Business performance, Talent shortage could threaten business growth in Malaysia gross revenue to improve in 2Q18
KUALA LUMPUR: Business performance in the second quarter of 2018 ( 2Q18) is expected to improve with confidence indicator at +7.8 per cent, mainly due to growth in industry (9.9 per cent), wholesale and retail trade (7.4 per cent), and services (8.6 per cent) sectors.
Gross revenue is also expected to continue to rise with a net balance of 22.6 per cent, with 34.0 per cent of establishments forecasting an increase in revenue, while 11.4 per cent anticipating a decrease, said the Department of Statistics’s 2018 Second Quarter Business Tendency Statistics, released yesterday.
In terms of the number of employees, 8.7 per cent of establishments predicting an increase while 7.9 per cent expecting a decrease in 2Q18, leading to a net balance increase of 0.8 per cent.
Meanwh i l e, bu s i n e s s performance in 1Q18 was currently lower with an overall net balance contracted 1.2 per cent, contributed by decline in industry (-3.1 per cent), construction (-31.1 per cent), and wholesale and retail trade (-1.5 per cent).
“The gross revenue for 1Q18 increased with a net balance of 2.6 per cent, whereby 26.0 per cent of establishments reporting an increase, while 23.4 per cent recording a decline,” said the department.
In terms of the number of employees, 11.8 per cent of establishments indicated an increase in employment, while 12.9 per cent reported a decrease.
Overall, a net balance decrease of 1.1 per cent for the number of employees was recorded in 1Q18 compared with 10.8 per cent in the fourth quarter of 2017, it added.
“Expectations of the business performance continue to be positive with a net balance of +4.4 per cent in April to September 2018,” said the department.
Wholesale and retail trade and services sectors are expected to increase with a net balance of 9.5 per cent and 15.3 per cent, respectively.
In contrary, industry (agriculture, mining, manufacturing, and electricity and water) and construction sectors recorded a decrease with a net balance of 0.3 per cent and 26.6 per cent, respectively. — Bernama KUCHING: Already a major issue, Malaysia will face a severe talent shortage of highly skilled and midskilled 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.
The gross revenue for 1Q18 increased with a net balance of 2.6 per cent, whereby 26.0 per cent of establishments reporting an increase, while 23.4 per cent recording a decline. Department of Statistics’s 2018 Second Quarter Business Tendency Statistics
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 andeconomiescouldfindthemselves 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.