Thursday, January 21

Talent shortage could threaten business growth in Malaysia

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KUCHING: Already a major issue, Malaysia will face a severe talent shortage of highly skilled and mid-skilled workers in 2030 if the current situation is not addressed, Korn Ferry reveals in a study.

Korn Ferry estimated that Malaysia’s talent deficit was expected to reach 94,000 skilled workers, resulting in an unrealised output of RM24.4 billion (US$6.1 billion).

Korn Ferry’s Global Talent Crunch study revealed the shortage will predominantly impact the Financial and Business services; and Technology, Media and Telecommunications sectors, especially at the highly skilled level.

Talent deficit for the Financial and Business services sector is forecasted at 173,000 highly skilled workers with an unrealised output of close to RM4 billion (US$1 billion). The Technology, Media and Telecommunications (TMT) sector meanwhile will require 70,813 skilled workers to circumvent an unrealised output of close to RM4 billion (US$1 billion).

One of the main reasons for the country’s severe talent shortage is the greater mobility of local talent. In 2017, Malaysia dropped seven places to rank 28th amongst 63 countries for the ability to retain and attract highly skilled local and foreign workers.

Recent news reports state that 71 per cent of Malaysians, given the opportunity, are willing to relocate overseas to countries such as Singapore, Hong Kong, Australia and the United Kingdom, as they deem these countries more attractive in terms of salary and career development.

“Companies in Malaysia must act now to future-proof their business. The right talent is the greatest competitive advantage there is for an organisation, and that talent is getting scarcer every day.

“Our study reveals that there already isn’t enough skilled talent to go around, and by 2030, organisations and economies could find themselves in the grip of a talent crisis.

“In the face of such acute talent shortages, workforce planning and a comprehensive understanding of the talent pipeline are critical,” Korn Ferry Hay Group Malaysia senior client partner Shahrizal Mohd.