigma accreditations. Green ICT Certifications have yet to
gain a foothold in the Malaysian ICTS landscape. Pursuant of these certifications is critical for globalising
Malaysian ICT products and services, or to solicit ICT contracts from developed economies like USA;
and
iv. Research, development and commercialisation culture: Public and private universities and industries are
still behind in creating globally-recognised ICT products and services due to the lack of a strong R&D
and patenting culture. Despite the long established presence of some multi-nationals, the country still
has weak links in the global R&D and innovation network. This is due to difficulties in getting the right
candidates to embark on high value adding ICT activities that the Government has been passionate about
over the past two decades.

16. 14
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
ICT Job Market
Salary Trends

17. 15
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Job Category
Overall
The average monthly salary of an ICT professional in Malaysia in 2012 was RM6,784 (Figure 3). This represents
an increase of 8.7% from RM6,240 in 2011. This increase was well above the average inflation rate of 3.2%
in 2011 and 1.6% in 2012, resulting in a comfortable living for ICT professionals in Malaysia. Given the
optimistic outlook of the economy and other positive factors within the ICT industry, PIKOM anticipates an
8.9% rise in the average salary of ICT professionals in 2013, to a figure no less than RM7,387 per month.
4000
4500
5000
5500
6000
6500
7000
7500
8000
20132012201120102009200820072006
4,184 4,446 4,699 5,276 5,626 6,240 6,784 7,387
AverageMonthlySalary(RinggitMalaysia)
Average
Monthly
Salary
4,184
4,446
4,699
5,276
5,626
6,240
6,784
8.7%
8.9%
7,387
Figure 3: Average Salary of ICT Professionals: 2006-2013
Source: Jobstret.com and PIKOM, 2013
By Job Category and Years of Working Experience
It can be seen from Table 1 that all ICT job categories, except Junior Executive, registered significant increase
in the average salary in 2012. ICT professionals in the middle management level received the highest average
rate of pay rise of 14.1%, followed by senior management (9.9%) and senior executive category (9.6%).
Junior executives received only a raise of 1.7% where their average monthly salary increased from RM3,151
in 2011 to RM3,206 in 2012. The fresh graduates are, on average, netting a monthly salary of RM2,343,
which is considered as a significant rise from RM2,238 in the preceding year .
By Job Category
Year
Fresh
Graduates:
(Entry Level)
Junior
Executive:
(1-4 Years
Working
Experience)
Senior
Executive:
(> 5 Years
Working
Experience)
Middle
Management:
(Manager)
Senior
Management:
(Senior
Manager)
Overall
2010 - 2,936 4,514 7,005 10,795 5,626
2011 2,238 3,151 5,039 7,837 12,166 6,240
2012 2,343 3,206 5,521 8,946 13,374 6,784
Percentage
Change (%)
4.7 1.7 9.6 14.1 9.9 8.7
Benchmarking Against Average Monthly Salary of Fresh Graduates
2011 1.00 1.41 2.25 3.50 5.44
2012 1.00 1.37 2.36 3.82 5.71
Table 1 : Average Salary of ICT Professionals by Job Category: 2010-2012
Source: Jobstret.com and PIKOM, 2013

18. 16
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
From Table 1, it can also be observed that Senior Managers earned 5.44 times higher than fresh graduates
in 2011 and 5.71 times higher in 2012. Similarly, the figures for Middle Manager level were 3.50 and 3.82
while for Senior Executives it were 2.25 and 2.36, indicating a widening disparity in the salary structure.
Industry Category
Table 2 and Table 3 show the average monthly salary of ICT professionals by industry.
Industry
(Central Malaysia)
Fresh Graduates / Entry Level
(Less than 1 year working experience) %
Change
Percentiles (Ringgit Malaysia) Weighted Mean
25th 50th 75th 2012 2011
Automotive/Heavy Industry/Machinery 1,800 2,300 2,300 2,175 2,175 0.0
Bank 2,000 2,500 2,700 2,425 2,225 9.0
Call Centre/IT-Enabled Services 1,800 2,300 2,700 2,275 2,275 0.0
Computer/IT (Hardware) 2,000 2,400 2,670 2,368 2,213 7.0
Computer/IT (Software) 2,000 2,500 2,800 2,450 2,400 2.1
Construction/Building 1,715 1,800 2,775 2,023 1,800 12.4
Consulting (Business/Technical) 2,000 2,350 2,600 2,325 2,275 2.2
Education 1,600 2,000 2,331 1,983 1,975 0.4
Electrical & Electronics 1,950 2,310 2,800 2,343 2,063 13.5
Financial Services/Securities/Insurance 2,000 2,230 2,800 2,350 2,225 2.6
Hotel/Restaurant/Food Service 1,800 1,800 3,750 2,288 2,225 2.8
Manufacturing 2,150 2,540 2,800 2,508 2,508 0.0
Oil/Gas/Petroleum 2,300 2,800 3,200 2,775 2,418 14.8
Printing/Publishing 2,000 2,000 3,200 2300 2,225 3.4
Science & Technology/Aerospace/BioTechnology 2,500 2,500 2,500 2500 2,350 6.4
Semiconductor/Wafer Fabrication 3,280 3,280 3,280 3280 3,280 0.0
Services 1,900 2,030 2,500 2115 2,000 5.8
Telecommunication 1,700 2,200 2,500 2150 2,120 1.4
Transport/Storage/Freight/Shipping 1,600 2,300 2,800 2250 2,284 -1.5
Wholesale/Retail/Trading 1,500 1,950 2,300 1925 1,800 6.9
Geometric Mean (GM) : (Ringgit Malaysia ) 2343 2,238 4.7
Minimum (Ringgit Malaysia ) 1925
Maximum (Ringgit Malaysia ) 3280
Table 2: Average Monthly Salary of ICT Graduates by Industry in 2012
Source: Jobstret.com and PIKOM, 2013
Fresh graduates by Industry
Table 2 shows that the Semiconductor and Wafer Fabrication industries paid the highest monthly salary of
RM3,280 for fresh graduates in 2012 but had not changed since 2011. However, the Oil and Gas industry
registered a signifi cant rise in the monthly salary for fresh graduates from RM2,418 in 2011 to RM2,775 in
2012, recording the highest percentage increase of 14.8%. This is followed by the Electrical and Electronics
industry where the average salary for fresh graduates increased by 13.5%, which is an increase from RM2,063
in 2011 to RM2,343 in 2012. ICT graduates in the Construction and Building industry also experienced
a significant increase of 12.4% in their salary. Besides Semiconductor and Wafer Fabrication, industries
like Automotive and Heavy Industry, Manufacturing, Transport, Storage, Freight and Shipping as well as
Call Centre and IT enabled Services did not show any improvement in the average salary for fresh graduates
in 2012.

