PN. HJH. NORASHIKIN BT. DATUK HAJI ISMAIL ECONOMIC PLANNING UNIT PRIME MINISTER S DEPARTMENT OF MALAYSIA

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1 PRIME MINISTER'S OFFICE PN. HJH. NORASHIKIN BT. DATUK HAJI ISMAIL ECONOMIC PLANNING UNIT PRIME MINISTER S DEPARTMENT OF MALAYSIA Follow us 1

2 Malaysian LabourForce Background

3 % in Working Age Population(15-64) m 21.7 m 68% in Labour Force Employment by Industry 62% Services 14.7 m 7.0 m 63% 39 yo & below 37% 17% Manufacturing 11% Agriculture 9% Construction 1% Mining & Quarrying 31.7m Population LABOUR MARKET 42% House work 15m year % 1.9 m target 14.7m Labour Force 54.3% Labour Force Participation Rate 14.2m Employed 62% 38% 27% 60% 13% High skilled Semi skilled Low skilled 54% 36% 10% Graduate from Higher Education 3.4% Unemployed Employment percentage by gender TVET from Higher Education 500k Avg. school leavers each years 84% Malaysian School 54.2% Youth unemployment Employment percentage by Nationality 16% Non-Malaysian RM1,703 Median Wage Source: EPU analysis based DOSM population and LFS data 3

4 High Youth Unemployment Outside labour force 3.5 Age Cohort of Youth (in millions) Population Inside labour market 2.6 Total: 6.1 mil. [ ] Global Youth Unemployment (ILO 2016) World ~13.1% Developed Economies ~ 14.5% South East Asia & Pacific ~13.0% % MALE 73% % % FEMALE Unemployment Rate % Unemployment by Age Group (%) Triple than national unemployment rate % of unemployed youth: Diploma & Degree holders Youth Total Youth (age 15-24) constitute more than half of unemployment 11% unemployment rate 4

5 Public University s Unemployed Rate ( 000) 100 (%) Graduates Produced Unemployed Unemployed Rate Expon. (Graduates Produced) Expon. (Unemployed) Source: Graduate Tracer Study

6 Unemployed Graduates Rate According to States Kelantan Terengganu Sabah Pahang Sarawak Perlis Kedah WP Labuan Perak Melaka Negeri Sembilan Johor Pulau Pinang WP Kuala Lumpur Selangor WP Putrajaya Urban states have lower unemployment rates compared to rural states Source: Graduate Tracer Study 2015 < RM1,000 RM1,001 - RM2,000 RM2,001 - RM3,000 RM3,001 - RM5,000 > RM5,000 Unemployed Graduates According to Avg. Family Monthly Income B40 Community M40 Community (%) Household Income Category (per month) B40 : < RM3,855 M40 : RM3,860 to RM8,319 T40 : > RM8,320 6

7 ! $ # " % ( %! $ # % & " Single Mother Retirees Prisoners / Ex-prisoners Former Drug Addict Indigenous People Homeless Latent Workforce Others Talent bridging & outreach Graduates Structured Internship Industry Academia Collaboration Financial Sector B40 Community Drop-Out Underprivileged Handicap Malaysian Government Initiatives on Human Capital Building TVET Upskilling Provider Retrenchment National Plan ' & Women Foreign Worker Expatriate Micro Credit Entrepreneurship SMEs Training Centre Facilitating SMEs Young Entrepreneur Side Income for Housewife Childcare facilities Career Comeback Flexible Work Arrangement Ease of Application Retention High Potential Digital (Crowdsourcing) 7

8 SL1M Programme

9 Objective Improving self-confidence, personal development and boosting the marketability of graduates mainly from poor families or rural areas in securing a job One of the Malaysian government initiatives in addressing the issue of unemployed graduates Collaboration among GLCsand private companies using the concept of Corporate Social Responsibility (CSR) Target groups Degree holders and above unemployed citizens who are from low income families or live in remote areas working but not equivalent with the qualifications obtained Established since June 1st, 2011, under the supervision of Economic Planning Unit, Prime Minister s Department 9

10 SL1M TRAINING STRCUTURE Classroom Training Max. 2 months 5 required modules: Communication Skills Value-Driven Professional Creative & Analytical Thinking Grooming & Etiquette (tailored to business need of the participating company) Organizational Adaptability On-The-Job Training Max. 12 months *Durations are depending on the needs of each company Participants will be trained to work as a permanent employees of the company and given a mentorto guide them As a result, participants will be exposed to real work experience in organizations both large and also small and medium size industries Minimum RM1,500 monthly allowances will be paid directly to each SL1M participants by the company throughout the training 10

