Top Job Demand for Engineers in Malaysia

High Job Demand for Qualified Top Engineers in Malaysia

The shortage of qualified and skilled engineers is at an alarming state. During his address at the Malaysia Artificial Intelligence Nexus 2024 launch event, Anwar emphasised the critical need to address the shortage of 30,000 engineers, amid the importance of maintaining high quality standards alongside quantity improvements.

There is a high demand for engineers due to several factors. One reason is that technology is constantly improving, creating a need for more engineers. In addition, industries place a strong emphasis on innovation, thereby increasing the demand for engineers. The demand is especially high in industries like electronics, semiconductors, manufacturing, construction, and technology. Malaysia needs more engineers to help the country achieve the United Nations Sustainable Development Goals (UNSDG) to build a sustainable future, the Science, Technology and Innovation Ministry (MOSTI) said.

According to TalentCorp and the Institute of Labour Market Information and Analysis (ILMIA) under the Ministry of Human Resources (MOHR), engineering is one of the most critical occupations listed under The Critical Occupations List (COL) report. This report is developed using data from employers and provides a big picture of the skills and occupations in demand within the industries.

Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz says Malaysia’s tertiary institutes produce only a tenth of the 50,000 engineers needed in the core electrical and electronics (E&E) industry of the manufacturing sector.

Demand for qualified engineers in Malaysia is increasing. In order to succeed in the engineering field, students must choose a university that has the experience and facilities to equip them. In addition, soft skills such as an English speaking environment, leadership skills, communication skills and internship programs will help the graduate stand out and be very successful.

You may also be interested to read:

• Top Engineering Degree Courses to Study in Malaysia
• Top 8 Engineering Courses to Study in Malaysia
• Top 10 Private Universities in Malaysia for Engineering Degree, Foundation & Diploma
• Top 10 Private Universities in Malaysia for Engineering
• Why Study the Foundation in Engineering at a Top Private University in Malaysia?
• Why is the Accreditation by Board of Engineers Malaysia (BEM) important in my Engineering Degree Studies at Private Universities in Malaysia?
• Education Pathway to Professional Engineer in Malaysia after Studying a BEM Accredited Engineering Degree

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Increased Job Demand for Engineers in Malaysia

Engineers are professionals with a degree qualification recognised by the Washington Accord for Engineers and are regulated and registered by the Board of Engineers Malaysia (BEM). A Professional Engineer is a person registered under Section 10(2) of the Registration of Engineers Act 1967 (Revised 2015).

In Malaysia, there are various sectors for our engineers to serve including consultation, research & development, construction, building services, maintenance, manufacturing, plantation, aviation, maritime, sales, and oil & gas industry, as well as institutions of higher learning like universities and colleges as a lecturer or a teaching engineer.

Malaysia also needs more engineers. At the end of 2022, there were around 187,900 engineers registered, according to the Board of Engineers Malaysia. This leaves the country’s engineer-to-population ratio at one to 170. This is lower than in developed countries such as Germany and France, where the ratio is at one to 100. To fulfil its 2030 ambitions, Malaysia needs to double its current number of engineers

Unfortunately, the reality is that only 35% of the graduate engineers (GE) registered with the Board of Engineers Malaysia (BEM). BEM is owned by the Malaysian government to administer the registration of PE. Although according to Malaysia’s law through the Registration of Engineers Act 1967 (Revised 2015), all practising engineers must be registered with the BEM as GE to work as an engineer legally. According to the statistic published by BEM in February 2020 (Figure 1), only 10% out of 142,000 registered Graduate Engineer (GE) successfully obtained the certification as Professional Engineer, which is less than 4% of all engineers in Malaysia.

At least five most common engineering fields run the country today, which are mechanical, chemical, electrical, electronic, and civil engineering. Civil engineering shows the highest number of registered Graduate Engineer followed by mechanical, electrical, electronic, and chemical engineering.