19. Industry
(CentralMalaysia)
SeniorManagement
(SeniorManager)
MiddleManagement
(Manager)
SeniorExecutive
(5ormoreworkingexperience)
JuniorExecutive
(1-4workingexperience)
Percentiles
(RinggitMalaysia)Weighted
Mean
Percentiles
(RinggitMalaysia)Weighted
Mean
Percentiles
(RinggitMalaysia)Weighted
Mean
Percentiles(Ringgit
Malaysia)Weighted
Mean
25th50th75th25th50th75th25th50th75th25th50th75th
Agriculture/Plantations/Aquaculture--------3,4004,00087305,0331,4682,5002,7502,305
Automotive/HeavyIndustry/Machinery7,35020,80020,80017,4387,3008,80011,1009,0004,4005,0505,7005,0502,4003,9503,9503,563
Bank10,04513,00019,80013,9616,7758,50010,2008,4944,6005,5006,7005,5753,0003,4004,1003,475
CallCentre/IT-EnabledServices----7,0008,5009,2008,3003,8004,5006,2004,7502,7003,2003,8003,225
Chemical--------5,1007,3638,6007,1074,5004,6007,1585,215
Computer/IT(Hardware)15,00016,50021,60017,4005,3006,5008,9006,8003,6004,7006,3384,8352,2003,2003,8003,100
Computer/IT(Software)8,00010,0013,50010,3756,0007,5009,3007,5754,0005,0706,5005,1602,5003,0003,7503,063
Construction/Building----6,2006,3007,5006,5753,5004,2506,0004,5002,5003,0003,3002,950
Consulting(Business/Technical)8,00010,50015,00011,0006,3008,60011,0008,6254,3005,8577,5005,8792,7003,2004,0303,283
Education8,0008,0008,5008,1253,8005,5006,1005,2253,1004,1505,0004,1002,1002,6003,0002,575
Electrical&Electronics----5,36517,00017,00014,0914,5005,138570051192,8103,3003,5003,228
FinancialServices/Securities/Insurance10,04513,00019,80013,9617,5008,3209,0008,2854,3005,5006,5005,4503,0003,4004,1003,475
Hotel/Restaurant/FoodService----5,0007,8008,3467,2373,6055,0005,6004,8012,5002,6002,6002,575
Manufacturing11,42914,00017,35014,1507,0008,19010,0008,3454,0005,3966,4005,2982,6603,0003,9663,157
Oil/Gas/Petroleum14,08516,00020,00016,5219,01610,00013,00010,5045,5007,5009,5007,5003,0003,6004,5003,675
Printing/Publishing----5,5007,0007,0006,6253,1164,0005,5004,1542,4002,7002,9962,699
Property/RealEstate----6,2007,0008,2007,1005,1006,0006,2005,8252,9003,0003,9603,215
Science&Technology/Aerospace/
BioTechnology
9,32112,98915,40013,6808,50010,60011,00010,1754,5006,7508,0006,5002,5003,1003,5773,069
Semiconductor/WaferFabrication----9,00011,00013,73011,1834,5005,2757,2005,5633,0103,7004,6003,753
Services13,00013,50021,25015,3136,6308,60015,5009,8333,8005,2006,6505,2132,0753,4003,6003,119
Telecommunication11,00012,60015,50012,9257,1708,80010,0008,6935,2006,5008,5006,6752,7503,3004,2003,388
Transport/Storage/Freight/Shipping8,00015,00017,460138656,4009,00010,0008,6004,1005,4207,5005,6102,2003,2003,8003,100
Utilities----6,9757,0008,0007,2444,4025,0006,4005,2013,0003,2023,5003,226
Wholesale/Retail/Trading10,00012,00014,70012,1758,05010,00011,7859,9593,9004,8005,7004,8003,0003,3504,0003,425
GeometricMean(GM):(Ringgit
Malaysia)
13,3748,9465,5213,206
Minimum(RinggitMalaysia)8,1256,6254,1542,575
Maximum(RinggitMalaysia)17,43814,0917,5003,753
Table3:AverageMonthlySalaryofICTProfessionalsbyIndustry,2012
Source:Jobstret.comandPIKOM,2013

20. Industry
(CentralMalaysia)
SeniorManagement
(SeniorManager)
MiddleManagement
(Manager)
SeniorExecutive
(5ormoreworkingexperience)
JuniorExecutive
(1-4workingexperience)
ALLJOBCATEGORIES
20122011
%
change
20122011
%
change
20122011
%
change
20122011
%
change
20122011
%
change
Agriculture/Plantations/Aquaculture------5,0334,6009.42,305--3,405--
Automotive/HeavyIndustry/Machinery17,438--9,0008,9250.85,0504,9891.23,5633,10014.97,2895,16841.0
Bank13,96111,88717.48,4947,9836.45,5755,3953.33,4753,4002.26,9236,4597.2
CallCentre/IT-EnabledServices---8,3007,25814.44,7504,5564.33,2253,2250.05,0284,7426.0
Chemical------7,1076,41710.75,2154,8906.66,0875,6018.7
Computer/IT(Hardware)17,40014,47520.26,8005,96314.04,8354,7691.43,1003,0023.36,4895,9299.4
Computer/IT(Software)10,37510,0003.87,5757,2634.35,1605,0192.83,0633,0251.25,9365,7623.0
Construction/Building---6,5756,5750.04,5004,1009.82,9502,9001.74,4364,2763.7
Consulting(Business/Technical)11,00011,0000.08,6258,0137.65,8795,5256.43,2833,1504.26,5416,2584.5
Education8,1258,1250.05,2254,9505.64,1004,1000.02,5752,5232.14,6014,5161.9
Electrical&Electronics---14,09114,0910.05,1194,7507.83,2283,1133.76,1525,9283.8
FinancialServices/Securities/Insurance13,96110,25036.28,2857,5759.45,4505,2613.63,4753,4002.26,8416,10512.1
Hotel/Restaurant/FoodService---7,23772000.54,8014,8010.02,5752,5252.04,4734,4360.8
Manufacturing14,15013,5504.48,3458,3400.15,2985,1752.43,1573,0952.06,6666,5522.2
Oil/Gas/Petroleum16,52116,1462.310,5049,7607.67,5007,5000.03,6753,5005.08,3168,0203.7
Printing/Publishing---6,6256,5241.54,1544,1500.12,6992,5008.04,2044,0753.2
Property/RealEstate---7,1006,35011.85,8255,3009.93,2153,905-17.75,1045,0840.4
Science&Technology/Aerospace/
BioTechnology
13,68013,6800.010,1757,33938.66,5005,03129.23,0692,9254.97,2596,20017.1
Semiconductor/WaferFabrication---11,1839,49617.85,5635,5630.03,7533,7001.46,1575,8036.1
Services15,31315,3130.09,8339,8000.35,2133,92532.83,1192,79411.67,0346,36910.4
Telecommunication13,92512,8001.08,6938,5371.86,6756,1937.83,3883,2504.27,0996,8483.7
Transport/Storage/Freight/Shipping13,86511,36522.08,6007,9677.95,6105,4003.93,1002,9644.66,7486,1709.4
Utilities---7,2447,2440.05,2014,71010.43,2263,0924.34,9534,7254.8
Wholesale/Retail/Trading12,17512,1750.09,9599,8880.74,8004,8000.03,4253,3003.86,6826,6081.1
GeometricMean(GM):(RinggitMalaysia)13,37412,1669.98,9467,83714.15,5215,0399.63,2063,1511.76,7846,2408.7
Table4:ComparisonofAverageMonthlySalaryofICTProfessionalsbyIndustry,2011and2012
Source:Jobstret.comandPIKOM,2013

21. 19
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Experienced ICT Professionals by Industry
The highest salary earned by ICT professionals differed among industries as well as by the number of years
of working experience held. Table 3 shows that the Automobile, Heavy Industry and Machinery as well as
the Computer Hardware industries were the top-paying ones in the senior management category, where the
maximum monthly salary recorded was RM17,438 in 2012. No data was reported for Semiconductor and
Wafer Fabrication, Construction and Building and Chemical industries where the pay could also be equally
high. In the middle management level, the maximum monthly salary of RM14,091 was reported in the
Electrical and Electronics industry. In the senior executive level, the Oil and Gas industry reported the highest
monthly salary of RM7,500. For the junior executive level, the Semiconductor and Wafer fabrication industry
offered the highest salary of RM3,753 per month.
Comparison Between 2011 and 2012 by industry
Table 4 shows that, on overall, the Automotive, Heavy Industry and Machinery, Science & Technology, Aerospace
and Bio-technology as well as the Financial Services industries registered a significant rise in the salary for the
ICT professionals of not less than 10% between 2011 and 2012. Discounting the sectors lacking data, Table 4
also shows that ICT professionals in the Senior Management category working in the Financial Services industry
received the highest salary increment of 36.2%, which is an increase from RM10,250 to RM13,961 . Further
scrutiny revealed that in the Middle Management category, the Science & Technology, Aerospace and Bio-
technology industry reported the highest percentage of change (38.6%) in the monthly salary from RM7,339
in 2011 to RM10,175 in 2012. In the Senior Executive category, the Services and Science & Technology,
Aerospace and Bio-technology industries recorded the highest pay rise of 32.8% and 29.8% respectively. The
Automobile, Heavy Industry and Machinery industry registered the highest pay rise of 14.9% in the Junior
Executive category, which is an increase from RM3,100 in 2011 to RM3,563 in 2012.
Top Five Paying Industries
Industry
(Central Malaysia)
ALL JOB
CATEGORIES
Industry
(Central Malaysia)
Senior Executive
(5 or more years
working experience)
Oil/Gas/Petroleum 8,316 Oil/Gas/Petroleum 7,500
Automotive/Heavy Industry/Machinery 7,289 Chemical 7,107
Science & Technology/Aerospace/BioTechnology 7,259 Telecommunication 6,675
Telecommunication 7,099 Science & Technology/Aerospace/BioTechnology 6,500
Services 7,034 Consulting (Business/Technical) 5,879
Industry
(Central Malaysia)
Senior
Management
(Senior Manager)
Industry
(Central Malaysia)
Junior Executive
(1-4 working
experience)
Automotive/Heavy Industry/Machinery 17,438 Chemical 5,215
Computer/IT (Hardware) 17,400 Semiconductor/Wafer Fabrication 3,753
Oil/Gas/Petroleum 16,521 Oil/Gas/Petroleum 3,675
Manufacturing 14,150 Automotive/Heavy Industry/Machinery 3,563
Bank 13,961 Bank 3,475
Industry
(Central Malaysia)
Middle
Management
(Manager)
Industry
(Central Malaysia)
Fresh Graduates
Electrical & Electronics 14,091 Semiconductor/Wafer Fabrication 3,280
Semiconductor/Wafer Fabrication 11,183 Oil/Gas/Petroleum 2,775
Oil/Gas/Petroleum 10,504 Science & Technology/Aerospace/BioTechnology 2,500
Science & Technology/Aerospace/BioTechnology 10,175 Computer/IT (Software) 2,450
Wholesale/Retail/Trading 9,959 Bank 2,425
Table 5 : Top Five Paying Industries by Job Category, 2012
Source: Jobstret.com and PIKOM, 2013

