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Meeting the Talent Needs of

Malaysias Economic Transformation


7th ADBI-OECD-ILO Roundtable on Labour Migration In Asia
January 2017

The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development
Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any
consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.
Objective of Presentation:

To share developments in Malaysias


talent migration practice & policies
in the context of economic development &
balancing security considerations

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New Economic Model (NEM)

Launched by Malaysia in March 2010

ETP targeted to generate >3 million jobs


> 60% jobs medium to high income salary
Translates to high requirement for skills.
3
We want to avoid a vicious cycle of fewer
talent and a weakened economy

Talent leakages

Fewer Insufficient
jobs talent

Constrained
growth and
investments

4
and instead catalyse change to spur a
virtuous cycle of investments, jobs and talent.

Malaysia as
talent hub

High income jobs, Enhanced


careers & quality talent
of life availability

Increased
growth and
investments

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Problem Statement on Foreign Talent Management

Pursuant to ETP, engagement with key investors & expatriates in 2010


raised key areas of concern with policy & practice on foreign talent

Uncertainty Flexibility
Optimal management of foreign Management of foreign talent could
talent hampered by uncertainty: be enhanced by
Process for different Facilitating spouse to work
requirements
Longer tenure based on need
Timeline for application process
Not limiting to specific employer
Criteria for approval / renewal where talent with critical skills
Quantity allowed by employer Pro-active top talent engagement

Inputs from engagement were used to initiate enhancement to


expatriate management, in particular, the introduction of:-
Expatriate Services Division / MyXpats Centre, and
Residence Pass - Talent

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Expatriate Services Division(ESD)
Creating a single
point of contact for
all expatriate related
EASE OF
passes and permits APPLICATION

Employment
Pass
EMPLOYMENT
PASS
DIVISION Residence Social
Pass-Talent Visit Pass
Dependent
Pass
PREVIOUS
Employment Professional
SET-UP IN Pass EXPATRIATE Visit Pass
IMMIGRATION Visit Pass SERVICES
DEPARTMENT (Temporary
Employment) DIVISION
VISA, PASS for Maid
& PERMIT
DIVISION FOREIGN Residence Dependent
WORKER Pass-Talent Pass
DIVISION
Social Professional Visit Pass
Visit Pass Visit Pass (Temporary
Employment)
TRANSFORMATION for Maid

PRODUCT CENTRIC CUSTOMER CENTRIC

ESD website https://esd.imi.gov.my/esd/portal/en/


M a l ays i a E x p at r i ate Ta l e nt S e r v i c e C e nt re

Overseen by Joint initiative


the Ministry between
of Home TalentCorp and
Affairs the
Immigration
Process and issue Department of
Employment Passes Malaysia
for expatriates,
including Dependent Operational in
1 July 2015 @
Passes and Long Term Surian Tower,
Social Visit Passes. Online Mutiara
Damansara
application at
esd.imi.gov.my

Expatriate Services Division


(ESD)

Company registration Expatriate application


(14 working days) (5 working days)

Evaluates employers for compliance, Evaluates expatriates for


risks and needs suitability of jobs
>80%
MORE THAN MORE THAN
Met CLIENT
11,000 100,000 CHARTER
COMPANIES EMPLOYMENT PASS & PROFESSIONAL PROCESSING EMPLOYMENT PASS
REGISTERED VISIT PASS WITHIN 5 WORKING DAYS IN 2016
WITH ESD APPLICATIONS SUBMITTED THROUGH ESD
SYSTEM

TOP 5 INDUSTRIES TOP 5 NATIONALITY

22% CONSTRUCTION CHINA 24%

21% MANUFACTURING INDIA 14%


13% BUSINESS SERVICES JAPAN 9%

11% OIL, GAS & ENERGY PHILIPPINES 6%


9% EDUCATION INDONESIA 6%

Apr 2014 Dec 2016


R E S I D E N C E PA S S - TA L E N T

WHO IS ELIGIBLE?
Have worked in Malaysia for 3 years

RETENTION
Holds a valid Employment Pass at the
time of application
RESIDENCE
PASS-TALENT
Holds a Degree or Professional
certificate from a professional institute

Possess minimum 5 years of total


work experience

MORE THAN 10 year


4,200 Pass issued to Earns a basic monthly income of
APPROVED Applicant & Spouse RM15k per month (effective 1st Feb 2017)
SINCE APRIL 2011 Personal to Holder
(not tied to
Employer) Have filed income tax in Malaysia and
paid taxes for a minimum of 2 years

10
RESIDENCE PASS-TALENT

2016
INCLUDING

MORE THAN
267
FAST TRACK

4200 1
1
BUSINESS
SERVICES
1
1

INDIA
1200 APPROVED
RP-T

SECTORS
2 2
UNITED
APPROVED TOP 5
2
OIL, GAS &
KINGDOM

NATIONALITY
ENERGY
SINCE LIBERALIZATION OF RP-T
3
2011
3

TOP 5
3
COMMUNICATION, CONTENT FOR EXPATRIATES
JAPAN
& INFRASTRUCTURE ABROAD
4 4
4
AUSTRALIA
EDUCATION
>90% ENHANCEMENT &
POSSESS MORE THAN 10
YEARS OF GLOBAL
5
5
FINANCIAL
5 UNITED >70% REDEPLOYMENT OF RP-T
STATES ARE C-SUITES (TOP MANAGEMENT) & TECHNICAL EXPERTS
WORKING EXPERIENCE SERVICES
EARNING 20K AND ABOVE

>85%
HOLDS BACHELORS
RP-T TOP PROFILES
DEGREE AND ABOVE

>90%
ARE C-SUITES (TOP
MANAGEMENT) & ALOIS
MORTEN LUNDAL CHRISTOPER SAJITH TOSHIHIKO ANNA MARIA DATO' PETER JOSEPH EMMANUEL THIERRY
TECHNICAL EXPERTS IN HOFBAUER SIVANANDAN MATSUNAGA BRAUN CHRISTIAN NIVET LEGRAND
CEO JOHN KELLY VIGLIONE
KEY ECONOMIC AREAS MD AND
GM COUNTRY MD & CEO PRESIDENT HALM SENIOR VP CEO COUNTRY CEO
HEAD HEAD CFO
Areas for further improvement

Based on World Bank assessment*, initiatives such as Residence Pass


Talent were found to have been effective in facilitating retention of
genuine talented foreign talent. Nevertheless, World Bank* proposed
areas for further improvement in foreign talent management:

Recommendations Work in Progress


Scale up evidence-based system Development of Critical Skills Gap
to identify skills shortages list, mirroring UK methodology
Develop risk based regulations & 2017 plans to introduce Employer
shift onus to employers Mandatory Commitment & Tiering
Refinement of approval criteria Refinements ongoing on approval
based on economic needs point system & salary tiering
Restructure levy system Subject to stakeholder engagement

Significant progress has been achieved but the journey


continues..
* Note: World Bank studies related to Malaysias foreign talent management:
Improving effectiveness of TalentCorps Initiatives (June 2015), and 12
Malaysia Economic Monitor (Dec 2015) Immigrant Labor
Thank You
Terima Kasih

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