Solar RE & Energy Transmission Wind Storage & Distribu9on BaGery Flywheel Powerplant Nuclear appliances Hydro Fossil Smart Commercial Residen9al Meters Smart Load BIPV Meters Despatch lighting Centre/ Smart EV Meters EMS BIPV Air-cond MachineriesSource : Electric Power Research Institute Industry Figure 2.0: Smart Grid concept: integration ofvarious tools and technologies in the system●● Supervisory Control and Data ●● Distribution Automation (DA) and Acquisition Systems (SCADA) with Substation Automation Systems Energy Management Systems (EMS) and Distribution Management Systems ●● Outage Management Systems (OMS) (DMS) ●● Mobile Crew Management Systems ●● Enterprise Application Integration●● Enterprise IT network covering ●● Analytics(converting data into business substations and field offices with reliable communication systems intelligence) ●● Dynamic Tariff●● Enterprise Resource Planning (ERP)/ ●● Renewable Energy Integration Asset Management Systems ●● Electric Vehicle (EV) Infrastructure●● Geographical Information System – Integration mapping of electrical network assets and consumers on geospatial maps The latest technology embraced by TNB is the Advanced Metering Infrastructure (AMI) which is the●● Advanced Metering Infrastructure (AMI) main focus of this article. AMI is an emerging field, with two-way communication and Meter which in functional terms is part of the electricity Data sector but requires technological components and know-how that originate from the ICT sector. The●● Metering Data Management Systems field is still in an early stage of development with (MDMS) technological standards, business models and●● Electronic Billing Systems and Customer Care Systems 49
INGENIEURconsumer services still in flux with many different ●● Interoperability, scalability andfirms trying to establish their role and niche in technology readiness.Smart Grid business. The definition of AMI asexplained in the Institue of Electrical & Electronic TNB is currently implementing an AMIEngineers (IEEE) Report 2013 is as follows: demonstration project in Melaka and Putrajaya. It is supported through funding from the ‘Akaun a. Automatic reading, processing and Amanah Industri Bekalan Elektrik’ (AAIBE) for a transmission of metering data, 24 months project implementation. The main objective of this project is to develop AMI as pilot b. Possibility of bi-directional data sites in TNB. The scopes of the AMI initiatives are communication in real-time (or with only as follows: a small time lag), ●● Installation of 1,000 smart meters; 200 c. Support of additional services and smart meters in Putrajaya and 800 smart applications, e.g. home automation, meters in Melaka; and remote (dis-) connection of supply or load limitation, and ●● Development of ICT infrastructure and systems integration (back-end system). d. Remote update of meter firmware to enable new services, communication The experience and lessons from this pilot protocols, etc. project will provide useful inputs for decision- making to implement larger roll-outs of smartAMI DEPLOYMENT IN TNB meters. Pilot implementation will provide aIt is observed that many utilities worldwide are test environment for different technologies anddeploying AMI through a pilot poject approach communication platforms. TNB AMI demonstrationbefore gradually moving into large scale project will assess the suitability of differentimplementation. For instance, Electricite Reseau communication technologies i.e. RF mesh, PowerDistribution France (ERDF) in France has piloted Line Carrier (PLC) and General Packet Radio300,000 smart meters under the Linky Project in Service (GPRS). TNB is also leveraging on theParis while Endessa and Iberdrola in Spain have pilot project to understand customer acceptanceinstalled 22,000 and 100,000 smart meters and AMI behaviour by developing a comprehensiverespectively. Meanwhile in USA, Austin Energy customer engagement plan.began with 418,900 smart meters, Central MainePower Co installed 607,000 meters, PG&E fitted As illustrated in Figure 3.0, the AMIonly 5,000 meters and Connecticut Light and architecture consists of three layers:Power chose to deploy 1,500 meters in theirrespective trial projects. 1. Hardware layer - The hardware layer consists of the traditional distribution The rationale behind this move is easy to network plus ‘intelligent’ sensors thatcomprehend since; collect information about the status and operations of the hardware, a. AMI is a costly undertaking, hence a pilot project provides useful data/learning to 2. Communication layer - The communi- validate the business case before large cation layer allows gathering data from scale deployment; and distributed end devices (e.g. metering data) and sending signals to the end b. A pilot project approach minimises the device (two-way communication), and risks and disruptions to the electricity supply industry. Among the risks 3. Software or application layer - The third associated with AMI are: layer is the software or application layer ●● Cyber-security threat; that allows for aggregation and analysis ●● Customer resistance due to of the collected data. A meter data perceptions of increasing bills, management system (MDMS) is one health issues associated with radio example for a software solution. frequency (RF) radiation; ●● Personal data privacy issues; and The three layers need to be integrated into an end-to-end solution that allows the system to work seamlessly. Neither the communication nor560 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
AMI Scope in TNB (Fig 3.0) Figure 3.0: Advanced Metering Infrastructure (AMI) in TNBthe software layer was needed in the past. MDMS POWERING THE NATIONdata will be synchronized with data in TNB’s otherrelevant information systems. Customer data Figure 3.1.captured in the customer database, e-CIBS, must The main objectives of the smart meterbe reflected in the billing system, the MDMS, andthe AMI head-end systems to ensure that new deployment in TNB are improving energy andcustomer information is correctly associated with network efficiency, improving operational efficiencythe proper meter data in a timely manner. TNB and empowering customers. To maximize potentialdeploys a service-oriented architecture (SOA) benefits of the technology, TNB has set up ninewhich enables it to build the code once and functional requirements as part of its AMI asleverage it when needed as a standard service, follows:thereby reducing the cost of code development andenhancing flexibility to accommodate continuing ●● Automatic Meter Reading (AMR),advances in AMI technologies. ●● Load Profiling, ●● Tamper and Theft Detection, Smart Metering/AMI encompasses various ●● Supply Automation (Remote Connect/players in the energy industry. Utilities, customers, Disconnect),breegnuelafatcotrosrsanoBdfethnseoelfiuntetiosw n otefp c ArhonMvoidlIoe (grFsy,igaa r s 3e.d1teh)t ea ilemdaiinn ●● Outage Event Management (Plan and Outage Notification), ●● Information on energy consumption, billing, rates, etc. (via Web Portal, IHD and SMS), REGULATOR CUSTOMERØR eduction in Carbon Emission Ø Improve Reliability of SupplyØ Satisfied Customers Ø Improve Quality of Supply – Voltage OptimizationØ Modernized Energy Network ØU ser friendly and transparent interface with utilitiesØF inancially sound utilities Ø Increased choices for customers, i.e. green power Ø Saving due to Time of Use (TOU) TariffUTILITY SOLUTION PROVIDERØI mprove Reliability and Quality Supply Ø Create business and job opportunities for:ØR eduction in T&D Losses üE nergy infrastructure vendorsØP eak Load Management üI T Hardware providersØB etter Asset Management üS oftware FirmsØS atisfied Customers üT elecommunication CompaniesØI mprove Operational Efficiency üS ystem IntegratorsFigure 3.1 Benefits of AMI to customer, utility, regulator and solutPioOWnERpINrGoTvHiEdNeArTION 3 51