22. 20
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Table 5 shows the top five paying industries for each ICT job category. Of the 25 industries covered in
the investigation, the results showed that the Oil, Gas and Petroleum industry dominated the list in all the
categories. It is followed by Science & Technology, Aerospace and Bio-technology industry which constituted
as one of the top five paying industries for all the job categories, except in the Senior Management level for
which the salary remained stagnant between 2011 and 2012.
ICT Industry Segments
For the purpose of compiling salary records, Jobstreet.com had categorised the ICT industry segments into
ICT hardware, ICT software and ICT-enabled services including call centres.
By Job Category
Figure 4 shows the average salaries of ICT professionals by job category within the ICT industry. The salary
increment experienced by all ICT job categories except the Senior Manager category was not very encouraging.
The worst hit were ICT Junior Executives who received only a 1.5% pay rise on an average between 2011 and
2012 (see also Table 6). On the contrary, in 2012 Senior Managers in the ICT sector experienced an average
pay rise of 11.6%, which is an increase from RM12,588 in 2011 to RM14,044.
0
3000
6000
9000
12000
15000
ICT Senior ManagerICT Middle ManagerICT Senior ExecutiveICT Junior Executive
3,082
3,129
4,778
4,912
7,322
7,533
12,588
14,044
AverageSalaryinRinggitMalaysia
2008 2,440 3,681 5,837 8,975
2009 2,689 4,061 4,938 9,867
2010 2,797 4,417 5,957 10,876
2011 3,082 4,778 7,322 12,588
2012 3,129 4,912 7,533 14,044
Figure 4: Average Monthly Salary of ICT Professionals by ICT Industry Segments
Source: Jobstret.com and PIKOM, 2013
Within the Senior Manager category, ICT hardware professionals netted the highest pay increase of 20.2%, a
jump from RM14,475 in 2011 to RM17,400 in 2012 (Table 6). ICT Senior Managers in the ICT Call Centres/
IT Enabled services and ICT Software categories also registered significant rise in their salary, 9.0% and 6.0%
respectively.

23. 21
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Year
ICT Executive ICT Senior Executive
ICT
Hardware
ICT
Software
Call
Centre/ICT
Enabled
Services
ICT
Industry
ICT
Hardware
ICT
Software
Call
Centre/ICT
Enabled
Services
ICT
Industry
2008 2,325 2,500 2,500 2,440 3,400 3,924 3,749 3,681
2009 2,767 2,557 2,748 2,689 4,130 3,869 4,190 4,061
2010 2,720 2,750 2,925 2,797 4,320 4,505 4,428 4,417
2011 3,002 3,025 3,225 3,082 4,769 5,019 4,556 4,778
2012 3,100 3,063 3,225 3,129 4,835 5,160 4,750 4,912
% change
2011-2012
3.3 1.3 0.0 1.5 1.4 2.8 4.3 2.8
Year
ICT Middle Manager ICT Senior Manager
ICT
Hardware
ICT
Software
Call
Centre/ICT
Enabled
Services
ICT
Industry
ICT
Hardware
ICT
Software
Call
Centre/ICT
Enabled
Services
ICT
Industry
2008 5,075 5,995 6,538 5,837 7,971 8,475 10,700 8,975
2009 5,052 5,930 4,018 4,939 9,405 8,998 11,350 9,567
2010 6,625 6,646 7,548 6,957 10,900 9,250 12,758 10,876
2011 6,718 7,263 8,051 7,322 14,475 10,000 13,779 12,588
2012 6,800 7,575 8,300 7,533 17,400 10,600 15,019 14,044
% change
2011-2012
1.3 4.3 3.1 2.9 20.2 6.0 9.0 11.6
Table 6: Average Monthly Salary by Job Category and ICT Industry Segment
Source: Jobstret.com and PIKOM, 2013
By ICT User Industries
Figure 5 shows the distinction in the average monthly salary earned by ICT professionals working in the ICT
Producer and ICT User industries. As in the previous year, there is no distinct difference in salaries earned
by ICT professionals in these two segments. The 2012 data revealed that ICT professionals in the Producer
industry on the overall earned an average monthly salary of RM6,355, which is marginally higher than their
counterparts in the User industry where the average was only RM5,903.
0
2000
4000
6000
8000
10000
12000
14000
16000
Junior Executive:
(1-4 Years Working
Experiance)
Senior Executive:
(> 5 Year Working
Experience)
Middle Management:
(Manager)
Senior Management:
(Senior Manager)
RinggitMalaysia
ICT User Industries 13,364 8,519 5,408 3,216
ICT Producer Industries 13,735 9,354 5,437 3,236
Figure 5: Average Monthly Salary of ICT Professionals by Job Category, ICT User Industries and
ICT Producer Industries
Source: Jobstret.com and PIKOM, 2013

24. 22
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Selected Key ICT Job Functions
The average monthly salary earned by key ICT professionals is shown in Table 7. It can be seen from this
table that ICT professionals in the managerial category, whether they are Java, HTML, SQL or MCP certified,
netted the highest earnings compared to other ICT job functions. IT Project Managers can net an average
monthly salary as high as RM17,500, which is almost two times higher than software engineers, who tend to
net as high as RM7,917 per month only. As expected, the Senior Software Engineer, on an average, netted
RM6,638 per month, which is 50% higher than the earnings of Software Engineers. On an average AutoCAD
engineers were paid RM4,783 monthly and the experienced ones can net as high as RM10,000 per month.
Being a highly specialized job, the average monthly salary earned by SAP Consultants in 2012 was RM8,542
and the experienced ones netted as high as RM 16,667. Web designers earned the lowest monthly salary,
an average of just RM3,692 monthly, among the listed jobs.
Job Functions
Mean
Monthly
Salary
Median
Monthly
Salary
Minimum
Monthly
Salary
Maximum
Monthly
Salary
Information Technology, Project Manager (Java, HTML,SQL, Microsoft
Certified Professional)
9,700 7,100 4,667 17,500
SAP Consultants 8,542 7,647 3,833 16,667
Information Technology Consultants (Java, HTML and MCP) 7,242 6,967 3,667 13,333
Senior Database/ System Administrators (Microsoft and Cisco Certified) 7,021 6,867 4,250 11,667
Senior Executive Engineer (Java, HTML,SQL, Microsoft Certified
Professional (MCP) and Cisco)
6,638 5,973 3,500 11,667
Database/System Administrators (Microsoft and Cisco Certified) 4,783 4,327 2,042 10,000
AutoCAD: Civil Engineering 4,783 3,419 2,167 10,000
Software Engineer (Java, HTML,SQL, Microsoft Certified Professional
(MCP) and Cisco)
4,567 2,997 2,417 7,917
Software Developer/Programmer (Java, HTML,SQL) 4,317 3,778 2,417 7,167
Programmer/Analyst (Java, HTML,SQL) 4,288 3,432 2,417 7,000
HTML, Web Designer 3,692 2,773 1,583 6,917
Table 7: Average Monthly Salary of ICT Professionals by Job Function 2012
Source: (http://www.PayScale.com/research/ ) and PIKOM
Years of Working Experience
Typically one expects the salary of an employee to go up in tandem with the number of years of working
experience. As shown in Figure 6, the median salary of those have more than 20 years of working experience
earned 5.22 more than those who have less than one year of working experience.
0
2000
4000
6000
8000
10000
12000
20 year or more10-195-91-4Less than 1 Year
1.00
1.31
2.24
3.39
5.22
MedianSalary(RinggitMalaysia)/
BenchmarkingScale
Median
Salary (RM)
2,244 2,935 5,019 7,616 11,717
Figure 6: Median Monthly Salary of ICT Professionals and Benchmarking Scale by Years of
Experience, 2012
Source: (http://www.PayScale.com/research/ ) and PIKOM

