Malaysia’s Critical Occupations List (COL) 2019/2020 – Top 58 Jobs in Demand

The Critical Occupations List (COL) is a set of occupations in demand that identifies the skills imbalance across 18 economic sectors in Malaysia. It aims to be the primary instrument to promote better coordination of human capital policies aimed at attracting, nurturing and retaining talent.
Collated on an annual basis by the Critical Skills Monitoring Committee (CSC), led by TalentCorp and the Institute of Labour Market Information and Analysis (ILMIA) under the Ministry of Human Resources (MOHR), the COL was developed based on recommended international practices. Its compilation process is based on regular consultations with the World Bank.

Because the COL is developed with the data from employers, it provides a big picture of the skills and occupations that are in demand within the industries. It also gives you a better idea of the occupations that will be prioritised by policymakers, especially in the aspects of immigration, education and upskilling opportunities.

COL will continue to expand to create a comprehensive map of Malaysia’s most demanded current and future skills and talent towards Industrial Revolution (IR) 4.0.

The report covers 18 economic sectors:

• Agriculture, Forestry and Fishing
• Mining and Quarrying
• Manufacturing
• Electricity, Gas, Steam and Air Conditioning Supply
• Water Supply; Sewerage, Waste Management and Remediation Activities
• Construction
• Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles
• Transportation and Storage
• Accommodation and Food Service Activities
• Information and Communication
• Financial and Insurance/Takaful Activities
• Real Estate Activities
• Professional, Scientific and Technical Activities
• Administrative and Support Service Activities
• Education
• Human Health and Social Work Activities
• Arts, Entertainment and Recreation
• Other Service Activities

What is a Critical Occupation?

Occupations are considered critical if they are skilled, sought-after, and strategic. The Critical Occupations List is primarily concerned with identifying shortages in occupations that are associated with Malaysia’s growing knowledge-based economy. To accomplish this, the COL is focused on identifying occupations that are skilled. The COL is also interested in determining whether there are mismatches between employers’ demand for certain occupations and the supply of the skills associated with these occupations.

As a result, the COL seeks to identify shortages in occupations that are sought-after by employers. Finally, the COL is designed to be a tool to help policymakers make decisions. Thus, even after identifying shortages in skilled occupations an occupation is only considered to be critical if filling that occupational shortage is consistent with Malaysia’s strategic economic development objectives.

The Critical Occupations List (COL) – 58 Jobs in Demand in Malaysia

For the 2019/2020 COL, 58 occupations were included. This represents 12 percent of the 483 non-military 4-digit occupations included in the Malaysian Standard Classification of Occupations 2013. Most of these occupations are high-skilled occupations at the managerial,
professional, and associate professional level. However, around 14 percent of the occupations on the 2019/2020 COL are semi-skilled occupations, such as craft and trades
workers, and plant and machine operators and assemblers. Three (3) occupations appear on the COL for the first time: Agricultural, Forestry and Livestock Production Managers, Metal Moulder and Coremaker, and Toolmaker and Related Worker.

Over time, the COL has undergone changes to include important and relevant aspects. The evolution of the COL takes into account the expansion of data sources, improvement of calculation of the indicators of shortage, and the expansion of coverage of the stakeholders consulted in the bottom-up process.

The 2019/2020 COL has 58 occupations. This is a slight decrease from the 59 occupations listed in the 2018/2019 COL. In the 2019/2020 COL, there are three (3) occupations that had not appeared in any previous editions of the COL (as shown in below).

Overall, 25 occupations have appeared in a single COL, 13 occupations have appeared in two (2) COLs, 19 have appeared in three (3) COLs, 11 have appeared in four (4) COLs, and 22 have appeared in all five (5) editions of the COL.