More than 50% of the total registered Graduate Engineer have been upgraded into Professional Engineer for at least two engineering disciplines which are civil and electrical engineering. For mechanical engineering, the number of Graduate Engineer converted into Professional Engineer is slightly less at about 40%. The least amount of converted Graduate Engineer into Professional Engineer status is demonstrated by chemical and electronic engineering.

Job Prospects for Engineers in Malaysia

1. 

   Electrical & Electronic Engineering

   • The E&E industry is a major contributor to Malaysia’s economy, and it is the country’s biggest export sector with exports of RM593bil in 2022, accounting for 38% of total exports. The industry also accounts for 78% of Malaysia’s external trade surplus of RM255bil, and continues to attract the highest level of investments (foreign and domestic), with a record-breaking investment of RM148bil in 2021, comprising 76% of the country’s total investment in the manufacturing sector.
   • The E&E industry employs about 590,000 Malaysians but only 0.3% of the E&E workforce hold an advanced degree. It also indirectly provides employment for millions of Malaysians in other industries.
   • In the electrical and electronics (E&E) sector, with the investment, trade and industry ministry (Miti) stated in 2024 there is a demand for 50,000 engineers in this industry. In a separate report, the Small and Medium Enterprises Association of Malaysia (Samenta), which mentioned that Penang alone was facing a shortage of 50,000 engineers to meet the demands of the semiconductor industry in 2023.
   • Malaysia is the sixth-largest exporter of semiconductors worldwide and is starting to emerge in the global semiconductor manufacturing supply chain. The country remains a major player, cornering 13% market share in global chip testing and assembly. Over the past year, a total of RM52 billion in semiconductor investments have been secured, potentially creating 11,000 jobs in the sector. Rising industries that need a steady supply of chips are keeping demand strong. Where semiconductors are concerned, the automotive, data storage, and wireless sectors will drive at least 70% of the manufacturing industry (2023 Job Market & Salary Trends Malaysia – Randstad)
   • Despite expectations of a global economic slowdown in 2023, a survey shows that almost half of the electrical and electronics (E&E) companies in Malaysia remain focused on recruitment to cope with talent shortages and high turnover rates. Malaysia Semiconductor Industry Association (MSIA) president Datuk Seri Wong Siew Hai pointed out that the talent shortage meant that the majority of respondents in the survey are still struggling to attract new talent (specifically engineers) while more than half of the companies expect to suffer from high employee turnover rates of above 10%.
   • Future of E&E in Malaysia: The E&E manufacturing space is evolving, as more and more companies move into more knowledge-intensive, hi-tech, innovative, and higher-value-add activities. With the availability of a sophisticated talent pool – such as in the integrated circuit (IC) design segment – Malaysia is ready to shift forwards into the development of autonomous vehicles, smart machines, and robotics, among other things. AI provides huge future opportunities as the key technology that will drive the emergence of a fully-connected Industry 5.0 society and
     economy. AI’s future dominance will help communities to make accurate decisions due to precise forecasting capabilities and business process optimisations. Future industry megatrends are forecast to be shaped heavily by the advancements made by Industry 4.0 pillars.
   • The semiconductor industry continued to play a pivotal role in Malaysia’s engineering sector, with a steady demand for engineers skilled in semiconductor manufacturing processes. At the same time, the industry’s focus on emerging technologies such as 5G and Internet of Things (IoT) led to an uptick in demand for professionals skilled in microelectronics and nanotechnology.
2. Mechanical Engineering
   • Malaysia’s manufacturing sector is expected to expand by 4.4 per cent in 2023, faster than the official forecast of 3.9 per cent, said Public Investment Bank Bhd (Public IB).Projections under the NIMP 2030 anticipate significant growth in Malaysia’s manufacturing sector, with manufacturing GDP expected to surge by 61% to RM587. 5 billion by 2030. Moreover, the number of enterprises operating within the manufacturing market is projected to reach 246,500 by 2024, with an anticipated CAGR of 61.62% from 2024 to 2028.Additionally, the number of employees in the sector is expected to reach 4.87 million in 2024, reflecting a CAGR of 19.22% over the forecast period. As Malaysia attracts more hi-tech and innovation-driven investments, particularly in green manufacturing and renewable sectors, the plan aims not only to enhance labour productivity but also to support Environmental, Social and Governance (ESG) goals. Employment opportunities are set to expand, providing livelihood for 3.3 million Malaysians, driven by the creation of high-skilled jobs and advancements in automation. Moreover, median salaries in the manufacturing sector are projected to increase by 9.6% to RM4,510, reflecting a shift towards higher value-added activities and the creation of high-skilled job opportunities.
3. Mechatronic Engineering