25. 23
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Employment Size
Employment size matters in determining the average monthly salary of employees. As shown in Figure 7,
large corporations or multinationals (MNCs) tend to pay higher than smaller ones. Comparing against the
smallest sized companies in the 1-9 employees category, which is taken as the baseline, the median salary
paid by companies with more than 2,000 employees was 1.88 times more.
0
1000
2000
3000
4000
5000
6000
7000
8000
More than
2000
600-1999200-59950-19910-491-9
1.00 1.03
1.27
1.42 1.60
1.88
MedianSalary(RinggitMalaysia)/
BenchmarkingScale
Median Salary (RM) 3,390 3,493 4,321 4,805 5,426 6,363
Figure 7: Median Monthly Salary of ICT Professionals and Benchmarking Scale by Employment
Size, 2012
Source: (http://www.PayScale.com/research/ ) and PIKOM
Geographical Location
As shown in Figure 8, ICT professionals working in Kuala Lumpur and Cyberjaya tend to earn 1.75 times
higher than their counter parts working in smaller locations like Ipoh. Even within the Klang Valley, the
disparity in the salary is quite distinct, where the average median salary of ICT professionals in Petaling Jaya
or Shah Alam tends to be lower than their counterparts in the capital city.
0
1000
2000
3000
4000
5000
6000
IpohKuchingShah AlamJohorePetaling JayaCyberjayaKuala Lumpur
1.75 1.73
1.38
1.20 1.19
1.03 1.00
MedianSalary(RinggitMalaysia)/
BenchmarkingScale
Median Salary (RM) 5,092 5,024 4,022 3,499 3,472 2,982 2,906
Figure 8: Average Monthly Salary of ICT Professionals by Geographic Locations, 2011
Source: (http://www.PayScale.com/research/ ) and PIKOM
Gender
Despite gender equality, the salary data interestingly revealed that male ICT professionals tend to earn a
median salary of RM5,201 while females earned a median salary of only RM3,855, which work out to a 35%
difference.

26. 24
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Gender Median Salary (RM)
Male 5,201
Female 3,855
(Male salary / Female Salary) 134.9
Table 8: Gender Disparity in ICT Salary in Malaysia, 2012
Source: (http://www.PayScale.com/research/ ) and PIKOM
Hot ICT Jobs
Hot ICT jobs depend on the area of applications, as depicted in Figure 9. Specifically, in the technical
domain, software developers, programmers and engineers equipped with knowledge of Java C#, C++, .Net,
SharePoint and Web Application Development are highly sought after. Being an open platform and the ability
to speak to any back end system, large organisations in particular need Java programmers to transfer data
from legacy systems. Demand for network engineers and system administrators is on the rise in tandem with
the expanding scope of cloud computing and Windows 7 related migration activities.
Within the Business Applications domain, the demand for ICT professionals also vary greatly. Though
demand for certified professionals in SAP or ERP are at an all time high, professionals specializing in IT audit
and IT security are proliferating, especially in fending off malware makers and cyber thieves. In addition,
organisations shifting towards cloud computing are spurring the need for infrastructure professionals. Big
Data Analytics is also a fast growing job area, especially in big companies desiring to extract insights from
their petabytes of stored data. The best candidates for Big Data Analytics jobs are those equipped with inter-
disciplinary knowledge and experience pertaining to not only technical know-hows but also with a strong
statistical/mathematical background. Similarly, demand for mobile application developers and user interface
designers who can develop user friendly and versatile applications are also on the rise.
Irrespective of technological evolutions, the demand for soft-skilled professionals especially in project
management, consulting, process and quality improvements is ever present.
TECHNICAL C# Java C++ .Net
Certified Network/
System Engineers
Certified Database
Administrators
APPLICATIONS SAP ERP IT Audit IT Security Help Desk Analysts Big Data Analytics
SOFT SKILLS
Project
Management
IT Consulting
Business Process
Improvement
Quality
Improvement
Figure 9: Hot ICT Jobs by Area of Applications
Source: JobStreet.com

27. 25
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Regional
Benchmarking

28. 26
ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Table 9 shows a comparative analysis of the remuneration earned by ICT professionals in selected Asian
and English speaking countries. Here, average remuneration earned by 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 median data
published by PayScale for the year 2012 was used. All measurements are tallied in US dollars. The average
value for each country is compiled after taking into consideration three variables, namely IT skills, company
size and years of working experience. Two types of benchmarking scales were published, specifically one
with purchasing power parity (PPP) that takes into account inflation rates and fluctuations in the foreign
exchange rates and the other without PPP adjustment. Indeed, technically speaking, ambitious job seekers
should use PPP adjusted figures when searching for overseas jobs.
Comparison Against Asian Countries
Without any PPP adjustment, the results showed that more advanced Asian economies, in particular Hong
Kong and Singapore, recorded average remunerations that were 2.25 to 2.54 times more than the average
remuneration earned by Malaysian ICT professionals in 2012 (Table 9). Besides these two countries, China,
Thailand and Vietnam offer higher remunerations for ICT professionals, offering 1.87, 1.36 and 1.20 times
more than in Malaysia respectively. Comparatively, Indonesia, India and Philippines offer lower remunerations
to their ICT professionals. With PPP adjustment, which takes into account for inflation and foreign exchange
rates as well as standard of living, the result showed that Hong Kong still ranked the highest paying nation in
Asia for ICT professionals. However, the scaling factor is only 1.90, which is significantly lower than the non-
PPP adjusted scaling depicted earlier. Similarly, the scaling factors for Singapore and China lowered to 1.84
and 1.63 respectively. Surprisingly, Vietnam recorded a higher scaling value of 1.87, indicating a much more
attractive nation in Asia for talent migration.
Country
IT Skil/
Speciality
Company
Size
Year of
Experience
Average
Benchmark
Scale
IT Skil/
Speciality
Company
Size
Year of
Experience
Average
Benchmark
Scale
Benchmarking Scale: Malaysia=1.00
(Atlias Method)
Benchmarking Scale: Malaysia= 1.00
(Purchasing Power Parity (PPP) Adjusted)
Malaysia 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00
Singapore 2.25 2.23 2.31 2.26 1.74 1.72 2.06 1.84
Thailand 1.35 1.49 1.22 1.36 1.45 1.59 1.05 1.36
India 0.50 0.42 0.56 0.49 0.71 0.60 0.68 0.66
China 1.66 2.06 1.89 1.87 1.54 1.91 1.44 1.63
Phillipines 0.15 0.39 0.47 0.44 0.45 0.40 0.46 0.44
Vietnam 1.10 1.10 1.41 1.20 1.61 1.62 2.39 1.87
Hong Kong 254 2.59 2.35 2.53 1.95 2.06 1.69 1.90
Indonesia 0.66 0.73 0.79 0.73 0.57 0.63 0.47 0.56
United
Kingdom
2.67 2.41 2.45 2.51 1.38 1.24 1.79 1.47
Canada 3.25 2.96 2.95 3.05 1.57 1.48 2.16 1.72
New Zealand 3.08 2.74 2.75 2.86 1.74 1.55 2.25 1.84
Australia 4.08 3.52 3.59 3.76 1.80 1.60 2.31 1.90
USA 3.43 3.11 3.17 3.24 1.85 1.68 2.70 2.08
Table 9: Benchmarking Salaries Earned by ICT Professionals of Selected Countries and Malaysia,
2012
Source: (http://www.PayScale.com/research/ ) and PIKOM