MASCO code        MASCO title

1. 1121 Managing Director and Chief Executive
2. 1211 Finance Manager
3. 1212 Human Resource Manager
4. 1213 Policy and Planning Manager
5. 1214 Business Service Manager
6. 1219 Business Services and Administration Manager Not Elsewhere Classified
7. 1221 Sales and Marketing Manager
8. 1311 Agricultural, Forestry and Livestock Production Managers
9. 1321 Manufacturing Manager
10. 1323 Construction Manager
11. 1324 Supply, Distribution and Related Managers
12. 1511 Information and Communications Technology (ICT) Manager
13. 2113 Chemist
14. 2114 Geologist and Geophysicist
15. 2121 Mathematician, Actuary and Statistician
16. 2141 Industrial and Production Engineer
17. 2142 Civil Engineer
18. 2144 Mechanical Engineer
19. 2146 Mining Engineer, Metallurgist and Related Professional
20. 2149 Engineering Professional (Excluding Electrotechnology) Not Elsewhere Classified
21. 2151 Electrical Engineer
22. 2152 Electronic Engineer
23. 2153 Telecommunications Engineers
24. 2166 Graphic and Multimedia Designer
25. 2182 Manufacturing Professional
26. 2212 Specialist Medical Practitioners
27. 2263 Environmental and Occupational Health and Hygiene Professional
28. 2311 University and Higher Education Professional Teacher
29. 2411 Accountant
30. 2412 Financial and Investment Adviser
31. 2413 Financial Analyst
32. 2431 Advertising and Marketing Professional
33. 2434 Communications Technology (ICT) Sales Professional
34. 2511 Systems Analyst
35. 2512 Software Developer
36. 2514 Applications Programmer
37. 2519 Software and Applications Developer and Analyst Not Elsewhere Classified
38. 2521 Database Designer and Administrator
39. 2522 Systems Administrator
40. 2523 Computer Network Professional
41. 2529 Database and Network Professional Not Elsewhere Classified
42. 3112 Civil Engineering Technician
43. 3113 Electrical Engineering Technician
44. 3115 Mechanical Engineering Technician
45. 3119 Physical and Engineering Science Technician Not Elsewhere Classified
46. 3122 Manufacturing Supervisor
47. 3123 Construction Supervisor
48. 3129 Others Supervisor Not Elsewhere Classified
49. 3322 Commercial Sales Agent
50. 3323 Buyer
51. 7211 Metal Moulder and Coremaker
52. 7222 Toolmakers and Related Workers
53. 7233 Agricultural and Industrial Machinery Mechanic and Repairer
54. 7412 Electrical Mechanic and Fitter
55. 8182 Steam Engine and Boiler Operator
56. 8189 Stationary Plant and Machine Operator Not Elsewhere Classified
57. 8332 Heavy Truck and Lorry Driver
58. 8341 Mobile Farm and Forestry Plant Operator

What is a critical occupation?

As documented in previous technical reports, occupations are considered critical if they are skilled, sought-after, and strategic. The Critical Occupations List (COL) is primarily concerned with identifying shortages in occupations that are associated with Malaysia’s growing knowledge-based economy.

To accomplish this, the COL is focused on identifying occupations that are skilled. The COL is also interested in determining whether there are mismatches between employers’ demand for certain occupations and the supply of the skills associated with these occupations.

As a result, the COL seeks to identify shortages in occupations that are sought-after by employers. Finally, the COL is designed to be a tool to help policymakers make decisions. Thus, even after identifying shortages in skilled occupations an occupation is only considered to be critical if filling that occupational shortage is consistent with Malaysia’s strategic economic development objectives.

Is the occupation skilled?

Occupations are determined to be skilled based on the Malaysian Standard Classification of Occupations list. The COL uses the Malaysian Standard Classification of Occupations (MASCO) 2013 list to determine the skill level of occupations. This list is maintained and regularly
updated by the Ministry of Human Resources (MOHR). Eight of the 9 MASCO occupational groupings are semi- or high-skilled. These are:

• MASCO 1: Managers
• MASCO 2: Professionals
• MASCO 3: Technical and Associate Professionals
• MASCO 4: Clerical Support Workers
• MASCO 5: Service and Sales Workers
• MASCO 6: Skilled Agricultural, Forestry, Livestock and Fisheries Workers
• MASCO 7: Craft and Related Trades Workers; and
• MASCO 8: Plant and Machine Operators and Assemblers.

Elementary Occupations (MASCO 9) are considered to be low- or unskilled. Whereas all of the
other occupational groupings require at least secondary education1, the Elementary Occupations grouping requires only primary education. These occupations are not eligible for inclusion on the COL.

Is the occupation sought-after?

Sought-after occupations are identified using quantitative indicators of shortage and qualitative evidence from employers and other stakeholders. Sought-after means that
demand for an occupation or job title exceeds the supply of appropriately qualified workers despite efforts on the part of employers to satisfy their demand and for reasons not easily
addressed through changes in employer hiring practices.

