Abstract
Chapter 2 Literature Review
2.3 Human Resource Forecasting in Malaysia .1 The Beginning of Human Resource Planning
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2.3 Human Resource Forecasting in Malaysia
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Malaysia Plan implemented had focused on education and employment issue back in the nation. To illustrate, the 11th Malaysia Plan has addressed expediting the development of human capital for a progressive nation as one of the six thrusting ideas; as well as inquiring industries to accentuate on technical and vocational education or coaching as one of the six changes in game rules ( The Eleventh Malaysia Plan, 2016-2020 ). On top of that, Vision 2020 which was introduced by Dato Seri Dr. Mahathir Bin Mohamad in 1991 had also put great emphasis on HRD by justifying the needs to promote the development of an educated, flexible, innovative, numerate and multi-skilled workforce in order to become developed country.
2.3.2 Agencies Related to Labour Force of Malaysia
The authority which is directly related to the human resource management in Malaysia is being called Ministry of Human Resources ( abbreviated MOHR ). Established in 1970s, MOHP is mainly to devise labor administration and labor welfare policies; only until mid-1980s, the Ministry was then assigned to facilitate manpower planning through the monitoring and analysis of labor market information, as well as industrial training. Matching the human resource demand with the right skills in the fast changing and technological – advanced world, is apparently the most thrilling challenge in hand. Meanwhile, other parties who engage themselves actively in manpower management and planning of Malaysia are Malaysian Institute of Human Resource Management (MIHRM) who is always at the forefront of the industry to promote good practice of Human Resource Management; Economic Planning Unit ( EPU ) of the Prime Minister's Office with its Human Capital Development section, in charge of safeguarding the optimum deployment of human resources via creating
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employment opportunities and improving the quality of human resources in correspondence to the nation's economic development; Institute of Labour Market Information & Analysis ( ILMIA ) who in – charges of research and surveys towards enhancing the labour market information; as well as National Vocational Training Department whose mission is to formulate the curriculum of training programs towards supplying professional workforce for nation’s economy needs.
As mentioned before, ILMIA plays its fundamental role in serving the labour market information system in Malaysia. Particularly, ILMIA targets to atone and restructure the scattered data sources; as well as to redress the dearth of integration or coordination in compiling labour market data. One of the credits contributed by ILMIA is unequivocally the setup of Malaysia’s first labour market information system portal by deriving data from Department of Statistics Malaysia ( DOS ), government agencies as well as private labour market data compilers in December 2013, in which the data obtained was stored in Labour Market Information Data Warehouse ( LMIDW ).
According to the current sources of data for LMIDW of Malaysia are depicted by the figure below. The major data providers are Ministry of Human Resources ( MOHR ), Department of Statistics Malaysia ( DOSM ) and Ministry of Higher Education ( MOHE ) and inclusion of data from other parties such as Technical and Vocational Education and Training ( TVET ) and Ministry of Youth and Sports Malaysia ( IKBS ) are in planning.
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Figure 2.9 Sources of Data for Labour Market Information Data Warehouse ( LMIDW ) of Malaysia
Source : Game Changers for Human Capital Development and Sarawak Corridor : Moving Towards 2020 ( 2016 )
The MOHRIDB is an integrated database of Jobs Malaysia database ( JobsMy ) and Labour Market Database ( LMD ), specially devised to be used as centralised database system within agencies and divisions of MOHR.
Both JobsMY and LMD are in fact the only two data sources from Labour Department that are included in LMIDW. The rest information such as retrenchments are yet a part of LMIDW system. On the other hand, DOSM retrieved most of its data from monthly Labour Forece Surveys, annual salaries and wages survey and economic census which conducted once in every 5 years. Economic Census and Labour Force Survey are currently the data input for Key Indicators of the Labour Market. Nevertheless, the provision of KILM could only be acquired from DOSM in aggregated form but not as metadata which could be deployed for other purposes unless concesus obtained based on mutual agreement between ILMIA and DOSM.
Last but not least, Ministries of Education and Higher Education provides information on the graduates’ enrolment and output levels.
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2.3.3 Structure of Malaysia’s Current Workforce
While according to the press release dated 16th June 2017 on key statistics of labour force in Malaysia which was updated to April 2017, the structure of Malaysia’s workforce is as shown below :
Table 2.9 Structure of Malaysia’s Workforce
Month–on–month Year–on–year Indicator April
2017
March 2017
Change ( % )
April 2017
Change ( % ) Labour Force
( ‘ 000 )
14,941.5 14,932.5 0.1 14,675.3 1.8 Employed
( ‘ 000 )
14,429.6 14,421.7 0.1 14,163.7 1.9 Unemployed
( ‘ 000 )
511.9 510.8 0.2 511.5 0.1
Outside labour force ( ‘ 000 )
7,122.5 7,121.8 0.0 7,012.5 1.6 Labour Force
Participation Rate ( LFPR ) ( % )3.5
67.7 67.7 - 67.7 -
Unemployment rate ( % )
3.4 3.4 - 3.5 - 0.1
Seasonally adjusted unemployment rate ( % )
3.4 3.3 0.1 3.6 - 0.2
Source : Monthly Labour Force Survey, Department of Statistics Malaysia ( DOS )
Labour force participation rate in Malaysia in overall has been observing consistency over the year at 67.7%. And the nation has successfully brought down the unemployment rate as well as seasonally adjusted unemployment rate by 0.1 % and 0.2% respectively, comparing to 2016.
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