ICT Job Market Outlook in Malaysia 2016 by PIKOM

Average Monthly Salary for Malaysians in 2016 According to PIKOM

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The average monthly salary of an ICT professional in Malaysia grew from RM7,706 in 2014 to RM8,114 in 2015,  an increase of 5.3%. This year, the projected average monthly salary is RM8,496, a 4.7% increase over 2015. Despite challenging economic factors, Malaysia’s 2016 ICT job market remains positive albeit with slower than expected growth and concerns about the outflow of talent, according to national ICT industry association PIKOM’s latest research.

During the recent unveiling of the ICT Job Market Outlook in Malaysia 2016, PIKOM chairman Chin Chee Seong said the local ICT (information and communications technologies) industry has shown resilience in the face of challenges that started in 2014. These included the slowdown of the economy, the drop in the prices of crude oil and commodities, the depreciation of the Ringgit against major currencies as well the implementation of the Goods and Services Tax (GST), said Chin.

He said the total value of ICT in Malaysia for 2015 was estimated to be RM155.2 (US$38.51) billion, based on the average annual growth rate (AAGR) of 8 percent for the period 2010-2015. Chin said that ICT industry’s share of the national economy has expanded from 16.5 percent in 2010 to 17.6 percent in 2015 while the ICT industry’s main driver has been the ICT Services (ICTS) subsector – its contribution to GDP (gross domestic product) increased from 3.3 percent in 2000 to 6.6 percent in 2015 and may reach 7 percent by end of 2016.

“It has been a challenging 2015 for the industry,” he added. “But we have achieved positive growth that has been particularly driven by the expansion in the ICT Services subsector.”

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Average Monthly Salary for Computing Professionals in Malaysia

Average Monthly Salary of ICT Professionals in Malaysia from 2009 to 2016

Average Monthly Salary of ICT Professionals in Malaysia from 2009 to 2016

In 2015, an IT Project Manager in Malaysia earned more than their counterparts in the Philippines, Indonesia, Vietnam and India but much less than the ones in United States, United Arab Emirates and Hong Kong.

These are some of the many interesting findings in the National ICT Association of Malaysia (PIKOM)’s ICT JOB MARKET OUTLOOK IN MALAYSIA 2016 report.The report was done in collaboration with Jobstreet.com, a leading online job board presently covering the employment markets in Malaysia, Singapore, Philippines, Indonesia and Vietnam.

The report has been an indispensable guide to C-level executives, human resource practitioners, job seekers, undergraduates and many others, for more than eight years. It is aimed at helping decision makers in organisations, to understand and plan their talent requirements and budgets as well as to give job hunters a realistic view on the market rate for certain job categories, when they are asked for their salary expectations.

Launched today, the latest report indicated that despite the number of challenging factors that have hit

Being in Sabah made it difficult for me to survey the universities in Peninsula. I found EduSpiral online and they provided detailed information & helped me with my application. They even took me around the university for a tour when I went to visit. Xavier Phang, Engineering at Asia Pacific University

Being in Sabah made it difficult for me to survey the universities in Peninsula. I found EduSpiral online and they provided detailed information & helped me with my application. They even took me around the university for a tour when I went to visit.
Xavier Phang, Engineering at Asia Pacific University

our country since 2014 such as the slowdown of the economy, the drop in the prices of crude oil and commodities, the depreciation of the Ringgit against major currencies and the implementation of the Goods and Services Tax (GST), the ICT industry in Malaysia showed resilience and continued its growth path.The total ICT value in Malaysia for 2015 is estimated to be RM155.2 billion, based on the Average Annual Growth Rate (AAGR) of 8% for the period 2010-2015.

The share of the ICT industry to the economy expanded from 16.5% in 2010 to 17.6% in 2015.The main driver of the ICT industry growth is the ICT Services subsector whose share to the GDP rose from 3.3% in 2000 to 6.6% in 2015 and is projected to reach 7 % by end of 2016.“It has been a challenging 2015 for the industry. But we have achieved positive growth that has been particularly driven by and thanks to, the expansion in the ICT Services subsector, “said PIKOM Chairman Chin Chee Seong.

While ICT Manufacturing subsector has been slowing, the ICT Services subsector has been experiencing positive growth in the last two decades, he added.“Consistent with industry growth, salaries also rose although at a slower growth rate,” said Chin, at a press conference today held at PIKOM’s premises in Damansara Perdana.