The top-down approach defines specific indicators of occupations that are sought-after and sets thresholds based on national labour market statistics. The bottom-up approach uses nominations of hard-to-fill occupations in a Call for Evidence Survey (CfE) of employers as the most important indicator of occupations that are sought-after. In order to assess the validity and potential drivers of occupations that are sought-after, additional information is sought in the CfE and in consultations.

This additional information includes job requirements, skills needed, desired level of experience, minimum qualification required, reasons why employers believe the occupation is hard-to-fill, and employer responses to hiring difficulties.

Is the occupation strategic?

Strategic means that an occupation is central to Malaysia’s economic development objectives. A strategic occupation is one that is closely linked to Malaysia’s economic growth
and the development of its knowledge-based economy. As a result of the strategic criteria, government programs can use the COL to set priorities and allocate resources. This criterion is more flexible than the skilled and sought-after criteria and draws on evidence from both the top-down and bottom-up approaches. It is designed to ensure that the COL meets the needs of policymakers and Malaysia as a whole.

Because the COL is designed to be used by a broad range of agencies and programmes, the strategic criteria is not intended to exclude a large number of occupations for which the skilled and sought-after criteria are strong. Rather,
the aim is to ensure that the COL is able to address emerging economic and social needs when the skilled and sought-after tests are passed

The Skills and Preferences Gap between Companies and the Labour Market

Unsurprisingly, the rise of the Fourth Industrial Revolution (IR4.0) is also changing the type of skills sought after by industry to help companies stay competitive. However, associations have cited the lack of required technical skills among graduates and job applicants, associated with
the lag in the curricula of courses offered by local Higher Learning Institutions (HLIs) behind current industry practices and a lack of soft skills necessary for employees to succeed in these critical roles.

Universities have been unable to keep up with the constantly changing skillset required by industry, either due to the slow, fixed-period revision and accreditation process for university courses, the lack of funding for vocational education institutes to provide advanced machinery adopted by industry, or the lack of consultation and integrated efforts between industry and HLIs in the process of producing employable and industry-ready graduates.

The geographic rigidity of the local labour force has also made recruitment difficult for industries that require workers to engage in frequent travelling and for firms to expand their businesses to different regions within the country and internationally. According to the associations and companies, local employees have been less willing to travel for work, preferring geographic stability and the ability to stay close to family.

Lastly, industry is also unable to attract a new generation of workers into jobs that have a reputation of being lowskilled, low-paying and 3D (Dangerous, Dirty and Difficult), especially when once again, entrepreneurship and self-employment are now more easily accessible. Companies then have to cope with the reduced willingness to work in these jobs through a greater reliance on foreign labour.

What is the COL used for?

The COL will be used to refine human-capital related public policies, such as: upskilling, scholarship, higher education, immigration, and technical vocational education and training (TVET). It is currently being used for several policies that are related to human capital:
TalentCorp’s Returning Expert Programme (REP) and Residence Pass-Talent (RP-T) incorporates the COL as one of the key approval criteria for applications.

The Ministry of Higher Education (MOHE) uses the COL as a reference to review new programmes as proposed by public institutions of higher education.

Why doesn’t the COL provide specific numbers, e.g. how many engineers will we need in the next five years?

Based on the experiences of advanced economies, attempts to predict the exact demand of occupations are likely to be inaccurate, because they are based on many assumptions. The COL aims to suggest which occupations will have a labour shortage, and not on the extent of the shortage.

Example: while many oil and gas firms forecast a large need for skilled workers in the upstream sector, the unexpected fall in oil prices and uncertain timing of its persistence have led companies to freeze hiring; some have even retrenched workers. Forecasts such as “we need 30,000 engineers by 2020” might be inaccurate and result in an oversupply of labour (leading to problems such as graduate unemployment).

Countries such as the UK, Australia, and Canada have also adopted a similar approach.

How do companies benefit from the COL?

Companies can give input to the COL via the Call for Evidence (CFE) survey, to share their key talent needs and hiring challenges. Based on the COL, TalentCorp can drive for meaningful interventions that are reflective of industry’s talent needs.

The COL can be used as a reference to guide relevant programmes. For example, TalentCorp’s REP and RP-T gives more consideration for applicants working in a critical occupation. This benefits companies who hire talents through TalentCorp’s initiatives.