INGENIEUR Phases of funcEonaliEes of AMI (Fig 3.2) Figure 3.2: Phases of Functionalities of AMI ●● Time of Use (TOU) Based Billing, REFERENCES POWERING THE NATION ●● Smart Payment (Pre-payment), and 4 ●● Incentive Based Demand Response. These features or value-added services to 1. Utility-Scale Smart Meter Deployments, Plans,the customers will be developed and introduced & Proposals, IEE Report May 2012in phases based on the readiness of the ITintegration and legislative framework such as 2. European Smart Metering Landscape Report,Demand and Response. The targeted development Smart Regions Feb 2011of the functionalities is depicted in Figure 3.2. 3. Electric Power Research Institute, http://CONCLUSION smartgrid.epri.com/Index.aspxThe Smart Grid project is a ‘change management’journey which involves innovation throughout 4. Erlinghagen, S and Markarda, J. 2012. Smartthe electricity value chain, utilizing advanced IT grids and the transformation of the electricityand communications infrastructure, people and sector: ICT firms as potential catalysts forprocesses. It requires advanced planning to sectoral change, Energy Policy 51 (2012)ensure seamless integrations with the existing/ 895–906new systems, ICT infrastructure readiness,business process re-engineering, human capital 5. Farhangi, H., 2010. The path of the Smart Grid.development and comprehensive consumer IEEE Power and Energy Magazine January/Feb,engagement plan. The successful implementation 18–28of Smart Grid requires strong Government andregulatory support with the relevant policies and 6. House of Commons, UK, SMART METERS,supporting grants, and allows the utility to recover page 3, Dec 2012the costs through the rate base. The benefitsthat can be accrued from this project are long 7. Accenture, Forging a Path toward a Digitalterm in nature and dependent on the availability Grid: Global Perspective on Smart Gridof value-added services to customers. In this Opportunities, 2013regard, most countries provide significant grants(e.g. USA, Japan, Korea) and/or regulatory pass- 8. The Edison Foundation, Innovations Acrossthrough to customers (e.g. Australia, Spain) to the Grid: Partnerships Transforming the Powercover the high capital investment of Smart Grid Sector, Dec 2013.implementation. 9. San Diego Gas and Electric, Smart Grid Deployment Plan 2011-2020, June 6, 2011. 10. Ministry of Power, Government of India, Smart Grid Vision and Roadmap for India, August 12, 2013. 11. BC Hydro, Smart Metering & Infrastructure Programs Business Case, 2012. 12. Electric Power Research Institute (EPRI), January 2014.562 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
Datuk Ir. Hamim Samuri SPOTLIGHT TECHNOCRAT CUM POLITICIAN Datuk Ir. Hamim Samuri, Deputy Minister of Ministry of International Trade and Industry (MITI), a civil engineer by training, was interviewed by Ingenieur Editor Dato’ Ir. Fong Tian Yong at Beijing Hotel, China in February 25, 2014. Here are the excerpts from the interview.First of all, on behalf on behalf Engineer. The Building Division I consider myself lucky toBEM, I wish to thank you for is in charge of construction as be trained in various fields ofthe opportunity to interview YB well as maintenance of most engineering in JKR which is inand a belated congratulation Government buildings such as charge of roads, water works andfor your appointment as schools, hospital and clinics, public buildings for GovernmentDeputy Minister of MITI. telecommunication structures, projects. Moreover, I wasWould you like to provide us a post offices, government trained for project managementshort background of yourself quarters and so on. where scheduling, progresswhen you were working as anengineer? Ir. Fong posing questions to MITI Deputy Minister,My technical training started Datuk Ir. Hamim Samuriwhen I was granted a JohorState Government scholarship tostudy Civil Engineering at UTM.After my graduation in 1979 witha diploma, I was posted to JKRRoad Division. Later, I obtainedapproval again from JohorState Government to pursuemy Engineering degree courseat University of Strathclyde,Glasgow UK and graduated witha degree in Civil Engineering. Upon returning toMalaysia, I was posted to JKRMuar District talking charge ofBuilding Division as an Executive 53
INGENIEURmonitoring and site problem Deputy Minister of MITI? regulators. I see them as catalystsettlement was given top priority Engineering training provided in attracting more high-techfrom top management of JKR me with the analytical mind to industries to this region whichHeadquarters. With limited evaluate problems and emerge will in turn boost our economicstaff then but given many with solutions. My days with JKR performance. For that, we haveprojects to be implemented as engineer had exposed me to provide a good impressiondue to the ambitious five-year considerably with the industry and image as an investor’sdevelopment plans, me and my particularly the construction friendly nation. We have toteam had to work very hard to industry, manufacturers, sup- show foreign investors too thatdeliver the projects for various pliers, builders, tradesmen, we have the necessary humanGovernment agencies such as insurance companies, workers’ logistic support for the settingMinistry of Health, Education, union etc. Construction, after up of High-Tech industries.Defense, Internal Security, state all is a team work although Hopefully, these few High-Techdepartments etc. engineers normally play the lead industries can be a showcase to role for Government projects. the world at large that MalaysiaWhat prompted you to enter has the logistical support andpolitics? All these have given me an as an attractive location of High-When I was working with JKR edge when I serve as the Deputy Tech industries.as an engineer, I was constantly Minister of MITI. I am able toinvolved with community works comprehend with ease when the When I visited Protonand social activities for the industry players try to present automobile manufacturing plant,welfare of the rural folks. their proposals with technical I was made to understand theirI was frequently asked to jargons, theories and issues. new focus on Electric Vehiclerepair their rural roads, small (EV) as the way forward. To me,bridges, community halls and Engineering training has the whole success factor forwater mains. As a Government also facilitated me in crunching EV hinges on the performancedepartment, there is limitation numbers and analyzing data in of the battery. The battery hasas some of the requests were a swift manner as the strategic to satisfy five basic requisitesbeyond our scope. However, plans and initiatives in trade and which are the appropriate size,requests such as village road industry revolves around data as rechargeable capacity, life span,repair can be easily settled by baseline background. and cost and distance range.using quarry waste from JKR For that, I suggested to themquarry. When I was first introduced to collaborate with few other to MITI management and staff as battery industry players and For works that were beyond their new Deputy Minister as well concentrate on R&D to developmy department’s scope, I then as an engineer, I could notice an an efficient and yet affordablebegan to think of other solution interesting reaction from the battery that satisfies the abovesuch as seeking fund from crowd that acknowledged me as five requisites. I have, in fact,Wakil Rakyat to fund community both a technocrat as well as a engaged a few battery industryproject that were badly needed politician. players to work with them to gainby them. After some engagement an edge in the EV industry.with these people, I then began When I visited SilTerrato realize that one way to help Factory which manufactures Can YB tell us your missionthe community is to engage wafer in Kulim Baru, I could here in Beijing?with politics where fund and understand their technical Today, I am leading the Malaysianconnectivity with right agencies briefing and issues faced with delegation to the First meetingwere made easier. It is one ease. They were considering the of the Joint Steering Councilway to serve the community. expansion of the plant but were of China-Malaysia Qinzhou concerned with procedures and Industrial Park and Malaysia-Do you see it an advantage red tapes both technical and China Kuantan Industrial Parkas an engineer to serve as a commercial. Understanding their in Beijing on February 25, 2014. plight, I immediately offered to facilitate them by mediating with all necessary agencies and564 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