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Malaysians are typically known to search for better opportunities beyond the shores of Asia. The distant
lands that become attractive destinations for Malaysians are mostly English speaking countries, in particular
United States of America, United Kingdom, Canada, Australia and New Zealand. Despite the distance, these
countries have long diplomatic and trade ties with Malaysia. Moreover, English is a popular lingua franca
among Malaysian businesses especially among the private sector and there has been always a natural
attraction for Malaysians to do more businesses with such English speaking countries. These destinations
are no exceptions for ICT Professionals as well, especially software developers and networking engineers who
are in demand at all times globally.
Figure 10 shows that the Australian and USA job markets offer the highest remuneration, 3.76 and 3.24
times more respectively without PPP adjustments than what a typical ICT professional in Malaysia can earn.
But, taking into considerations of PPP adjustments, the USA becomes a higher paying destination than
Australia, that is, 2.08 and 1.90 times respectively. Without PPP adjustments, Canada with its 3.05 scaling
factor also appeared as an attractive destination for ICT jobseekers but the PPP adjusted value reducing to
1.72 suggested otherwise. Similarly, UK’s scaling factor reducing from 2.51 without PPP adjustment to 1.47
PPP adjusted does not suggest it to be a very attractive destination as an ICT job market. Indeed, it can be
seen that the cost of living and foreign exchange fluctuations have significant impact on the salaries earned
and thus, becomes a crucial consideration factor for potential job seekers before making any decision on job
related migrations.
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
USA
Australia
HongKong
Vietnam
New
Zealand
Singapore
Canada
China
United
Kingdom
Thailand
Malaysia
India
Indonesia
Phillipines
0.440.44
0.730.56
0.490.66
1.00
1.36
2.51
1.87
3.05
2.26
2.86
1.20
2.53
3.76
3.24
1.00
1.36
1.47
1.63
1.72
1.84
1.84
1.87
1.90
1.90
2.08
Atlas
Method
0.44 0.73 0.49 1.00 1.36 2.51 1.87 3.05 2.26 2.86 1.20 2.53 3.76 3.24
PPP
Adjusted
0.44 0.56 0.66 1.00 1.36 1.47 1.63 1.72 1.84 1.84 1.87 1.90 1.90 2.08
Figure 10: Benchmarking Salaries Earned by ICT Professionals in Malaysia and Selected Countries,
2012
Source: (http://www.PayScale.com/research/ ) and PIKOM

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Employment Outlook
And Perception

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
This report also attempts to present the overall ICT job market outlook from an industry’s perspective and
from the perception of potential jobseekers. A total of 227 JobStreet.com clients, managers and senior
managers across various industries in Malaysia participated in this survey conducted in February 2013.
JobStreet.com Confidence Index (JECI)
The JobStreet.com Employment Confidence Index (JECI), which is compiled on a monthly basis, is shown
in Table 10. JECI ranges from zero (very poor) to 100 (very good). A low index shows a tough job market
situation where employment seekers find it difficult to get a job. A high index indicates a comfortable job
market, where people are able to secure a good job easily.
As shown in Figure 11, the JECI has significantly dropped from 51.6 in 2011 to 48.8 in 2012, before it shot
up slightly in January 2013, indicating increasing confidence in the local job market.
Month 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
JAN 49.1 50.5 52.2 47.0 44.9 50.7 52.6 49.6 47.6 41.7 36.2 31.2 42.0
FEB 50.9 52.5 48.7 43.1 49.0 52.7 50.1 47.4 42.3 31.7 31.8 41.5
MAR 50.4 51.2 48.8 43.8 51.8 52.4 49.7 43.3 41.6 34.6 35.7 39.4
APR 48.8 53.2 51.4 46.9 49.7 51.2 50.4 42.8 39.0 31.0 35.2 40.1
MAY 49.7 51.9 51.9 47.8 49.2 50.0 49.9 44.0 39.6 28.7 36.9 37.5
JUN 49.8 53.5 48.1 48.5 48.9 50.1 50.2 41.1 46.4 34.1 35.0 37.5
JUL 41.3 54.1 50.2 49.7 47.9 50.4 47.8 42.0 43.5 32.5 34.7 34.9
AUG 50.9 52.3 51.9 50.2 50.1 48.7 50.1 49.6 45.1 32.7 36.2 32.9
SEPT 48.7 48.8 61.0 48.7 49.6 49.5 50.7 48.6 51.9 34.7 34.0 30.5
OCT 48.8 51.0 53.7 48.3 49.6 48.6 49.6 46.8 49.6 32.9 32.7 32.4
NOV 48.7 49.2 51.6 50.0 47.6 49.3 51.7 47.1 51.3 37.0 34.5 31.2
DEC 48.1 49.4 49.7 50.2 47.3 49.6 51.9 49.0 49.9 36.8 31.6 31.5
Table 10: Job Employment Confidence Index: January 2001- January 2013
Source: Jobstreet.com
30
40
50
60
2013201220112010200920082007200620052004200320022001
36.1
34.1
33.6
45.2
45.8
50.1 50.4
49.3
47.7
51.2 51.6
48.8
49.1
JECIIndex
Figure 11: Job Employment Confidence Index: 2001-Jan 2013
Source: Jobstreet.com and PIKOM

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Anticipated Hiring Activities for the next 12 month
According to the JobStreet.com Job Outlook Report, the hiring climate is looking positive for the 1st quarter
of 2013 (Figure 12).
0
10
20
30
40
50
We're not hiring
the forseaable future
Hiring less / Replacing
or filling in essential
position only
We're maintaining
hiring rate
We're expanding,
hence hiring
more people
36%
23%
18%
1Q2013 1Q2012
25%
42% 43%
4.0%
9.0%
Figure 12: Hiring Activities Outlook, 2012
Source: Jobstreet.com
Hiring Prospects: For the First Quarter (Q1) of 2013, Malaysian employers have a brighter job outlook for
their hiring initiatives. 36% of the respondents are expecting to increase their hiring in the next 12 months.
Less than 5% of respondents acknowledged that they would not be hiring in the foreseeable future, a 5-point
drop from the 9% in 2012, which indirectly reflects a positive job outlook for Q1 of 2013.
Among the 36% who indicated they were expanding, the new hiring is to be mainly in the areas of sales,
marketing, accounting/finance, and manufacturing.
To gauge the overall job hiring sentiments in terms of annual trends, PIKOM used the Job Hiring Index Score
(JHIS) procedure as outlined in the Box below. The result is shown in Figure 13. The JHIS revealed that the
index came down to 2.62 in 2012 from 2.69 in 2011. However, the overall job hiring sentiment is shown to
be picking up for the year 2013, which is likely given the positive economic outlook.
For comparing the job hiring sentiments over the years, PIKOM calculated a Job Hiring Index
Score (JHIS) using the following procedure:
I=∑ fi
Wi
/ ∑ fi
In the formula above, “f” denotes the frequency expressed as percentage of responses netted or
implicitly weighted, as such, ∑ fi
=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, as
follows:-
4 for “We’re expanding and hence hiring more people”;
3 for “We’re maintaining our hiring rate this year”
2 for “Hiring less, replace / fill essential positions only”;
1 for “We’re not hiring in the foreseeable future”
As such, the expected or implicitly weighted average for JHIS value will be 2.5; the average for the
best case scenario where all the respondents indicate “much better” will be 4; similarly, the expected
average for the worst case scenario, where all the responses indicative of “much worse”, would be
1.
Source: PIKOM

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
2.50
2.55
2.60
2.65
2.70
2.75
2.80
2.85
2.90
Q1:2013Q1:2012Q1:2011Q1:2010
2.62
JHIS
2.69
2.62
2.86
JHIS 2.62 2.69 2.62 2.86
Figure 13: Job Hiring Index Score 2010-2013
Source: PIKOM
Top Specializations Sought
As reflected in Table 11, for most industries jobseekers in sales and marketing are still the most sought after,
followed by those with expertise in manufacturing, accounting and engineering. In comparison with the last
quarter, three new specializations have entered the top 10 list. They are manufacturing, engineering, and
mechanical engineering. Respondents from major industries such as hotel & restaurants, finance computer
and IT, mining (oil & gas) reported that they would most likely experience a better job growth in the next 12
month.
Top 10 specializations employers seek
1Q 2013 4Q 2012
1 1 Sales
2 2 Marketing
3 (new) − Manufacturing
4 8 Accounting
5(new) − Engineering (Others)
6 6 Engineering (Electrical)
7(new) − Engineering (Mechanical)
8 7 Human Resources
9 9 General Administration
10 4 Customer Service
Table 11: Top 10 Specializations Employers Seek, 2012 -2013
As mapped out in Table 12, the top specializations employers seek has changed over the past five years.
Sales, marketing and business development jobs are consistently ranked among the top most sought after
jobs. Interestingly Computer & IT (Software), which ranked either third or fourth positions from 2009 to 2012,
did not get into the top ten specializations employers seek for the year 2013. On the contrary, manufacturing,
mechanical engineering and other engineering jobs drew attention of potential employers. Customer service
category is also seen sliding down the top ten.

