3 1-1 GDP GDP growth rate Population size Labor force Percentage distribution of labor force by ethnic group
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3 INDEX Overview: Malaysia 2 1 Economy GDP GDP growth rate 5 2 Population Population size 6 3 Labor force and the related statistics Labor force Percentage distribution of labor force by ethnic group Labor force participation rate Number of employed workers Unemployment rate Number of registrants 17 4 Wages Monthly wages (median) 18 5 Hours worked Hours worked 22 About this document 24 About the information compiled in this document 24 Contact information regarding this document 24 Company profile 25 About PERSOL Research and Consulting 25 About PERSOLKELLY Consulting 25
4 Overview: Malaysia Straddling the South China Sea, Malaysia is a nation spanning about 330,000 km (about 0.9 times the area of Japan) located on the southern Malay Peninsula and northern Borneo. Malaysia s total population stands at approximately 31,190,000 and rising, due to an influx of foreign workers and a less than 2.0 total fertility rate. In total, 94.2% of the population is under 65 years of age; Malaysia is in a period of population bonus. Furthermore, foreigners represent 10% of Malaysia s population, and the nation has one of the higher percentages of foreign workers in the world. The largest ethnic group is Malays, followed by Chinese, Indian and other groups. Malaysia s rate of GDP growth has continued to hover around 5% for the past several years, reaching 1,157 billion ringgits (approx billion USD) in The remarkable expansion of the manufacturing industry since the late 1980s has been a primary driver of economic growth; in recent years, however, the percentage of total GDP held by the manufacturing industry has decreased, with the service industry, growing year-over-year instead. Regarding academic background in the labor force, the highest educational level of an overwhelming number of workers is middle school, although the number of workers with a college degree has been on the rise annually. The majority of the employed population, about 3.2 million, works in service and sales; the number of workers in agriculture, fishing, and forestry is on the decline. By industry, the number of workers employed in the construction, wholesale & retail, and lodging & food service industries shows strong growth. Malaysia s wages have grown along with its economy. The monthly median salary has increased from 1,320 ringgits in 2011 to 1,600 ringgits in *GDP means nominal GDP. *Numbers of total GDP in USD are from data of the World Bank. *Currency exchange rate: 1USD=4.28 ringgits (as of August 1, Source: IMF Exchange Rate Archives by Month) In 2015, Malaysia s economy experienced slowdown from the previous year, but it seems to have stabilized. Malaysia s exports have spiked due to a weak ringgit, leading to a trade balance increasingly in the black for two consecutive years. Japan was the second-largest contributor to direct investments in Malaysia; however, Japanese firms expanding overseas have concerns about Malaysia s labor market, citing rising labor costs and difficulties in securing talent. Source:2016 JETRO Global Trade and Investment Report(Chapter 2: Classification by Country & Region), Japan External Trade Organization (JETRO), Overview: Malaysia 2
5 1 Economy Malaysia s total GDP grows each year; it leapt from billion ringgits in 2010 to 1,157 billion ringgits in Services (which includes retail and financing) grew 1.5 times from 2010 to Surveyed values of 2015 GDP by industry reveal that the service industry totaled billion ringgits and the manufacturing industry billion ringgits; these two industries accounted for 70% of Malaysia s 2015 GDP, with the service industry s share showing particularly strong growth every year. Looking at the GDP growth rate plotted in terms of Malaysia s economic growth scale, while there is a degree of scatter every year, the country has maintained a growth rate of about 5% since 2010 with stable growth. *GDP means nominal GDP. 1-1 GDP 1 Economy 3
6 1 Economy 4
7 1-2 GDP growth rate 1 Economy 5
8 2 Population Malaysia s population leapt from 28,588,000 in 2010 to 31,186,000 in 2015 a growth of about 2.6 million in 5 years. Malaysia s population growth rate is 1.5% or above annually, with 2013 netting a growth rate of 2.4%; however, in the medium-to-long term, Malaysia s population growth rate faces a downward trend. According to the United Nations Population Division, Malaysia s population is expected to peak in about 2070 at approximately 44 million people. The composition of Malaysia s population is notable for its large proportions of the young and foreigners. Classifying Malaysia s population by age, its largest cohort in 2015 consisted of individuals in their early 20s, numbering 3,225,000. Age groups in the prime of life, including individuals in their 30s, constitute Malaysia s volume zone. Those under the age of 65 represent 94.2% of Malaysia s total population; therefore, Malaysia is in a period of population bonus. In addition, as Malaysia s population was originally too small to support its expanse of territory and growth potential, the nation has been proactive in attracting workers from overseas; consequently, foreigners now occupy over 10% of Malaysia s population. 2-1 Population size 2 Population 6
9 2 Population 7
10 2 Population 8
11 3 Labor force and the related statistics Malaysia s labor force grew by approximately 2.2 million workers from 2010 to Malaysian citizens comprise about 85% of the employed population, with non-citizens comprising the remaining 15%. This ratio has held steady from 2010 to In 2016, 78.3% men and 52.3% of women in Malaysia were employed, resulting in an average employment rate of 65.8%. The employed population grew year-on-year from 11,899,000 in 2010 to 14,068,000 in In 2015, 5,157,000 workers or over 1/3 of the total employed population held an SPM or its equivalent, as their highest level of education. Classified by profession, the majority of the employed population, 3,189,000 workers, are engaged in the service and sales industries. Conversely, the number of workers in agriculture, fishing, and forestry is on the decline. Looking at the work force by industry, most workers are engaged in wholesale & retail, followed by manufacturing. The employed population in every industry is on the rise, with strong growth in construction, wholesale & retail, and accommodations & food services. The unemployment rate has held steady at about 3%. However, the number of active job seekers fell from 435,421 in 2013 to 276,851 in Labor force and the related statistics 9