‟The new Government policy of liberalization of the service industry will pose several challenges to the local professionals who may see it as threat or opportunities. I hope local professionals such as the engineers will prepare themselves by raising their level of skill and professionalism.This is a joint council to monitor will provide special incentives for Can YB tell us some of yourthe works of the two national investors for this Industrial Park. challenges and experience instatus industrial parks jointly holding such an important postlaunched by YAB Prime Minister For this mission, I had as Deputy Minister of MITI?Malaysia and Premier of PR the honour of meeting my MITI is always on the localChina in 2011. counterpart, Vice Minister of economic radar screen as MOFCOM (Ministry of Commerce) International trade and Industry The China-Malaysia China, Madam Guo Yan. We had can be considered the lifelineQinzhou Industrial Park (QIP) a detailed discussion and free of the nation. There are manyoccupies 55 sq km in Qinzhou exchange of views in enhancing issues dealing with internationalCity, Guangxi province that is trade and industries between players for which Malaysianjointly developed by Chinese China and Malaysia. interest has to be guarded.and Malaysian companies. Forthe first phase, it will house the Talking about trade The proposed Trans-Industrial zone, Sci-Tech R&D with China, both nations Pacific Partnership AgreementZone ad Service Residential have signed a “Five Year (TPPA) still has many issuesArea. The whole park will Programme for Economic and that have not been resolved,eventually home to 500,000 Trade Cooperation” between taking cognizance of Malaysianpeople. Malaysia and China on October interest. We have to engage 4, 2013 between the Minister local stakeholders in the As the state status project, of MITI, Malaysia and Minister whole process to ensure thatinvestors here will be accorded of MOFCOM, China that was their interests too are wellspecial incentives by the central witnessed by YAB Prime Minister addressed.and provincial Government of Malaysia and HE PresidentPR China. To date, construction of PR China. The programme For the foreign direct in-works have started on phase outlines areas of co-operation vestment (FDI), we are in theone where the administrative and strategic plans in trade and transition period as we are trans-office and major roads have industry. One of the programmes forming from labour intensivebeen completed. is on engineering services. I industry to High-Tech industry. believe there are many areas We need to be more selective As for the Malaysia- that both nations can share for in choosing the right type of newChina Kuantan Industrial Park, better synergy in various fields industries while managing theplanning is at advance stage. such as energy-efficiency sector. existing industries for smootherSimilarly, Malaysian Government 55
INGENIEURtransition. With the aspiration engineers and technologists holding important posts inof expanding High-Tech industry, that are needed to support thewe need to maintain a pool of lo- industry. Any comment from YB? international organisationscal talent skill in the High-Tech I am equally concern withtechnology and highly skilled the new trend where the such as ASEAN Federation ofmanagement support. This is proportion of students takingone requisite to attract High- up science subjects has fallen Engineering Organisation (AFEO),Tech FDI to Malaysia as one way considerably in favour of art.to achieve a high income econ- This will invariably reduce the ACPE, ASHRAE REAAA etc.omy by 2020. This is where en- local supply of engineers,gineers and technologists have technical professionals and sub- Local engineers can bea pivotal role to play as support professionals, technologistsbase of the industry. and technicians to support entrepreneurs as well in the industries. The new Government exciting engineering fields sincepolicy of liberalization of the This scenario can affectservice industry will pose the investment atmosphere they have the advantage of theseveral challenges to the local especially the FDI where humanprofessionals who may see it resource supply is one factor for necessary technical knowhowas threat or opportunities. I choice of setting up industries.hope local professionals such I understand that the Ministry and the ability to innovate.as the engineers will prepare of Education is addressingthemselves by raising their level the issue where awareness I feel that Malaysia, with itsof skill and professionalism. programmes and initiatives wereJust as foreign professionals launched to encourage more rich natural resources andcan enter Malaysia to provide students to take up sciencetheir professional services; local subjects. human resources should not beprofessionals can enter into I earnestly hope that suchtheir territories as well. For that, imbalance can be rectified contended with export of naturalup skilling through training is as soon as possible so thatimportant. a steady pool of technical resources or components only personnel is maintained to As a Member of support industries. but should strive to gain aParliament few years back, Ihave been urging repeatedly in bigger piece of the pie along theParliament that JKR must setup their own training institution supply chain of the products.to create skilled humanresource logistics. I am happy What is YB’s advice to our local What is YB’s advice toto note that the suggestion engineers in advancing nation’swas accepted and that JKR has engineers? aspiration as an advancedset up a training center in Alor nation by 2020?Gajah, Perak. I firmly believe Local engineers and engineering The New World Order looksthat skilled human resource is at innovation and efficiencya critical factor for the success NGOs should link up with to thrive and survive in theof any organisation. competitive world. One can no international organisations longer rests on its laurel as inIt was reported that the number the past and expect results toof students entering science as mobility of engineers is remain as before.stream is getting less in favourof art. This may impact the the key for expansion beyond My advice to all engineersfuture supply of scientists, is to strive for innovative our shores. Malaysians are products and cutting edge technology to stand tall within known for successful overseas the international community. Malaysia is blessed with construction projects in Middle abundance of natural resources and primary commodities. We East, India and China. Malaysian should value add to them through innovative processing to provide products are also widely exported products that are sought after by international communities. all over the world. Such products The success of these new include air-conditioners, ceramic ventures will move us closer to the aspiration of our nation as a sanitary wares, E&E etc. developed nation by 2020. I am glad to note some of the active local NGOs are566 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
Development Control Via FEATUREOne Stop Centre OnlineBy Aminah Abd Rahman,Director, Local Government Department,Ministry of Urban Wellbeing, Housing & Local GovernmentEffective and efficient development control is Local Government (MHLG) has embarked on an critical to Malaysia’s urbanization process. e-Submission initiative through the establishment Development control captures several of One Stop Centre (OSC) Online. important dimensions of the construction sector which is an important economic driver of the Working towards a transparent, fast and country due to its linkages to the manufacturing efficient service delivery system at the local and services sectors. Malaysia Productivity Report authorities the Government introduced OSC in 2012/2013 registered a 18.5% growth in the 2007 to facilitate the approval processes for 32 construction sector which contributed 3.4% to GDP, types of development proposals applications. The to a total of RM 25.3 billion. processes were carried manually subjected to varied interpretations by the authorities, hence the Malaysia’s planning and construction laws different variations in procedures. Understanding prohibit development without approved planning the importance of an effective and efficient, permission, building plans and engineering transparent and uniform development control, plans. Prior approvals from the local authorities MHLG embarked on the e-Submission initiative which are also the planning authorities must be through the establishment of OSC Online. obtained before undertaking any development. Understanding the importance of an effective OSC Online provides an electronic platform and efficient development control process, for e-Submissions catering for 32 types of the Ministry of Urban Well Being, Housing and development proposal applications. This web based system is basically an extension to the manual OSC which was introduced April 2007. 57