Job Market Trends in Malaysia Across the Sectors

Generally all ICT job categories, namely the fresh graduates, junior executives, senior executives, middle

AVERAGE MONTHLY SALARY OF ICT PROFESSIONALS BY JOB CATEGORY: 2009-2016

AVERAGE MONTHLY SALARY OF ICT PROFESSIONALS BY JOB CATEGORY: 2009-2016

level managers and senior managers registered a positive salary increase in 2015 albeit with a lower-than-expected growth.

In the table above, the construction / building /engineering industries posted the highest AAGR of the average monthly salary of ICT professionals for the 2009 to 2015 period, at 8.8%, followed by education (8.6%); automotive/heavy industry/machinery (8.5%) and electrical and electronics (8.5%).
Not surprisingly, the oil / gas / petroleum industry which has been experiencing a downturn, registered an AAGR of 4.7% over the same period and a 2.9% year-on-year growth in 2015.

However, oil/gas/petroleum was in the top five paying industries by job category. The other four are banking services; automotive/heavy industry/machinery; agriculture/plantation/aquaculture; and chemical/fertilisers/pesticides.

Top Paying Jobs in Malaysia

“The oil, gas and petroleum sector is still ranked as one of the overall top-paying industries by job categories despite the current industry downturn,” said PIKOM Research Committee Chair Woon Tai Hai.“In fact in the fresh graduates, senior executives and middle manager job categories, the oil, gas and petroleum was in the top five paying industries in 2015 posting an average monthly salary of RM2,984, RM8,291 and RM11,804respectively,” he added.However, PIKOM acknowledged that the 5.3 %salary growth for 2015 for the overall average monthly salary of ICT professionals is the lowest in eight years, said Woon.

“In fact in the fresh graduates, senior executives and middle manager job categories, the oil, gas and petroleum was in the top five paying industries in 2015 posting an average monthly salary of RM2,984 (US$740), RM8,291 (US$2,057) and RM11,804 (US$2,929) respectively,” Woon said.

The study found that construction / building /engineering industries posted the highest AAGR of the average monthly salary of ICT professionals for the 2009 to 2015 period, at 8.8 percent, followed by education (8.6 percent); automotive/heavy industry/machinery (8.5 percent) and electrical and electronics (8.5 percent).

The oil / gas / petroleum industry, which has been experiencing a downturn, registered an AAGR of 4.7 percent during the same period and a 2.9 percent year-on-year growth in 2015. “The oil, gas and petroleum sector is still ranked as one of the overall top-paying industries by job categories despite the current industry downturn,” said PIKOM Research Committee chair Woon Tai Hai.

While the industry expected a downturn, it certainly did not expect an impact of such magnitude, he said.“Perhaps it is also a wake-up call for the industry to realise that although salaries have been growing, future salary growth cannot be taken for granted,” he added.
The Challenge of Retaining Local Talent Remains

As in previous years, the industry continues to face the exodus of talent who seek greener pastures overseas due to better salaries and remunerations. When benchmarked against Asia, United States and Middle East, Malaysia continues to lag behind in terms of salaries, which has been a key factor in the continued prevalence of the brain drain issue.

Average Monthly Salary for Information Communications Technology (ICT) Professionals in Malaysia

I was planning to study in IPTA after STPM but then my parents talked to EduSpiral. They realised the importance of studying at a top award winning university for computing. Mark Siew, Software Engineering at Asia Pacific University

I was planning to study in IPTA after STPM but then my parents talked to EduSpiral. They realised the importance of studying at a top award winning university for computing.
Mark Siew, Software Engineering at Asia Pacific University

The average monthly salary growth for an ICT professional saw an increase of 5.3% in 2015 compared to 10.9% in 2010, according to Pikom’s ICT Job Market Outlook In Malaysia 2016 report The National ICT Association of Malaysia says while the industry expected a downturn, it didn’t expect an impact of such magnitude. “People in the ICT industry won’t get that 10% salary increase again. This is a wake up call for the industry,” says Pikom advisor and research committee chair Woon Tai Hai.

Pikom also acknowledges that the 5.4% growth for 2015 for the overall average monthly salary is the lowest in eight years, he says. ICT professionals shouldn’t get their hopes up for a big raise this year – Woon says the report estimates salary growth to be 4.7% for 2016.

“It has been a challenging 2015 for the industry. But we have achieved positive growth that has been particularly driven by and thanks to, the expansion in the ICT Services subsector,” says Pikom chairman Chin Chee Seong.