   

   • In Malaysia, drones can inspect buildings and survey job sites, while 3D modelling visualises building projects so workers can virtually check construction progress without going on-site. Robotics like Boston Dynamic’s Spot will also gain more interest as companies seek greater efficiencies while protecting the health and safety of their workers in dangerous environments. (2023 Job Market & Salary Trends Malaysia – Randstad)
   • Malaysian Aerospace Industry: The Malaysian Government has emphasised the development of the aerospace industry, its supply chain, and its competency through industry-led research and technology (R&T). On top of the 11MP initiatives, the Government has also put in place the Malaysian Aerospace Industry Blueprint 2030 (MAIB2030) to help drive the industry’s growth.
     Underscoring the Asia-Pacific region’s air travel market growth, The Boeing Company predicts that demand for planes will pick up over the next decade, with the region needing almost 17,485 planes. The region will also account for 39 per cent of global deliveries of passenger and freight planes over the same period. With 40 per cent of aerospace industry growth coming from Asia-Pacific alone, and a collective GDP of four ASEAN countries exceeding US$1 trillion by 2030, the future of the industry is in Asia. Furthermore, the Subang Airport Regeneration Plan (SARP) will lead to the creation of some 8,000 jobs, says KLIA Aeropolis Sdn Bhd and the project will be finished in phases by 2030.
   • The Malaysian aerospace industry has grown significantly to become the second-largest in Southeast Asia, providing more than 27,500 jobs mostly in the MRO and aero-manufacturing subsectors. In the industry’s latest figures, MIDA has approved a total of 31 projects between 2017 and 2019, with a total investment value of RM3.54 billion that has created some 4,038 job opportunities. In its early days, the Malaysian aerospace industry had a small base and catered primarily to the domestic market; now, the industry has more than 230 domestic and foreign companies invested, with RM16.2 billion in total revenue generated as of 2019. By 2030, the industry is projected to contribute revenue of RM20.4 billion for MRO, RM21.2 billion for aero-manufacturing, and RM13.6 billion for engineering and design services, and the creation of more than 32,000 high-income jobs.
4. Telecommunications Engineering
   • Telecommunication engineers will be in great demand due to the fast evolution of technology and the ever-increasing demand for reliable telecommunications networks. They are responsible for designing, implementing, and maintaining sophisticated telecommunications systems. Therefore, they are critical in providing clients access to dependable and secure communication networks.
   • According to SEEK Employer, Malaysia’s technology outlook estimates around 39,000 new value-add jobs to be created by the eventual 5G implementation. Among these new jobs would be 5G Network Engineers, who would help usher telco companies into their next phase of evolution.
   • Malaysia’s overall telecom market revenue is estimated to grow at a CAGR of 3.7% between 2023-27, to reach ~USD 10.6 billion (MYR 46.6 billion) by 2027. The Malaysian telecommunications market is poised for significant expansion, primarily propelled by robust growth in the enterprise and fixed broadband segments.
   • According to Mordor Intelligence, the Malaysia Telecom Market size is estimated at USD 8.33 billion in 2024, and is expected to reach USD 9.07 billion by 2029, growing at a CAGR of 1.72% during the forecast period (2024-2029). Most major telecom companies, such as Edotco, Sacofa Sdn Bhd, Digi telecommunication, Maxis, and Celcom, are based in Malaysia and promote innovation by making significant R&D investments consistently. Furthermore, Malaysia’s telecom industry has made further strides in expanding its services that support the 5G network.
   • The NIMP 2030 places significant emphasis on smart manufacturing, integrating physical and digital processes to optimise operations and enhance efficiency.  Technologies such as the Internet of Things (IoT), data analytics, artificial intelligence (AI), robotics, cloud computing and cyber security are pivotal in this transformation, facilitating informed decision-making and streamlined production processes.
5. Civil Engineering