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
2013 2012 2011 2010 2009
Sales Marketing and business
development
Marketing and business
development
Marketing and business
development
Marketing and business
development
Marketing and business
development
Sales / Marketing
(merchandising)
Sales / Marketing
(merchandising)
Sales / Marketing
(merchandising)
Sales / Marketing
(merchandising)
Manufacturing Customer Service Computer & IT
(Software)
Customer Service Computer & IT
(Software)
Accounting Computer & IT
(Software)
Customer Service Computer & IT
(Software)
Engineering Mechanical
Engineering (Others) Engineering Mechanical Human Resources Engineering Mechanical Sales / Marketing
(technical)
Engineering (Electrical) Human Resources Top Management Human Resources Customer Service
Engineering
(Mechanical)
General / Cost
Accounting
Sales / Marketing
(technical)
Sales / Marketing
(technical)
Human Resources
Human Resources Sales / Marketing
(technical)
General / Cost
Accounting
General / Cost
Accounting
General / Cost
Accounting
General Administration Maintenance Computer & IT
(Hardware)
Top Management
Customer Service Engineering Electrical Education, Training &
Development
Clerical / General
Administration
Top Management
Table 12:Top Specializations Sought Trend: 2009-2013
Position Level Sought
According to respondents, 52% are looking for junior level positions which require less than 4 years of
experience followed by 24% who are looking at people with specialised skills, such as accountants and
engineers (Figure 14). Only 13% of the respondents are looking for fresh graduates. Human resource
managers in many industries expressed difficulties in hiring fresh graduates as many candidates without
working experiences are demanding a high salary. Managerial levels and above might be experiencing a
more difficult period as only 11% of the respondents are looking to fill such positions.
0% 10% 20% 30% 40% 50% 60%
Top Management (President, CEO,GM)
Director / Vice President
Manager / Assistant Manager
Supervisor / Specialist
Junior level (less than 4 years
experiance)
Fresh graduate 13%
52%
24%
11%
0.9%
Figure 14: Job Positions Sought After in 2013

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Rethinking HR in a Changing World:
A Practitioner’s Discourse
BY WOON TAI HAI, EXECUTIVE DIRECTOR, KPMG MALAYSIA

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Introduction
In the last 5 years, there has been a preoccupation with cost optimisation, cost reduction, sustainable cost
management... all things ‘cost’. This has required HR to play its part, largely through making the HR function
more efficient, but not necessarily more effective.
No one expects this focus on costs to change in the short to medium term.
But there is a clear case for HR functions to also generate value in the wider business and that there are some
signs that this drive for value creation from HR will become increasingly important.
The “big three” challenges to HR’s new growth agenda
The people agenda in most organisations contains some truly business-critical issues and the need for HR to
rise to the “big three” challenges has never been more acute. The “big three” challenges to HR’s new growth
agenda are:
balancing the global and the local1. – managing, hiring and identifying talent globally while retaining
important local insights
managing a flexible and virtual workforce2. – but not at the cost of loyalty and career development
retaining the best talent3. – maintaining employee engagement in the face of a less committed, more
flexible workforce.
These “big three” challenges and other key
findings were derived from a global study
by the Economist Intelligence Unit between
May & June 2012, commissioned by KPMG
International. The Global study of 418
executives comprised with more than one-third
(37 percent) of respondents who identified
themselves as C-level executives; with the
remainder being at the management level up
to senior vice-president. More than one-half
of respondents (58 percent) primarily serve
an HR function; the remainder (42 percent)
represents a wide range of other functions.
The respondents are based in Asia-Pacific (32 percent), Europe (30 percent), North America (28 percent)
and Latin America (10 percent). A wide range of industries is represented, including manufacturing and
energy & natural resources (both at 12 percent), IT, financial services, and healthcare & pharmaceuticals
(all at 11 percent). More than one-half of the companies surveyed (53 percent) boast more than 10,000
employees – 22 percent have over 50,000; the remaining 47 percent have between 1,000 and 10,000
employees.
The global study, aptly entitled, “Rethinking Human Resources in a Changing World” examines the nature
of the challenges facing the HR function and its future direction. The report’s main findings include the
following:
HR is struggling with the challenges of managing a global, flexible workforce.• The global workforce has
become increasingly integrated across borders while simultaneously growing more virtual and flexible.
These developments have made the retention of key talent and building workforces in new markets the
top priorities of HR departments over the last 3 years. Survey respondents expect little change in the next
3 years. Yet only about one in four respondents say that HR at their company excels at core issues such

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
as sourcing and retaining key talent globally; supporting
a virtual and flexible workforce; and supporting the
greater globalisation of the business.
Finding ways to engage with workers will help address•
the challenges of this global, flexible and remote
workforce. Insights from interviewees for this study
point toward improved employee engagement as the
way to address many of these problems. This will
involve creative solutions, such as the development of
HR policies and approaches that have global application
but can be made relevant to local conditions. It will
also require new ways to engage meaningfully with a
workforce that is less committed to the organisation.
Technology has already transformed HR and the application of data analytics will foster even more•
profound change. Sixty-nine percent of companies surveyed say it is more common for the HR function
to provide web-based and/or mobile HR platforms (e.g. benefits, payroll) than it was 3 years ago;
only 3 percent of respondents have cut back on these technology enhancements. These have already
enabled HR to do its basic, administrative work faster and more efficiently. They have also provided
employees with more flexible and tailored training opportunities while creating a positive culture for
communication.
Technology with the power to transform HR
The advent of data analytics – the most commonly cited area by respondents for IT investment in the next
3 years – will lead to the next technological quantum leap for HR. Interviewees explain that the application
of analytics, if done properly, will enable a more robust understanding of employee-related needs and
opportunities. For example, already 57 percent of respondents say that data analytics is helping to identify
future talent gaps.
Powerful technologies, emerging in times of heightened financial constraints, present a rare opportunity for
HR to enact long-overdue reinvention. Looking ahead, HR needs to:
–– develop greater confidence, leadership and credibility, so that HR heads can deservedly insist on a place
in strategic conversations at the highest levels
–– develop closer partnerships within the company, especially with line managers who will inevitably use
technology-driven HR services to play a greater role in employee management
–– recast its strategy so that it begins from a whole-business perspective and is aligned with the needs of the
entire company, not just the HR function.
Sixty-nine percent of survey respondents say that in the last 3 years, their companies have increased the
use of mobile or web-based platforms. Nearly half (49 percent) are making greater use of the cloud to
power these. Web-based and mobile apps have enabled many employees to handle their own HR services,
including benefits, payroll and performance evaluations. The shift to mobile and web-based platforms has
not always been easy, though. Yet the advantages of the HR self-service function are undeniable. Some of
the advantages include:
TIM PYNE
KPMG
HR Transformation
Center of Excellence
I believe... talent management should be the
top priority for HR, but business leaders
don’t feel that HR is delivering for them. I
believe that is because talent management is
so often anchored in the present rather than
focusing on the unique roles, capabilities
and skills the organisation needs to suceed
in the future.