INGENIEUR OSC Online is a platform for e-Submission provide feedback on the services rendered byand e-Processing using electronic means. The agencies.e-Submission platform is the external, virtualplatform for development proposal applications ●● e-Payment links to any existing paymentto be submitted to the local authorities. The module established at the local authorities toexternal platform is supported by the following facilitate payment on any official cost as perfeatures: stipulated by law.●● e-Enquiring which is the virtual platform for On the other hand the e-Processing Platform the public and stakeholders to obtain details which is the internal platform embraces further of the requirements of development controls standardization and electronic formatting to imposed by local authorities and the relevant facilitate Government backend processes in external technical agencies. making decisions on an application. Because it is a web-based process, compliance checks by the●● e-Complaint provides an online platform for the agencies are no longer limited to office working public and stakeholders to make complaints hours but can be accessible 24/7 which further on issues pertaining to services rendered. expedites the approval process. OSC Online has been established and●● e-Guide is an information service platform in launched by all 98 local authorities in Peninsular web-enabled Geographic Information System Malaysia. Online submission has not yet been (GIS) format that allows public and stakeholders made mandatory by the Government, hence only to verify critical planning requirements prior 25 local authorities have begun to receive and to formal submission which will improve and process development proposal applications online. expedite the approval process. There are some teething problems in OSC Online which MHLG is rectifying through a maintenance●● e-Reference is an online reference module contract with the original vendor. In line with the country’s aspiration to increasewhich refers to documents adopted by the local knowledge content as the country spearheadsauthorities and external technical agencies towards a developed nation, MHLG will continue to improve and upgrade OSC Online in tandem with●● e-Report Card allows the stakeholders, the advances of the digital era to include Artificial primarily the private sector, to evaluate and to Intelligence and e-Checks.568 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
What the Gen YEmployees Really WantBy Azizah Ali, Director, Small and Medium Solutions and Partners,Microsoft Malaysia FEATUREGeneration Y employees come to interviews and online job applicationswith a fresh set of expectations and preferences compared to theworkforce of the past. For many young workers, flexible work conditions,social computing and the freedom to use personal devices at work canbe more important than salary. In today’s economy, attracting Generation Y (Gen high approval of the personal use of social media Y) employees and keeping them is essential while at work among Malaysian workforce from to businesses that want to maintain their Gen Y employees, in comparison to other aging competitive edge. According to financial services generations; 56% of Gen Y (aged 19-30)2 believe it sector body Asian Institute of Finance (AIF) almost is acceptable to use social media for personal use half of Malaysia’s workforce1 falls into the category while at work, compared with 48% of Gen X (aged of Gen Y, or Millennial Generation. 31-48) and 38% of Baby Boomers (aged 49-66). And the approval numbers are expected to climb Gen Y employees place higher value on dramatically as Gen X and Baby Boomers start to their freedom to choose and make use of mobile retire in years to come. technology, access to social media and workplace flexibility (in terms of mobility) than salary when While some employers may be alarmed by evaluating job opportunities. Findings from the Kelly such expectations, the good news is that technology Global Workforce Index (KGWI) in 2012 displayed enables greater freedom and flexibility in work than 59
INGENIEURever before. Today’s talent pool has grown up inan environment of ever-present technology: forGen Y employees, smart phones, social mediaand instant messaging are an essential part ofdaily life. Gen Y employees are well adapted tomake effective use of personal technology, socialnetworking and Internet access in their work-life balance – a phenomenon also known as thecomputerization of IT.The Social Network, Don’t Fear It Gen Y employees with email, document handling,Rather than restrict Gen Y employees’ access contacts and calendar applications which theyto social networks and personal technology, can use virtually anywhere, and on any device.enterprises can create greater employee motivation Teams can make use of familiar applicationsand empowerment by adapting to the new model of without additional employee training. Employeesbusiness productivity. A survey by JobStreet.com can access and view documents even on mobilein 2013 concluded that over 80% of employers devices such as smart phones. Office 365 alsoagreed3 that social media tools can be used as provides business-class security so that Gen Yan advantage to drive business prospects over employees can securely connect and collaboratethose who don’t. Likewise, over 90% of employees whether they work from home, the office or theagreed when asked the same question. field. In addition, by having a team that is savvy in It’s a brave new world of knowledge workers,the social media space, your business can benefit with skills and expectations that will changefrom the powerful networking and marketing the way business is done. The small or mediumpotential of this new medium. business that can leverage the new model of business productivity will be the first to realize the Social marketing plans can start from full potential of Gen Y workers.your company’s own representatives in socialnetworks. The benefits also extend to training REFERENCESand development; senior employees can moreeffectively mentor Gen Y employees through 1 Computer World Malaysia, \"Almost half ofsocial media, passing on management skills and Malaysia's workforce is Gen Y, says Asian Instituteleadership skills. of Finance,\" (2013). http://bit.ly/O8xbAhWorkplace Flexibility and Mobile Freedom 2 Kelly Services, “When Worlds Collide - The Rise ofThe key to attracting and retaining Gen Y employees Social Media for Professional and Personal Use,”who want more mobile and flexible working Kelly Services (2012). http://bit.ly/1huxceB - Theconditions is to empower them with technology Kelly Global Workforce Index is an annual surveythat takes the computerization of IT into account. revealing opinions about work and the workplace. More than 168,000 people across the Americas, With Gen Y employees who can support EMEA and APAC regions responded to the 2012customer needs outside of normal office hours, survey. This survey was conducted online by RDAyour business can respond to changing market Group on behalf of Kelly Services.conditions with greater agility. Similarly, if your ITsystems can take advantage of today’s powerful 3 JobStreet, “Social Media Platforms Givemobile devices and support remote working, you Companies a Competitive Advantage,” JobStreet.can transition to a remote office concept in which com (2013). http://bit.ly/1jFYA6u - A total ofeach employee can potentially save hours each 394 employers and 379 employees, of whichday that would have been spent on commuting 58 percent are senior-level executives, took partand crawling through traffic jams. Flexible in the JobStreet.com survey in March 2013,working hours also make it easier to execute an to determine the impact of social media in theemployee development plan, since development workplace.opportunities can be scheduled at any convenienttime. Productivity solutions such as MicrosoftOffice 365 can enable small enterprises to equip660 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
JOB OPPORTUNITIES & FEATUREQUALIFIED IT EMPLOYEESBy Dennis Kwok, Vice President, Asia Pacific-CompTIA,The Computing Technology Industry AssociationAs job opportunities open up in the IT industry, globallyrecognized and vendor-neutral certifications of IT andrelated degrees will be useful. Such certifications helptrain and identify qualified, knowledgeable employees andmatch them with employers who have job vacancies.The global economy remains mobility is adding another level everything, from housing fragile, but Information of complexity to IT systems and Technology (IT) is a rapidly management, which will continue to hospitals, economics togrowing field that keeps adding to grow as users move away fromlayers of new opportunity. desktop computers to laptops, engineering, transportationCloud computing, for example, tablets and smart phones.is starting to mature, and to education. Companies are These days, IT touches beginning to recognize the importance IT plays in day- to-day business and, as they 61