11 INCENTIVES TO COMPANIES Each expenditures incurred to train every SL1M participants, companies are eligible to claim either one of these incentives: Double Tax Deduction (June December 2020) Double tax deduction on expenses incurred by the company to train (training cost + monthly allowances) unemployed graduates to enhance their marketability under the scheme HRDF-SL1M SCHEME (Starting Apr 2014) Contributions under the HRDF levy will be used to reduce the expenses of the company towards training the SL1M participants 11

12 Employability Interventions Unemployed graduates Other government initiatives Participating GLCs and private companies Different approach by each company to cater different group of unemployed graduates Career Accelerator Re-skilling 2 nd Chance Programme Skill specialization / up-skilling CSR KPI for the GLCs Government contract beneficiaries Job Market 12

13 Training (direct assist) Outreach (indirect assist) Management Training Booster Open Interview Catalyst Classroom training with minimum 5 modules On the job training Requirement Open to all Degree graduates Duration 6 12 months Rigorous classroom training with minimum 5 modules Send to a career fair Requirement Degree graduates who require minimum intervention Duration 3 days 2 months Open to all education level Outreach programmes throughout the country by zoning Requirement Open to all job seekers Duration 2-5 days Career/Motivation Talk Requirement University students in final semester 13

14 COMPANIES PARTICIPATED IN THE PROGRAMME BY SECTOR Agriculture and Farming 5% Utilities 3% Finance and Investment 16% Information and Communication 4% Oil and gas 6% Construction and Housing 9% Services 40% Manufacturing 6% Transportation and Logistics 11% 14

15 Year KPIs Directly Number of Graduates Assisted Indirectly ,000 4, ,000 4,622 14, ,000 4,450 13, ,000 4,185 6, ,000 10,000 9, ,000 15,000 18, ,000 15,900 18,494 (up to Apr 17) 48,454 73,904 Total 139,398 25,000 20,000 15,000 10,000 5,000 - Number of Graduates Assisted from 2011 to Oct ,915 20,000 18,494 15,000 15,000 15,900 14,072 13,322 10,000 10,000 9,500 6,741 4,000 4,197 4,622 4,000 4,000 4,450 4,000 4, KPIS Directly Assisted Indirectly Assisted Expon. (Directly Assisted) 15

16 New Initiatives

17 UTC Kangar Alor Setar Kota Bahru Urban Transformation Centre (UTC)is government effort and initiative providing the urban community with key government and private sector services under one roof It is part of the National Blue Ocean Strategy (NBOS) improve service quality through strategic collaboration between Government agencies and the private sector Ipoh Kuala Terengganu Kota Kinabalu Kuantan Pudu Kuching Johor Bahru 12 centers throughout nation (in every states) 17

18 Bangunan UTC Kedah Jalan Kolam Air, Bandar Alor Setar, 05200, Alor Setar, Kedah Bangunan UTC Perak Jalan Dato Onn Jaafar 30300, Ipoh, Perak Bangunan UTC Kelantan Jalan Hamzah 75300, Kota Bharu, Kelantan Bangunan UTC Pahang Jalan Stadium Kuantan, Pahang Bangunan UTC Pudu Sentral 55100, Wilayah Persekutuan, KL Bangunan UTC Melaka JalanHang Tuah, Wilayah Persekutuan, 75300, Melaka Bangunan UTC Johor Kotaraya, Jalan Trus, Johor Bahru, Johor Bangunan UTC Sabah JalanBelia, Off JalanTAR 88000, Kota Kinabalu, Sabah Bangunan UTC Sarawak Jalan Padungan 93100, Kuching, Sarawak 18

19 SL1M in Government Procurement Every beneficiaries from Government contract above threshold are compulsory to allocate 1% from their contract value to train SL1M trainee 1 = 1% 18,000 Contract Value Threshold: Construction Infrastructure Maintenance Minimum monthly allowances for SL1M trainee (RM1,500) 12 months RM10k RM4k RM10k RM5k RM10k IT & Communication Pharmaceutical Health Support Maintenance Consultancy Security Service Strategic Defense RM10k RM10k RM10k RM10k RM10k Others 19

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