   

   • The steady growth of the Malaysian economy has provided a solid foundation for the expansion of the construction industry. Economic growth has driven demand for residential, commercial and industrial buildings as well as increased investment in infrastructure projects. The Malaysian government has played an important role in promoting the construction industry by stimulating the economy through the implementation of various construction projects and infrastructure programs such as the construction of roads, bridges and public transportation systems. In addition, the government has also introduced social welfare programs such as low-cost housing schemes, further boosting the demand for the construction sector. Malaysia’s construction industry has attracted significant FDI, particularly in the real estate and commercial construction sectors. Foreign investors are optimistic about Malaysia’s high growth potential and strategic position, which has boosted the construction sector. In 2023, the Malaysia construction market size was estimated at USD 35.5 billion and is expected to reach 67.3 billion USD in 2033, growing at a CAGR of 6.6%. Although the Malaysian construction industry will face the challenges of lack of skilled labor and lax regulation, it will continue to grow in the future with the support of government policies and advanced technology.
   • The Mass Rapid Transit 3 (MRT3) Circle Line, the final piece to complete Kuala Lumpur’s urban rail network, will be fully operational by 2030.
   • Similar high-impact railway projects include the Light Rail Transit Line 3 (LRT3), which will connect two million people between Bandar Utama and Klang by 2024, extending rail connectivity to the Western Corridor of Greater Kuala Lumpur and Klang Valley.
   • On the other hand, the East Coast Rail Link (ECRL) project will connect Kota Bharu in Kelantan to Port Klang in Selangor, linking the East and West Coasts of Peninsular Malaysia.
   • The finalisation of the Johor -Singapore Special Economic Zone and further clarity on the Kuala Lumpur-Singapore high-speed rail which would further spur the Johor property boom. In addition, the southern state was also witnessing a rise in the data centre and industrial segment that could help stimulate its economy and consequently property demand.
   • According to Payscale, the average expected salary of civil engineers is around RM39,703 per year, with an hourly rate of RM15.00. The base salary is RM3,000 per month. In addition, the Jobstreet Salary Insights provides similar average data. The average civil engineer salary is RM3,200, while the most common at the lowest scale is around RM2,600.
6. Petroleum Engineering
   • Outlined in the 2024 Budget, the government will allocate at least RM10 billion in funding to benefit the oil and gas, services, and equipment (OGSE) industry, with Pengerang given special status and incentives for its chemical and petrochemical activities. This will alleviate businesses’ cost pressures that were created by high inflation and oil price volatility. (2023 Job Market & Salary Trends Malaysia – Randstad)
   • According to Ambition Market Insights 2024 report, hiring in the oil & gas and energy & utilities industries grew significantly due to increased focus on sustainability and investments in carbon capture & storage (CCS) projects. There are increased job opportunities for engineers within
     energy & environmental industries.  In 2023, the energy industry saw a positive trend, partly
     due to the Malaysian government’s investment in solar power projects. These projects were anticipated to generate a steady flow of contracts throughout 2024, creating more opportunities for engineers in the renewable energy space. On top of that, waste-to-energy (WTE) solutions also
     gained traction which led to the construction of more WTE plants nationwide. This trend provided engineers with opportunities to work on projects converting non-recyclable waste materials into heat, electricity, or fuel, in line with environmental sustainability objectives
7. Chemical Engineering
   • ‘Chemicals and chemical products’ is one of the six main new growth areas that the government has identified to accelerate Malaysia’s transformation into a high-income nation. The chemical industry makes up 10.5% of the local manufacturing sector and contributed 2.6% to Malaysia’s gross domestic product (GDP) in 2021, equivalent to RM35.5 billion. (2023 Job Market & Salary Trends Malaysia – Randstad)
   • Malaysia’s Chemical Industry Roadmap 2030 (CIR2030) is expected to increase the sector’s gross value add (GVA) to the overall economy to more than 4.5 per cent by 2030 from 3.4 per cent currently. This will imply an additional RM40 billion in value, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz. He said the current contribution of the chemical output value to the industry is between RM80 billion and RM90 billion. “With the CIR deviated policies and strategies put in place this will move up the value chain with the high value products and would add additional RM40 billion by 2030