12 3-1 Labor force 3 Labor force and the related statistics 10
13 UPSR Ujian Penilaian Sekolah Rendah Primary Scool Evaluation Test National standardized test administered during the final period of elementary education UPSRA Ujian Penilaian Sekolah Rendah Agama Primary Scool Evaluation Test Religion National standardized test administered at the end of elementary education (for religion) PT3 Pentaksiran Tingkatan 3 School Based Assesment Assessment system for individual schools similar to the PMR PMR Penilaian Menengah Rendah Malaysia Lower Certificate of Education SRP/ LCE Sijil Rendah Pelajaran Malaysia Lower Certificate of Education SRA Sijil Rendah Agama Malaysia Lower Certificate of Education Religion National standardized test administered at the end of lower secondary education (Form 3) SPM Sijil Pelajaran Malaysia Malaysia Certificate of Education equivalent to O level National standardized test administered at the end of higher secondary education (Form 5) STPM Sijil Tinggi Persekolahan Malaysia Pre-University Study equivalent to O level National standardized test administered at the end of a college preparatory program (Form 6) 3 Labor force and the related statistics 11
14 3-2 Percentage distribution of labor force by ethnic group 3-3 Labor force participation rate 3 Labor force and the related statistics 12
15 3-4 Number of employed workers 3 Labor force and the related statistics 13
16 3 Labor force and the related statistics 14
17 3 Labor force and the related statistics 15
18 3 Labor force and the related statistics 16
19 3-5 Unemployment rate 3-6 Number of registrants 3 Labor force and the related statistics 17
20 4 Wages Median monthly salaries have continued to rise for both men and women, reaching a median overall value in 2015 of 1,600 ringgits. Large gaps in median monthly salaries are seen based on education levels. Individuals whose highest educational level is SPM and below have a median monthly salary of 1,400 ringgit, while those with a college degree earn several times more, with a median monthly salary of 4,350 ringgits. Large gaps in monthly wages exist between professions. Those in management positions and professionals earn high monthly wages of 5,300 and 4,300 ringgits, respectively, compared to monthly salaries of 1,200 to 1,400 ringgits in the worker class. By industry, wages tend to be high in mining & quarrying and in the electricity, gas, steam, & air conditioning supply industry, with the former industry experiencing a particularly high rate of growth from 2013 to Monthly wages (median) 4 Wages 18
21 4 Wages 19
22 4 Wages 20
23 4 Wages 21
24 5 Hours worked The average number of hours worked per week continued to slowly decline from 2010 to 2015, reaching 47.1 hours per week by A slight scattering between industries is evident, with domestics working the longest, at 68.5 hours per week, and those in education working the least, at 38.0 hours per week. 5-1 Hours worked 5 Hours worked 22
25 5 Hours worked 23
26 About this document About the information compiled in this document The various data and commentary presented in this document has been compiled and written by the Persol Research & Consulting Co., based on information released at the time of this document s creation; its accuracy and completeness are not guaranteed. In addition, the Persol Research & Consulting Co. bears absolutely no responsibility for any damages incurred as a result of the use of the information in this document. Contact information regarding this document Persol Research & Consulting Co., Think Tank Headquarters Overseen by the Persol HR Data Bank, APAC thinktank-rc@persol.co.jp Tel.: About this document 24
27 Company profile About PERSOL Research and Consulting PERSOL Research and Consulting is the PERSOL Group s think tank and consulting firm. Through surveys and research, we uncover and clarify issues surrounding people and organizations in areas such as labor markets, human resources development, new forms of employment, and working styles. We also work to investigate and present solutions. We provide solutions in areas including organizational and personnel consulting, people analytics, assessments, talent management systems, human resources development, and employee training, based on the knowledge built up through our survey and research activities. We link these surveys, research, and solutions organically to help solve the various problems that arise in society and corporations. About PERSOLKELLY Consulting PERSOLKELLY Consulting aspires to be a leading global human resource consulting and professional services organisation committed to shape the future workforce by empowering individuals, organisations and societies. To further align the corporate brand strategy, PERSOLKELLY Consulting is a rebrand of BTI Consultants in Asia and Intelligence SMC in Hong Kong. These brands combine their vast experiences and knowledge in innovative talent development, HR & Management advisory, organisational effectiveness and insights-driven HR solutions to achieve optimal results for their clients in the regions. Today, PERSOLKELLY Consulting is represented in 6 countries, including Hong Kong, India, Indonesia, Malaysia, Singapore and China (operating under Intelligence Anchor Consulting). It is also in active collaboration with PERSOL Research and Consulting in Japan. PERSOLKELLY Consulting is an entity within the PERSOLKELLY company, a joint venture between PERSOL Group, and Kelly Services, Inc, forming one of the largest recruitment companies in Asia Pacific. Company profile 25
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