The Jobstreet.com Employment Confidence Index found that most employees are not confident of getting a job given that 46% of prospective employers say that their business have been impacted while 54% say they may even consider downsizing. Jobstreet collaborated with Pikom on the ICT Job Market report.

The average salary for an ICT professional in 2015 was RM8,114.

However, oil/gas/petroleum was in the top five paying industries by job category. The other four are banking services; automotive/heavy industry/machinery; agriculture/plantation/aquaculture; and chemical/fertilisers/pesticides.

He confirmed that PIKOM found that the 5.3 percent salary growth for 2015 for the overall average monthly salary of ICT professionals is the lowest in eight years. Woon added that while the industry expected a downturn, “it certainly did not expect an impact of such magnitude. Perhaps it is also a wake-up call for the industry to realise that although salaries have been growing, future salary growth cannot be taken for granted.”

Average monthly ICT salary in Malaysia according to industries

Average monthly ICT salary in Malaysia according to industries

Average monthly ICT salary in Malaysia according to industries

The Purchasing Power Parity Adjusted Criterion benchmarking scale in 2015, which takes into account inflation rates and fluctuations in the foreign exchange, showed that the average monthly salary of an IT Project Manager at entry level in the United Arab Emirates and United States was respectively, 2.18 and 1.5 times more than in Malaysia.

The average monthly salary of an entry level IT Project Manager, in Thailand, Hong Kong andSingapore, was 1.95 times, 1.88 times and 1.38 times, respectively, more than in Malaysia.It is imperative that both the industry and government tackle the issue of talent outflow through ensuring continuous stream of quality fresh graduates entering the work force, promoting R&D and commercialisation and maintaining competitive salary packages, said PIKOM Chairman Chin.

Remuneration moves in Malaysia

Online job platform JobStreet again conducted the study, which found that the average monthly salary of an ICT professional in Malaysia grew from RM7,706 (US$1,912) in 2014 to RM8,114 (US$2013) in 2015, an increase of 5.3 percent. This year, the projected average monthly salary is RM8,496 (2,108), a 4.7 percent increase over 2015.

Chin said that in 2015, an IT Project Manager in Malaysia earned more than their counterparts in the Philippines, Indonesia, Vietnam and India but much less than the ones in United States, United Arab Emirates and Hong Kong.

Though the ICT Manufacturing subsector has been slowing, the ICT Services subsector has been experiencing positive growth in the last two decades, he added.”Consistent with industry growth, salaries also rose although at a slower growth rate.”

Chin said that generally all ICT job categories, such as fresh graduates, junior executives, senior executives, middle level managers and senior managers registered a positive salary increase in 2015 albeit with a lower-than-expected growth.

Talent issues in Malaysia

EduSpiral chatted with me on Facebook & helped me with my application & accommodation. Jian Yi, Business Computing at Asia Pacific University

EduSpiral chatted with me on Facebook & helped me with my application & accommodation.
Jian Yi, Business Computing at Asia Pacific University

Woon also said that as in previous years, the industry continued to “face the exodus of talent who seek greener pastures overseas due to better salaries and remunerations.”

When compared with Asia, United States and Middle East, Malaysia lagged behind in terms of salaries, which has been a key factor in the continued the brain drain issue.

The Purchasing Power Parity Adjusted Criterion benchmarking scale in 2015 showed that the average monthly salary of an IT Project Manager at entry level in the United Arab Emirates and United States was respectively, 2.18 and 1.5 times more than in Malaysia.

The average monthly salary of an entry level IT Project Manager, in Thailand, Hong Kong and Singapore, was 1.95 times, 1.88 times and 1.38 times, respectively, more than in Malaysia.

PIKOM’s chairman Chin said the industry and the government needed to “tackle the issue of talent outflow through ensuring continuous stream of quality fresh graduates entering the work force, promoting R&D and commercialisation and maintaining competitive salary packages.”

About PIKOM, THE NATIONAL ICT ASSOCIATION OF MALAYSIA

It is the association representing the information and communications technology (ICT) industry in Malaysia. Its membership currently stands at over 775 comprising companies involved in a whole spectrum of ICT products and services which commands about 80% of the total ICT trade in Malaysia. PIKOM works to improve the business climate in the interests of all its member companies and to promote industry growth in line with national aspirations. PIKOM’s membership is open to all Malaysian companies who supply ICT products and services in the computing and telecommunications industries. However, non-ICT companies are also welcome to join the Association as associate members.

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