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Doing the basics better and more efficiently – Moving
toward a more self-service model has improved basic HR
service efficiency while freeing up HR to focus on delivering
more strategic services that add value to the core priorities
of the business.
Better training – Moving away from classroom training
toward a more interactive, demonstrative approach. This
has been a very positive development and had a very
powerful impact. It enables employees to learn in more
bite-sized chunks and in a much more visual manner.
Creating a positive culture and brand for current employees
and potential hires – New technologies are playing an
important role in how we connect people in the organisation
and how we create a culture that is a medium for people.
Organisations are exploring how to use technology to create
a company brand that is attractive to people joining it.
The next step: data-driven HR
Data analytics is the most commonly cited area (selected by 31 percent of respondents) for planned HR
technology investment in the next 3 years. Analytics will allow HR to not only be involved in managing
talent, but to also collect clearer information on its supply chain of talent and where the most demand for
particular skills lies. Rather than acting on instinct alone, the HR function will be able to provide a far more
granular roadmap of how the organisation’s people resources need to be reshaped to deliver on the corporate
strategy.
Data analytics gives HR departments the long-overdue chance to become more empirical, to provide hard
evidence for their opinions, thereby gaining much-needed credibility at the highest levels of the business.
Kate Terrell, vice president, Human Resources, Global Products Organisation, at Whirlpool Corporation, a
household appliance manufacturer, explains: “When you arm a business partner of the future with analytics,
and they can share the facts with their teams to help drive better decision-making, it allows you to be much
more strategic, much more insightful, and potentially, much more laser-focused on where you should be
spending your time.
The future of HR: Eradicating the stigma
It is practically a business truism that the HR function is not well respected at many organisations. Whether
deserved or not, this stigma is clearly evident in the global survey results.
Only 15 percent of our survey respondents see HR as able to provide insightful and predictive workforce•
analytics.
Only 17 percent view it as able to demonstrate measurably its value to the business.•
Strikingly though, 81 percent of respondents see talent management as a key competitive advantage over
the coming 3 years. There clearly remains a vast gulf between the perceived importance and the perceived
effectiveness of HR today. At the very least, HR has a perception problem. In many cases it may have
actually failed to deliver real value. As the shifting challenges of globalisation and virtualization combine
with the new technological tools available to enable a reshaping of the HR function, executives should take
ROBERT BURTON
KPMG
HR Transformation
Center of Excellence
I believe... that HR functions have tried for
the past 15 years to tranform themselves
into strategic players and earn a place
at the leadership table. But they’ve done
so with limited success because they have
focused on rolling out generic HR models
and universal best pratice, rather than
customized solutions that support the value
drivers of the business. Now they’ve caught
in what I call the “doom loop”.

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
a number of steps to improve the function’s contribution
and its image.
Make the value of HR more prominent
and understood
Perceptions about HR in the wider company may arise
from the very nature of its role. As the HR function works
behind the scenes, many in the organisation may not
be aware of the good things that it is doing. “This is an
inevitable part of being a staff support role where HR is
the architect and the line managers are owners of the
work,” says Professor Ulrich.
HR practitioners need to make sure the company knows and understands the value they can deliver, in part
by insisting on being included in strategic conversations. It also involves understanding the needs of the
whole business better in order to make that contribution. Learning to listen deeply is one of the skills that HR
functions need to develop, not only in terms of the context of their role but in terms of continually improving
the organisation.
Think, understand and communicate in the language of business
HR needs to eliminate the jargon of its specialization (the same challenge IT continues to face) and begin
to link its work more explicitly to business value. The right business language helps to open the door, but it
is also important to provide a robust business case for projects. It entails thinking more carefully about the
specific business outcomes of the actions that HR recommends. What is the impact on customer service, or
the reduction in costs, or the increase in staff loyalty, or other metrics that are more specifically relevant to
the line managers and departments being supported? Importantly, it is also about taking a fuller perspective
of the whole business, including both internal factors as well as external business conditions, and creating
HR strategies to fit. In turn, this requires a far deeper grasp of the organisation’s core business model and
strategy and the implications this holds for the rest of the business – to date, something that far too few HR
practitioners have mastered. To put this in context, a business that fundamentally focuses on providing low-
cost goods will require a fundamentally different HR strategy than one that is focused on delivering leading-
edge innovation.
Move from administration to higher-value-added activities
A technology-enabled HR function will allow professionals to avoid being immersed in the minutiae of record-
keeping, transactions and life-cycle processes. But it will also likely reduce the number of HR staff that
companies require. These slimmed-down departments will then be able to focus on providing more strategic,
higher-order services.
Some of HR’s traditional administrative work will almost inevitably find another functional home, a shift that
45 percent of respondents expect to occur in the next 3 years. There is no compelling reason for HR to
manage the transactional administration of payroll, benefits, pensions or mobility (transfer administration),
particularly where managed on a contractual outsourcing basis. Of course, HR would remain the architect
of these systems. But once the desired model is established, there is no reason why HR needs to pedal the
wheels.
PAULETTE WELSING
KPMG
HR Transformation
Center of Excellence
Ibelieve...wellthought-outpredictiveworkforce
analytics could become as important to the
CEO as the blalance sheet and P&L statement.
Technology and workforce analytics could
really shake up HR as we currently know it.

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ICT JOB MARKET OUTLOOK IN MALAYSIA | JUNE 2013
Conclusion
Rethinking Human Resources in a Changing World has provided us with a fresh view of the path ahead for
leaders of the HR function. We believe that a number of areas such as workforce analytics, talent management
and technology will reinforce the need for HR to make the people agenda as important to business leaders
as the balance sheet and P&L statement.
Many of the challenges identified in the global study are long standing. But they are no less urgent for that.
Indeed, there is no escaping the prospect of a shrinking and weakened HR function in the coming years.
Quite simply, HR has to break out of the trap it has been stuck in for far too long.
Unfortunately, there are no simple solutions, no generic approaches or best practices that will suddenly
enable the HR function to become more effective and respected. HR needs to focus on delivering unique
talent solutions tailored to each company’s circumstances and requirements.
To do this, HR must develop a deep understanding of the business – in the same way, and using the same
“language”, as other managers. The measures it proposes must be tied to business outcomes: the impact
on customer service, the reduction in costs, the support of a specific new growth area, the increase in staff
loyalty and so on.
While communication has a role to play, particularly when it comes to managing expectations – after all, HR
needs time to do its work – the required antidote is a relentless focus on identifying ways of adding value to
the rest of the business, and proactively meeting the needs of HR’s customers.
For many HR functions, data analytics is an ingredient that has long been missing, for example, it is a way
of providing hard evidence about employee-related needs and opportunities and the impact of HR. The
insights that can be gleaned from rigorously collecting and analyzing data, and creating insightful forecasts
on the back of it, is a key tool in enabling HR to shape the organisation’s people resources to deliver on its
underlying corporate strategy.
But this is not just about employing the latest technologies or tools. It is about the HR function using an
empirical approach to deliver a unique and differentiated people management strategy that is closely aligned
with the company’s goals – and in the process of doing so, restoring HR’s much-needed credibility at the
highest levels of the business.
This study suggests that HR perceives its biggest current challenge to be seizing the opportunity to transform
itself into a strategic player.
Acknowledgements
The above article was a reproduction from a global study by the Economist Intelligence Unit between May &
June 2012, commissioned by KPMG International.

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The Right Talent Development
Strategy for Top Talents?
BY KEN LEE, DIRECTOR, KPMG MALAYSIA

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Introduction
Your organisation is unique, and so is the mix of talent you need to deliver your business strategy. Why, then,
do so many organisations continue to take a generic ‘best practice’ approach to one of their most important
strategic levers: how best to develop their top talents?
Do you develop your top talents the same way as you develop the broader employee population? Or should
you take a unique and “out-of-the-box” approach?
After all, how well an organisation develops its talent can make or break its business. Developed well, and the
organisation will be singing in harmony. But developing talents poorly – and things soon start going off key.
Your talent strategy for your organisation – depends largely on how well you’re able to develop your top
talents differently so that you will continue to win in your markets. What follows are several ideas to help guide
you through this process and find a compelling approach on “How best to develop your top talents with the
right talent development strategy”.
Who are your Top talents and why are they different from everybody
else?
Since the publication of McKinsey’s seminal study on “War for Talent” in 1998, many organisations to take
the stand that managing talents is similar to managing their human capital. This view has evolved over time.
“Talents” have been “studied”,” assessed” and “measured” countless times and approaches and definitions
for talent spotting are many. What remains clear is that views on“potential” is somewhat a generally acceptable
word associated to talent.
One approach to identify top talent is based on their performance and potential.
On assessing performance, a typical approach is to look at performance ratings and the track record of
consistently delivering high performance. When it comes to assessing potential, it is It is universally recognized
that potential is a difficult thing to objectively assess. Nevertheless historical performance alone is not enough
to predict future success. Some of the valuable prompts used to assess potential include key questions
related to ambition, ability, and engagement.
Two sets of illustrative components used to assess talents are:
VALUE
Performance
Performance
Management Process
Potential
Talent Management
Process
TRACK RECORD ABILITY AMBITION ENGAGEMENT+ + + +
For each of these criteria above, organisations (traditionally HR practitioners) will need to support the business
by asking further questions and by pushing them to provide specific examples.
Your top talents are those quality people who are your next generation of leaders, critically important to the
future success of your business. They are also known as the “Emerging Leaders” a term used to explain
the strategic importance of leaders who are committed to role modeling, coaching and inspiring others to be