INGENIEURplan for the future, a strong IT Super Corridor (MSC), a special Relationship Management (CRM)component is essential to any economic zone in Malaysia, and Web Design/Development.forward thinking strategy. which put the country on the path to a knowledge-based society. IT occupations are According to International Government, business and currently on the rise but jobsData Corp (IDC), global IT educational entities in Malaysia aren’t limited just to technicalspending on hardware, software continuously invest in new occupations. There are positionsand IT services reached US$2 technology to stay competitive. on the periphery, such as ITtrillion in 2013 alone, while ICT project managers or knowledgespending, including telecom A Wide Open Employment Field workers, plus non-technical jobsservices, increased by 4.8 % to in sales, marketing, HR, financeUS$3.6 trillion. According to global marketing and operations. In an even more impressive research reports provided to IT also branches intoestimate, IDC charts the IT plenty of other industries, suchindustry on a path to US$5 1,254 international businesses as health care, engineering andtrillion by the year 2020. education. The IT department and IT executives, and the within a hospital, for example, While countries like the can employ a range of senior,U.S. and UK are ahead of the 2013 International Technology mid-level and staff-level ITgame, IT market proportions positions to ensure physicians,have gradually shifted due to the Adoption and Workforce nurses and administrators haveemergence of rapidly growing reliable access to computers,markets in Asia, Latin America, Issues report published by networks and applications.Africa and Eastern Europe.Asia accounted for 29% of total Computing Technology Industry IT continues to rank highworldwide IT revenue in 2013. on corporate priority lists. 40% Association (CompTIA), the top of surveyed companies plan Malaysia, for example, to increase their IT staff. Inis a strong IT market. The 10 rated IT skills in terms of Japan, for example, 15% of thecoastal nation’s long history of companies surveyed said they’dtechnology advancement and importance to business globally planned for additional IT staffinvestment was aided in part by in their 2013 hiring plans. Inthe establishment of Multimedia are Networks/Infrastructure, Database/Information management, Server/Data Centre Management, Storage/ Data Backup, Help Desk/ IT Support, Data Analytics/ Business Intelligence, Printers/ Multifunction Devices, Security/ Cyber security, Customer662 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
Thailand, 48% of companies improve their skills, and then are who benefit. Businesses oftenplanned to add additional IT able to prove their knowledge see an uptick in productivitystaff. through certifications, can grow when their staff is certified their careers. and therefore better able toDearth of Qualified Applicants understand new technologies.Businesses adding IT staff say For those trying to get CompTIA surveyed 804 ITthey’re struggling to find qualified a foot in the door of this ever- hiring managers in the U.S.,job candidates. According to growing industry, certifications who said certified employeesCompTIA research, a whopping can be the key to landing a job are often more insightful in58% said they’re concerned or getting a promotion. Lakhmi problem solving and haveabout IT employee quality and Chand Ahuja, an engineer in an better project management andquantity . IT firm in Gujarat, India, used communication skills. his certifications to leapfrog to One solution to address an IT job at Best Buy in Canada Ricoh Singapore is athe expanding global IT workforce when he migrated to Canada company that has twice usedgap is to introduce international from India. His CompTIA A+ certifications to enhance thestandard, vendor neutral and credential is transportable from skill-set of its staff. It realizedglobally recognized certification one country to another and is back in 2009 that an investmentprograms. Such certifications being recognized globally. like this translates to betterhelps train and identify qualified, service for its customer base.knowledgeable employees and “I would rate CompTIA A+match them with employers who higher than many other vendor “We needed a consistenthave job vacancies. certifications,as this certification and objective way to evaluate tests knowledge in all fields of our competencies,” said Bruce Certifying the IT workforce information technology and not Murphy, Ricoh Singapore’scan help employers make hiring on one particular domain,” he strategic marketing manager.decisions. When someone has said. “It is a gate pass for your The company first used CompTIAproper credentials or certification first job.” certifications to enhance itson his or her resume, it brings global brand in office automationthem to the notice of hiring According to CompTIA’s equipment, and two years latermanagers. It’s also positive for “Employer Perceptions of IT sought out another certificationthe workforce. Professionals who Training and Certification” in project management. “The study, it’s not just employees 63
INGENIEURrigorous certification process ofCompTIA CDIA+ has provided uswith that benchmark by requiringdemonstrated competencein document management,”Murphy said.“The CompTIA certificationprogramme brought us backto proper guidelines of howdocument management so-lutions should be planned anddeployed,” said Lawrence Chua,a senior manager with the group,whose time with Ricoh datesback seven years.Based on CompTIA’smarket research and feedbackfrom its members, one ofMalaysia’s areas of improvementis project management. Working toward a highlyCompanies have failed, lost competitive economic region CompTIA in Malaysiamoney or missed out on bringing with a fully integrated globalproducts to market due to a lack community by 2015, the CompTIA certification is a partof project management skills. Association of Southeast Asian of the “Program Pentauliahan Nations (ASEAN) Economic Professional “(3P) that certifiesCertifications like CompTIA’s Community is building areas individuals with information technology and other relatedProject+ address those issuesand help business improve. of co-operation among its 10 degrees through a partnershipA Rise in International countries: Indonesia, Malaysia, between the Prestariang GroupStandard, Vendor Neutral the Philippines, Singapore, and the Malaysian Ministryand Globally RecognizedCertifications Thailand, Brunei, Burma of Education. To date, theAs technology evolves at a rapid (Myanmar), Cambodia, Laos programme has trained andpace, certifications are likely and Vietnam. In addition to certified more than 30,000to become more important. Malaysian students.According to CompTIA’s “2013 enhancing infrastructure, As Malaysia’s IT industryTech Adoption Study,” 67%of global executives believe communications and regional grows, CompTIA will continue toIT certifications will increase provide international standard,in importance over the next sourcing, the initiative is working vendor-neutral and globallytwo years. In Japan, 58% ofbusinesses surveyed expect the toward a region with freeimportance of IT certification toincrease over the next two years. movement of goods, services, recognized IT skills certificationIn India, 81% of businesses investment, skilled labour and a and skills developmentagree, and in Thailand, it’s 84%.Clearly,those hiring will be looking freer flow of capital. If all goes programmes through partnershipfor resumes with certificationsto set job applicants apart. as planned, the job market will with local Government open up. An IT professional in organisations, enterprises and academies. CompTIA skills the Philippines, for example, certification programme is might be able to transfer his endorsed, approved and funded skills to a job in Malaysia or by the Multimedia Development Laos without the restriction of a Corporation (MDeC). CompTIA work visa. As such opportunities will also provide Malaysia with open up, globally recognized and the latest global IT industry vendor-neutral certifications will market research and trends be even more valuable. reports.664 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
Pembiayaan Peribadi-i KPA - Kadar Pembiayaan AsasPilihlah dengan bijak. Dapatkan KhidmatDapatkan lebih penjimatan Nasihat Mengenai:dengan bayaran bulananyang rendah. Beban kewangan Bulanan▪ Nikmati KADAR pembiayaan yang RENDAH▪ Pembiayaan maksima sehingga RM200,000 (bagi pembiayaan melebihi RM150,000, pemohon mestilah berpendapatan RM120,000 setahun)▪ Tidak perlu menjelaskan pembiayaan dengan bank lain untuk menikmati KADAR ISTIMEWA kami* Khas untuk pembiayaan melalui potongan gaji atau pindahan gaji ke akaun Bank Islam dari majikan PF 001yang terpilih dan kadar adalah sah pada masa iklan ini dicetak. Tertakluk kepada terma dan syarat.