Does the COL take into account issues of the global economy, current government interventions, and other issues like government mega projects (e.g.: Malaysia High Speed Rail, East Coast Rail)?

Yes. The COL draws data from national surveys and companies feedback. Any issue that influences employers’ hiring policies will therefore also be reflected in the COL results. Such issues include (but not limited to) the general state of economy in the industry, government regulations, and national development plans.

Why doesn’t the COL rank occupations by how critical they are (in terms of the acuteness of shortages/criticalness)?

The COL suggests which occupations appears to be in demand and are strategic to the Malaysian economy. While the COL indicates which occupations received more evidence, it does not compare how critical each occupation in relation to one another. The decision on the criticalness of each occupation is subjective to the users of the COL.

How does the COL benefit talent?

Directly: Companies, industry associations/regulators, policy makers and the general public can use the COL as a reference to understand the trends of different occupations in Malaysia.

Indirectly: The COL is used as a reference to ensure that human capital related initiatives/policies will better target industry talent needs. For example, new courses introduced at universities will go through a committee panel that uses the COL to assess whether the courses will lead to positive employment outcomes for university graduates.

Does the COL also cover future jobs in demand?

The COL provides information on the skills that employers need in future.

In the CFE survey, employers are asked whether they plan to introduce new production techniques in future, and if they expect to expand their workforce in specific occupations. Bottom-up evidence on future labour shortage is used together with top-down evidence to decide if an occupation should be included in the COL, and also to identify emerging trends in future skills needed in the economy. However, the COL does not differentiate between short-term need and long-term need for occupations – this is why the COL is updated every year, to provide constant updates.

If an occupation appears in the COL for several years, it suggests a long-term demand for this occupation. Longer-term interventions could be necessary (e.g. education and training policies). Conversely, if an occupation appears in the COL for the first time, shorter-term measures could be more appropriate (e.g. migration policies, short-term training) in addressing its shortage

A quick guide to the Critical Occupations List (COL) by TalentCorp & the Institute of Labour Market Information and Analysis (ILMIA)

What is the Critical Occupations List?

The Critical Occupations List (COL) identifies the jobs most in demand in key sectors of the economy, and for which industries may be facing shortages or difficulties in hiring.

It is developed by the Critical Skills Monitoring Committee (CSC), which is jointly led by TalentCorp and the Institute of Labour Market Information and Analysis (ILMIA). The input of the CSC would be used as part of the proposed Human Capital Council to be chaired by the Prime Minister to coordinate the Government’s human capital policies.

How was the Critical Occupations List (COL developed?

The COL combines a top-down and bottom-up approach, a framework developed together with the World Bank and is in line with what is practised in the United Kingdom. It is developed in three stages:

1. Top-down analysis: National level statistics are rigorously analysed to detect occupations that are sought after. In particular, the Department of Statistics’ Labour Force Survey 2011-2014 is analysed to identify occupations exhibiting high employment and wage growth, an indicator of high demand.
2. Bottom-up consultation: Results from the top-down analysis are then validated by the industry via a combination of surveys and consultations, in addition to engagements with sector regulators (eg MDEC for ICT and MCMC for telecommunications).
3. Public consultation: The COL is released publicly and is open for feedback, providing the opportunity for government agencies, employers and individuals to provide further input or evidence on sought-after occupations.

How can we benefit from the Critical Occupations List (COL?

Understanding the specific skills that are in demand by key industries can help:

1. The government coordinate policies and prioritise publicly financed initiatives, such as scholarships, reskilling programmes or inward immigration, to enhance the supply of sought-after skills in Malaysia.
2. The industry to go beyond business as usual in its recruiting strategy, and to explore alternative measures such as targeting Malaysians abroad and investing further in developing sought-after skills, whether through in-house training or industry-academia collaboration.
3. The general public such as parents and young talents, in selecting their course of study and career paths based on areas in demand.

When was the Critical Occupations List (COL published?

The pilot Critical Occupations List 2015/2016 was published in December 2015 based on labour data spanning 2011–2014. The pilot document identified 42 occupations from six key economic sectors as critical.

The list will continually be refined and updated on an annual basis to ensure that it remains relevant and provides an accurate and timely picture of skills imbalances in Malaysia.