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the best they can be. They are your top 5% and differ clearly from the rest of the 95%. Many organisations
continue to place strong emphasis on high-potential employees, a critical talent pool. They are provided with
different career paths and development strategies.
Benefits of having a different developmental strategy for your top talents
One of the direct benefits of developing your talents differently is that it will enhance your ability to retain
top talents. This has been a proven strategy for organisations that are committed to invest on developing
their next generation of leaders. As top talents are the top 5%, “A” performers, many of organisations
maximize the contribution of talent people by providing them with stretch experiences to allow them to make
a difference. What we have also found in recent years, is that increasingly, many organisations have begun
this process of developing their top talents in their early stage of their careers. This will not only build greater
breadth in the required leadership skill sets but inspire the key talents to extend their bandwidth as industry
recognized leaders in their market place.
For the top talents, studies have indicated that it provides them with the ability to make an impact and
maximize contribution to the firm. A differentiated developmental track makes them feel valued as an
Emerging leader and this goes a long way in terms of retaining them.
What is the best development model?
A preferred developmental strategy for nurturing top talents is to provide them with adequate stretch
experiences. These stretching experiences have been identified by many successful Leaders and professionals
- have indicated through their feedback that stretch experiences have given them the transformational skills
and experience to add the most value to their development and progress in their careers. The stretch should
help top talents develop skills that help set them apart from the broader employee population, prepare them
to meet client challenges and the career hurdles ahead. Below are some examples of stretch experiences
that are aimed at ensuring top talents get a wide variety of experience as they work towards becoming the
next generation of leaders.
The following example is a combination of experiences which have been structured around ‘what’ top talents
typically perform in their role. While many organisations may adopt a different approach to develop people
along with their unique competencies, this example is only intended to be a generic one which will help
provide some ideas which you can take away:.
Business Development & Sales
Your ability to spot and convert business opportunities for your organisation is key to your future success
– growing accounts, leading successful pitches, bids and converting new relationships into clients for your
organisation and leading and contributing to a variety of sales.
Some stretch ideas:
Negotiation.• Provide real opportunity to experience first hand negotiation with a substantial stake with
key target clients.
Evidence of winning work.• Experience winning new work based on personal relationships developed,
marketing initiatives lead and long term relationship development. Establish their own profile/brand in the
market to generate a pipeline of future sales
On a Key Account for a key client,• Play an active role on a strategic Key Client Account, taking responsibility
for driving forward account management activity.
Involvement in a significant pitch/bid/proposal• . Play a key role because of your specialist technical or
sector knowledge.
Cross selling.• Draw on a wide internal network to facilitate introductions to clients that lead to cross

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function sales or invitations to tender, beyond the initial scope of the work. Maintained and invested in
developing relationships with clients
Evidence of leading a major pitch.• Lead a complex, high value and/or highly competitive major pitch with
minimal support from Leadership, resulting in a win or positive client feedback and strong sustainable
relationships.
Develop a new business area,• value proposition or marketing approach. Personally responsible for a
change in the go to market approach in their area, shaping a new proposition, taking it to market in an
innovative way, packaging offering in a different way – that has resulted in new leads and wins for your
organisation.
Managing & Leading People
As we work with people, our leader’s skills in both managing and leading teams are critical. A wide variety of
responsibilities are crucial, ensuring you are able to manage, and most importantly to inspire and engage our
people to create a high performance culture.
Some stretch ideas:
Manage complex and/or multiple teams and projects.• Manage, across a number of complicated
projects or workstreams, teams and the use of internal experts, as well as maintaining direct and senior
communication with key stakeholders. Has been responsible for building team morale, evaluating
performance and resolving difficult situations with the team or client.
Lead a multi-national and/or virtual team.• Lead a large or complex team with members from different
countries, integrating different cultures, expectations and delivery styles, making use of the latest
technology and communication tools to effectively meet the client’s needs.
Leads cross functional teams.• Responsible for client delivery teams from across functions, responsible
for identifying and recruiting the necessary internal expertise, managing conflicting priorities and delivery
approaches to deliver a seamless and top quality service to the client.
Mentoring.• Assume a mentoring role for people in a different part of the business
Delivers training or acts as a Development Centre observer.• Co-delivers training on non technical areas
to junior colleagues or observes Development or Assessment Centres for Managers or Senior Managers
Strategy and communication.• Supports the Firm’s and/or their function’s strategy, by facilitating
‘Engagement’ or ’Cascade’ sessions or senior level business planning meetings.
Team growth and recruitment.• Contributes to longer term resource planning discussions and acts as the
final, deciding interviewer in graduate or experienced hire recruitment.
Leading Client Delivery
Being able to demonstrate excellence in a variety of client delivery scenarios is essential for your reputation
and your organisation.
Some stretch ideas:
Significant responsibility for profitability & financial performance.• Has a client portfolio of a size
expected by country and function. Is responsible for, or contributes to, team financial performance of
sizable client portfolios
Advise a client through a crisis.• Play a primary role in guiding a client through a crisis or major change,
eg acquisition, PR crisis or major restructure programme.
Leads large or complex accounts.• Responsible for leading delivery teams on large and/or complex
accounts, being accountable for the deliverable, whilst also being responsible for client management
(stakeholder management, communication, etc) and team management (workflow management, team
and individual performance, etc).
Resource planning.• Act as, or advise, the resource planner for a department, balancing conflicting
priorities and stakeholders within tight limitations.

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Innovation.• Apply innovative approaches & skills to work, which has added value and been well
received by the client, eg through delivery methods, account or project management, project outcome,
communication etc.
Cross-Function Experience & Mobility
Gaining experience in other functions, countries and organisations helps you to spot opportunities to add
value to your clients, to operate with a one organisation mindset and to develop broad networks. Immersing
yourself in another area of our business, or with a client, gains a depth of knowledge, experience and
networks that can’t be gained through research and conversations.
Some stretch ideas:
Time in another function.• Spend 6 months or more in another function at Manager level or above,
delivering work not directly aligned to original skill set.
Time on international assignment.• Spend 12 months or more on secondment to another country
(preferably at a senior grade and to a strategic or culturally different location).
Strategic project.• Take on significant responsibility on a project of strategic importance for the organisation,
eg off shoring or restructuring.
Relocation.• Relocate to other offices or functions permanently, or long term, at a senior level, building a
new network and client base.
‘Out of the box’ secondment.• Complete an approved “out of the box” experience, which meets the
following criteria: Secondment to: a client, Project support to one of the core Enabling Projects, Executive
Assistant to a member of the Board or Executive, or Government departments, a Regulatory Body or
Industry Body, a non-government organisation etc.
The Corporate Executive Board through its Learning & Development Roundtable approach, designed
a portfolio of skills and work experiences top talents need for future leadership roles. At the core of this
approach is “high impact development activities”. These development activities are aimed at creating the
greatest impact on performance. Some of these activities include:
Stretch & challenge : Career advancing job assignments, challenging work situations that push one beyond
his/her comfort zone
Connecting to other key Leaders: work with different, “difficult” and “demanding” leaders. Learn from
them
Obtain feedback: Ask direct reports to provide feedback on your greatest strengths and areas for improvement,
serve as a sounding board for difficult challenges
Practice a new skill: Learn a new skill , practice it & obtain feedback

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Closing the Demand-Supply
Gap in ICT Talents
BY ASSISTANT PROF. DR. HO CHUK FONG & ASSISTANT PROF. DR. VEE VOON YEE,
UNIVERSITY MALAYSIA OF COMPUTER SCIENCE & ENGINEERING (UNIMY)