INGENIEURFEATURE Malaysian Communications and Multimedia Commission SHAPING A CONNECTED FUTURE The Malaysian Communications and Multimedia Commission (MCMC) deftly balances its dual role of regulation and development of the many sectors in the ICT industry. Under its purview, Malaysians now enjoy fast evolving network communication services with 18 million 3G mobile phone subscriptions and 3.8 million wireless broadband subscriptions. MCMC sees the need for more specialised engineers in this field and more local content for future development. ICT convergence and fast & Multimedia Act 1998 and and multimedia information and technical obsolescence includes economic regulation, content services. technical regulation, consumer pose keen challenges to the protection and social regulation It cannot be disputed (see Sidebar 1). Other legislation that the country’s networked Malaysian Communications includes the 2012 Postal communication infrastructure Services Act, Strategic Trade Act and penetration rate have and Multimedia Corporation 2010 and the Digital Signature grown by leaps and bounds Act 1997. Correlated is its role in in the last 10 years. In 2012, (MCMC). The Commission has helping the Government achieve Malaysia’s mobile phone ten National Policy Objectives penetration has reached a mammoth task as it plays (see Sidebar 2) in relation to 142.5 per 100 inhabitants. communications and multimedia According to MCMC statistics, the dual role of regulation and development. Amongst these is this places the country ahead to establish Malaysia as a major of Thailand, Taiwan, Indonesia, development of many sectors, global hub for communications South Korea, Japan, USA and China. Broadband penetration namely mobile services, broadband and internet, broadcasting, fixed services, digital certification and even postal and courier. Its regulatory framework falls under the ambit of the Communications 666 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
67
INGENIEURhas widened to 22.6 per 100inhabitants. Looking at theindustry players, there has beenmassive capital expenditure inthe telecommunications sector,reaching RM9 billion in 2012.As at end of 2013, there were916 service providers licensedby MCMC.Chairman of MCMC, Dato’Mohamed Sharil Tarmizi, inan interview with the Board ofEngineers Malaysia, notes thatMCMC has to delicately balanceits role as a regulator anddevelopmental agency, takinginto consideration the differentneeds of licensed ServiceProviders, consumers and the Dato’ Mohamed Sharil Tarmizi, Chairman of MCMC.Government. “We regulate forthe purpose of development,using regulations as tools of the Billing charges plus poor becomes involved in a complainttrade,” he explains. He is of the mobile phone service were noted about a Service Provider, theview that overall service levels as the top consumer complaints Service Providers are first givenhave improved and consumer in the Consumer Forum the opportunity to sort thecomplaints have increased Malaysia (CFM) 2012 Report. dispute out.because there are more The Consumer Forum (underconsumers. According to MCMC MCMC’s supervision) mediates (See Complaints Statisticsstatistics, there were 18 million complaints between consumers on page 69)3G mobile phone subscriptions and Service Providers of fixed,and 3.8 million wireless Responding to rising complaints, MCMC issuedbroadband subscriptions in mobile, Internet, broadcast TV a stern warning to cellular and radio services. Before CFM phone companies and three2013. major telcos were served with fines totalling RM190,000 on complaints about dropped calls. Dato’ Sharil acknowledges that the level of service has improved perkhidmatan yang mencukupi. since then but adds that there is room for improvement. Dato’ Sharil emphasizes the importance of engineers, notably electrical and electronic engineers in building the network communications infrastructure, ensuring compliance and safety, and maintenance. “They are most exportable,” he says, referring to the demand for engineers to build cellular towers all overVarious engineers at work in the communications field the world. Engineers constitute668 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
CFM Annual Report 2012 2012 COMPLAINTS STATISTCICFMS Annual Report 2012 Most notable is the extension1400 of telephony and broadband12001000 1191 services to rural Malaysia under 1045 the Universal Service Provision800 2040182 COMPLAINTS STATISTICS 600 268 2491112044200000000000 (USP). With USP, licensed 1191 1045 117 118 126 70 27 12 Service Providers contribute to800 a Universal Service Provision600 408 268 249 Fund, established under Section400 117 118 126 70 27 12 24 of the Communications and200 Multimedia Act 1998. Money 0 TOP 5 COMPLAINT CATEGORY : 2011 vs 2012 from this fund is designated 2012 2011 for implementation of networkMisleading Promotion 62 249 facilities, services and PooTr COovPer5ageCOMP6L4AINT 268 : 2011 vs 2012 applications in underserved SMS 104 CATEG4O08RY services. In 2012, this Fund Poor Service 62 249 381 20110245 2011 stood at RM1.445 billionMisleBaildliinngg &PrCohmaorgtiionng 64 268 498 1191 Poor Coverage and disbursements went intoService ProvidSeMrS Compl1a0i4nts Statisti4c08s for 2012 1045 projects such as “Kampung Others Poor Service 381 1191 Tanpa Wayar” or wireless 900 498 villages where wireless internet Billing & Charging 800 Telecommunication Tower/ Equipment access is provided to removeServ7i0c0e Provider Complaints Statistics for 2012 MiscellaneousNumber of ComplNaiuntmsber of Complaints village communities. A total of 600 ODitshpeurtse on T&C 900 UTenlfeacior mPrmacutniciecation Tower/ 4,679 wireless villages were 500 NMEqoiusCcipeomlvlaeenrnaetgoeus 800 MDisispleuatedionng TP&roCmotion in operation nationwide as end 400 UPonofariCr oPvraecratigcee 700 2013. Other USP projects 300 600 include 1 Malaysia Internet 200 500 SNMo SCoverage Centre, 1 Malaysia Netbook and 100 400 0 Community Broadband Library. 300 PMoioslreSaedrinvigcePromotion Looking at future 200 BPoilionrgC&ovCehraarggeing 100 challenges, Dato’ Sharil believes SMS 0 hardware is not much of a Poor Service Biling & Charging problem. “We can buy, build and maintain,” he explains, referring to infrastructure development. Source: Consumer Forum Report 2012 He sees development of human capital, notably more specialised engineers as critical. “We needone-third of the 650 staff at coverage in populated areas and a different set of engineers…MCMC. He notes that upgrading 85% coverage for broadband.and retraining of engineers are Every incremental 1 % increase imaging engineers, soundimportant, and new skillsets requires a lot of work andlike spectrum engineering investment” he explains. In the engineers, network engineers,and satellite communication next three years, he reveals thatengineering are needed. 1,000 cellular towers will be put video engineers…”. The other up to increase the coverage from On the communications 97% to 98%. In addition, 4G challenge would be the push forand multimedia industry growth, high-speed mobile broadbandDato’ Sharil notes that private Internet are rolling out this year. local content as consumers nowsector investment continuesunabated, moving up from a high Private-public partnerships are exposed to mainly foreignbase. “We have 97% cellular is also on-going in the country. content. “Our communications network is up and running… but the environment is never static and there is always room for improvement,” he concludes. – Inforeach 69