What is the Salary for Engineers in Malaysia?

According to the Board of Engineers Malaysia (BEM), the estimated starting salary of engineers, including allowances in the civil service in 2000 was RM1,800, while it was RM3,500 in 2021, an increase of almost 100% over 20 years.

BEM also said determining the minimum salary for engineers and engineering teams is outside of its jurisdiction, because according to Section 4(1)(d) of the Registration of Engineers Act 1967, BEM only serves to set the fee scale for professional engineering services.

In the latest JobStreet Salary Report, the engineering industry found the highest median salary growth in Malaysia from 2020 to 2021. This data only proves that engineering is, indeed, a lucrative career that requires a unique set of skills. Engineering opportunities see competitive compensation with the skill level needed to handle equipment, solve complex problems, and develop comprehensive design systems.

What are the top engineering jobs in Malaysia? (Jobstreet)

• Chemical Engineer
  • Average Pay: RM3,100
  • Maximum Salary: RM5,600
  • Specialisations: Biochemical engineering, petroleum engineering, and applied chemistry
• Civil Engineer
  • Average Pay: RM3,200
  • Maximum Salary: RM6,000
  • Specialisations: Structural engineering, environmental engineering, and transportation engineering
• Mechanical Engineer
  • Average Pay: RM3,600Maximum Salary: RM7,200
  • Specialisations: Robotics and automation, industrial engineering, and aircraft engineering
• Electrical Engineer
  • Average Pay: RM3,800Maximum Salary: RM8,500
  • Specialisations: Computer engineering, telecommunications engineer, and electrical design engineers
• Software Engineer
  • Average Pay: RM3,900Maximum Salary: RM7,300
  • Specialisations: Data science and machine learning, information technology, and cybersecurity

Job Demand for Engineers in Malaysia According to ‘Critical Occupations List’ (COL) 2022/2023 by TalentCorp

Malaysia’s Critical Occupations List (COL) was created by the government to effectively monitor shortages and identify the country’s most in-demand skills. According to the new World Bank report, the COL is an innovative platform for keeping ahead of changing labour market demands associated with new technologies, automation, and Industry 4.0.

The Critical Occupations List (COL) is a set of occupations in demand that identifies the skills imbalance across 18 economic sectors in Malaysia.

In the 2023 COL, the report found that the following engineering jobs below were in high in demand. The companies have reported that the vacancies in the occupation group are for fresh graduates with 0-2 years of experience and mid-level personnel with 2-5 years of experience. Employers cited the key recruitment challenges as a lack of relevant job experience among applicants, too few applicants, or no applicants at all, and expected compensation beyond the market rate.

The MyCOL 2022/2023 consists of 37 critical occupations at the MASCO 4-digit level. For the engineering occupations, listed are:

• 2141 Industrial And Production Engineers
• 2142 Civil Engineers
• 2144 Mechanical Engineers
• 2146 Mining Engineers, Metallurgists And Related Professionals
• 2151 Electrical Engineers