INGENIEURSIDEBAR 1 SIDEBAR 2Regulatory Framework for 10 NationalMCMC Policy Objectives For theThe Malaysian Communications and Multimedia Commission Communications(MCMC) is charged with overseeing the regulatory framework & Multimediafor the converging industries of telecommunications, Indusrybroadcasting and on-line activities. 1. Establish Malaysia as aEconomic regulation major global centre and hub Includes the promotion of competition and prohibition for communications and of anti-competitive conduct, as well as the development multimedia information and and enforcement of access codes and standards. It also content services includes licensing, enforcement of license conditions for network and application providers and ensuring compliance 2. Promote a civil society to rules and performance/service quality. where information-based services will provideTechnical regulation the basis of continuing Includes efficient frequency spectrum assignment, the enhancements to quality of development and enforcement of technical codes and work and life standards, and the administration of numbering and electronic addressing. 3. Grow and nurture local information resources andConsumer protection cultural representation Emphasises the empowerment of consumers while at the that facilitate the national same time ensures adequate protection measures in areas identity and global diversity; such as dispute resolution, affordability and availability of services. 4. Regulate for the long-term benefit of the end user;Social regulation Includes the twin areas of content development as well 5. Promote a high level of as content regulation; the latter includes the prohibition of consumer confidence in offensive content as well as public education on content- service delivery from the related issues industry;Postal regulation 6. Ensure an equitable Includes safeguard the provision postal service and provision of affordable promote competition in the postal and courier market. services over ubiquitous national infrastructure;Certification Authority regulation Includes control of the Certification Authority’s operation 7. Create a robust applications through licensing and audit mechanism to ensure its environment for end users; trustworthiness. 8. Facilitate the efficient allocation of resources such as skilled labour, capital, knowledge and national assets; 9. Promote the development of capabilities and skills within Malaysia’s convergence industries; and 10. Ensure information security and network reliability and integrity760 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
THE ROLE OF ICT IN FEATURENATIONAL DEVELOPMENTBy R Ramachandran, Head of ResearchPIKOM, The National ICT Association of MalaysiaThe Information Communication Technology Service (ICTS) segment ispoised to reach the mark of RM67.99 billion in 2014, registering anannual growth rate of 12.4%. In tandem, the share of ICTS in the nationalGross Domestic Product is expected to increase from 3.3% to 6.4%,almost double over the period 2000-2014.With the advent of Internet technology, Figure 1 Malaysia like many other countries in the world made its explicit entry into the Subsequently, with the dawn of the new century, theinformation age beginning with its Jaring Internet OPP3:2001-2010 has set the pace for Knowledgeservices in 1992 (Azzman, 2000, Ramachandran, Based Economy (KBE). During OPP 1 and OPP 2,2008). Since then, it has been more than two the Microelectronics Sector played a crucial role indecades that Malaysia has formulated and industrializing the economy. However, during OPP3,implemented a number of policies, strategies and the tide changed to contemporary ICT or Internetprogrammes to harness the opportunities for ICT technology. This provided online and real timedevelopment in the country. However, it must be connectivity and interactivity in conjunction withnoted that development of ICT has been an age the convergence of technology, content, people,old initiative in Malaysia. It all started in the mid-1960s when manually managed informationsystems were computerized using old mainframesystems (Alhabshi, 2002). Subsequently, theintroduction of the Free Trade Zone (FTZ) Act of1971 encouraged foreign direct investment (FDI),paving the way for the ICT manufacturing sector togain a foothold in Malaysia (Rasiah, 2009; PIKOM,2009). In essence, the country has not only beenan avid user of ICT, but has also been a strongproducer of ICT products and services over thepast four decades. Strategically, as shown in Figure 1, the FirstOutline Perspective Plan (OPP1: 1971- 1990) -being the first long term plan - provided the requisiteimpetus for developing an agro-industry basedeconomy from a laissez-faire economy that wasdominant after the nation gained its independence.This was followed by OPP2:1991-2000, whichprovided direction for an industry-based economy. 71
INGENIEURprocess and systems and was recognized as the In essence, Malaysia’s industrializationmajor driver of the KBE (OPP3, 2001). In essence, efforts through ICT manufacturing have successfullythe OPP 1 and OPP 2 policy strategies have helped reduced the overdependence on agriculture orto shift the export structure systematically from resource based sectors. Specifically, the economiclow-paying natural resources to high value-added contribution of the agricultural sector was 45.7% inmanufactured goods and services. While in OPP3, 1960 but it experienced a significant reduction towith ICT as a major thrust, is poised to create 29% in 1970 and was subsequently reduced to 8%new wealth through endogenous economic growth by 2000. In parallel, the manufacturing sector grew(EPU, 2001). significantly, more than threefold over the same period, from 9.8% in 1960 to 13.9% in 1970 and As depicted in Figure 1, each long term 32.3% by 2000. The services sector also grew butplan was driven through the Five Year Malaysia at a slower pace, from 32.7% in 1960 to 52.4% inPlans, which had their own development thrust, 2000 and poised to rise to 70% by 2020 when thein particular growth with equity (1971-1990) nation is deemed to attain a fully developed nationfollowed by balanced development (1991- status. In this regard, the ICT services sector has2000) and building a resilient and competitive been regarded as one of the key components ofnation. Notably, the past policy and development the next engine of growth.thrusts were FDI centric, while the current NewEconomic Model (NEM) and Tenth Malaysia Plan CONTRIBUTION OF ICT SECTOR TO GDP By the definition stipulated in the Malaysian Figure 2 Standard Industrial Classifications 2000 (MSIC, 2000) the traditional ICT comprised ICT(2010-2015) emphasize endogenous growth by Manufacturing (ICT production) and ICT Servicespromulgating an innovation based economy and components (Computer and Telecommunicationsleveraging on DDI as well as innovation and R&D sub-sectors). Since its inception in early seventies,initiatives that have commercial elements. The the structure of ICT Sector in Malaysia hasnew development strategy is aimed at lifting the undergone great upheavals. As per this definitionnation out of its middle-income trap identified in particular, share of ICT production componentin the NEM formulation (NEAC, 2010). In this has drastically dropped from 74.3% in the yearregard, as outlined in Figure 2, contemporary ICT, 2000 to 50% in 2010; in tandem the share ofspecifically ICT led innovation, is poised to play a ICT Services components has gained a strongersignificant role in moving the nation towards a high footing in the economy by registering increase invalue-added economy and gross national income its share from 25.7% to 50% over the period, as(GNI) (PIKOM, 2010). depicted in Figure 3. Driven by the labour intensive investment strategies in the 1970s, followed by capital intensive investment emphases in the 1980s, the ICT Sector especially the production component dominated by the Semiconductor Devices and Electronic Valves grew significantly. It is clear that in the preceding century, the country was overtly reliant on the ICT sector as one of the major sources of revenue. However, since the beginning of the new millennium, the production component has lost its competitive edge and comparative advantages. As indicated in many research studies, the structural shift in the Malaysian electronics sector, among many other reasons, was due to the impact of newly liberalized economies in Asia, mainly China, India and Vietnam which can offer relatively cheap labour762 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
Figure 3and low wages. As a result of global competition, As shown in Figure 4, the ICT Services (ICTS)the ICT sector experienced restructuring, cut-backs sub-sector has been undergoing rapid expansion inand relocation of establishments. recent years due to increasing investments, exports and imports of ICT services and economic activities Beginning 2010, the MSIC 2008 - which pertaining to telecommunications, IT computing,is based on International Standard Industrial hardware and software consultancy, maintenanceClassifications (ISIC Rev.4) of the United Nations and repair services, content and broadcastingStatistical Division (UNSD) - has replaced the MSIC activities, publishing activities particularly online2000 with inclusion of new items under codes 58, publishing and information activities. It can be59, 60 and 63, as shown in Figure 4.Figure 4 73
INGENIEUR Table 1Year ICTS Value Share of Telecommunication Computer Sub-total Publishing Motion picture, Programming Information Added ICTS to Services ('000) Services ('000) video and & Services Sub-total Overall television ('000) Services ('000) GDP (%) ('000) programme Broadcasting ('000) ('000)2000 11,771,057 3.3 10,335,256 868,758 11,204,014 193,273 373,770 567,043 401,837 671,1562001 12,744,792 3.6 10,815,979 1,257,657 12,073,636 269,319 723,191 977,956 451,370 707,3332002 14,652,306 3.8 12,261,462 1,412,888 13,674,350 254,765 900,659 1,257,373 729,783 1,117,5132003 14,992,154 3.6 12,368,517 1,916,304 14,284,821 255,963 1,060,626 1,480,038 1,303,982 1,731,0702004 16,087,422 3.4 12,773,701 2,056,348 14,830,049 356,714 1,818,648 2,266,266 1,839,604 3,594,9662005 20,187,921 3.9 16,352,349 2,718,059 19,070,408 387,730 2,001,388 5,125,801 2,189,221 5,535,4112006 23,858,012 4.2 19,252,783 3,125,191 22,377,974 419,412 3,125,069 7,401,361 4,507,122 10,674,5912007 25,036,393 3.9 19,532,436 3,772,887 23,305,323 427,088 6,119,667 14,493,7172008 30,090,354 3.9 22,655,972 5,168,116 27,824,088 447,618 9.0 21.32009 31,999,469 4.5 22,912,378 6,496,356 29,408,734 271,688 1,483,674 20.5 24.12010 42,095,951 5.3 27,106,855 9,363,020 36,469,875 503,080 1,056,006 1,565,3272011 45,259,877 5.1 29,778,845 9,945,621 39,724,466 590,079 1,065,823 1,690,2882012 52,430,520 5.6 33,166,728 11,862,431 45,029,159 719,835 1,405,592 2,150,8652013 59,835,527 6.1 36,386,010 12,774,925 49,160,935 1,038,179 2,027,211 3,102,079 2014 67,991,747 6.4 39,810,610 13,687,420 53,498,030 1,409,616 2,752,501 4,211,933 Projected Sub- 100.0 58.6 20.1 78.7 2.1 4.0 6.2Sector Share (%) 12.4 9.4 20.2 11.0 31.6 21.1 22.8 in 2014CAGR (%) : 2000- 2014Distribution of ICT Services by Sub-sectors, 2000-2014Source: Department of Statistics and Economic Planning Unit, various publications; and Projections for 2013 and 2014 by PIKOM Figure 5seen that the ICTS segment grew at a Compound (GDP) is expected to increase from 3.3% to 6.4%,Annual Growth Rate (CAGR) of 12.4% by increasing almost double over the period of 2000-2014. Theits value added services from RM11.77 billion in new additional segments constituted about 21.3%2000 to RM59.83 billion in 2013 (see Table 1). of the total ICTS sector contribution in terms ofThe ICTS segment is poised to reach the mark of value added services.RM67.99 billion in 2014 by registering anotherannual growth rate of 12.4%. In tandem, the share Public Policy Thrustof ICTS in the national Gross Domestic Product It can be also seen in the Table 1 that new764 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
Figure 6segments are registering significant growth over innovation economy through the Digital Malaysiathe past five year period attributing to dynamic Programme (DMP). Indeed, the ICT Road Map Bluegrowth in digital services in various forms Print 2012 (revised version of ICT Road Map 2008)and shades. Specifically, the ICT sector, in its as shown in Figure 5 the Government’s focuscontemporary form, has evolved to be more than a areas include e-services, ubiquitous connectivity,mere collection of technological tools. As a socio- security platforms, wireless intelligence, big dataeconomic enabler and key driver of businesses, analytics and cloud computing especially directedICT is poised to increases the process efficiency at research, innovation, intellectual property rightsand product and services delivery effectiveness. patenting and commercialization.ICT’s ubiquity and pervasive features andcharacteristics are continually impacting the way Industry Thrustone works, plays and learns. In the early stages As surmised by Gartner in Figure 6, the convergenceof information age, such changes were succinctly and reinforcement of mobile, cloud, informationharnessed through the MSC Malaysia initiative and social creates a plethora of opportunities inthat saw its introduction in the mid-nineties. the ICT technology itself and the user segmentsHaving gone through two decades of new age entail provision of services like education, health,experiences and exposures, viewing from a public logistics, communications, engineering, etc. Thepolicy perspective, the country is migrating into its industry pundits are projecting at least four keynext phase of inflection point by creating a digital trends changing the way in which a company works, 75
INGENIEURwhich in turn attributes to economic growth. The 3. Mobile device usage, particularly smartfour key trends are: phones and tablets, make customers and1. Big data analytics, which is deployed in clients more mobile and also provides access to companies’ websites, applications variety of industries to serve customers better and records wherever they happen to be; through culling out insights and predictions that the data can generate. The process 4. Social media, an offspring of the Internet can help to improve the profitability of the age. This new age media, though seen as company by assessing credit worthiness, a disruptive and unproductive activity when risk analysis and/or data supported decision staff unnecessarily waste time, can be a making processes; powerful tool for customer engagement,2. Cloud computing, which is one of the fastest relationship building, networking, information growing technological advances, helps sharing, and soliciting feedback, as well as companies to structure, organise and store branding products and services. large amounts of data without investing heavily in hardware and software tools. More In Malaysia, intensification of ICT usage is importantly, company employees always proliferating through on-going capital intensive remain connected with the help of smart economic transformation programmes and mega- phones and tablets. With such a work culture, projects that have been stimulating domestic people need not be in the office to complete demand for ICT Services. To name a few, the their tasks; they can do their work from the ICT intensive big projects include My Rapid train or bus on their daily commute, besides Transit (MRT) linking Kajang and Sg. Buluh, tele-working from home; Petronas Refinery and Petrochemical Integrated Figure 7766 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
Figure 8 Source: Jobstreet.com and PIKOM, 2014Figure 9 77
INGENIEURDevelopment (RAPID) project in Pengerang, Tun and foreign exchange rates as well as standardRazak Exchange, River of Life, Bandar Malaysia of living, the result showed that Viet Nam, Hongat Sungei Besi as well as the various economic Kong, China, Singapore and Thailand in Asia payingcorridors – Iskandar Malaysia, Northern Corridor higher salaries for ICT professionals than theirEconomic Region (NCER), East Coast Economic counterparts in Malaysia.Region (ECER), Sabah Development Corridor(SDC) and Sarawak Corridor of Renewable Energy Malaysians are also typically known to(SCORE). search of better opportunities beyond the shores of Asia. The distant lands that become attractiveICT EMPLOYMENT OUTLOOK AND PERCEPTION destinations for Malaysians are mostly EnglishFrom a total of 227 JobStreet.com clients, speaking countries, in particular United Statesmanagers and senior managers across various of America, United Kingdom, Canada, Australiaindustries in Malaysia, it was gathered that the and New Zealand. Despite the distance, theseoverall ICT employment still remains high, despite countries have long diplomatic and trade ties withfluctuations in the economy as shown in the Malaysia. Moreover, English is a popular linguaJobStreet.com Confidence Index (JECI) in Figure franca among Malaysian businesses especially7. JECI ranges from zero (very poor) to 100 (very among the private sector and there has beengood) where a low index shows a tough job market always a natural attraction for Malaysians to dosituation where employment seekers find it difficult more businesses with such English speakingto get a job and high index indicates a comfortable countries. These destinations are no exceptionsjob market, where people are able to secure a for ICT professionals as well, especially softwaregood job easily. developers and networking engineers who are in demand at all times globally. Thus, in the English Similarly, the average monthly salary of speaking world, United States, New Zealand,an ICT professional in Malaysia in 2013 was Australia, United Kingdom and Canada are stillRM7,152; see in Figure 8. This represents an attractive for Malaysian ICT professionals, despiteincrease of 7.2% from RM6,673 in 2012. This being distant nations.increase was well above the average inflation rateof 3.2% in 2013, indicating a comfortable living for ICT Industry ChallengesICT professionals in Malaysia. Given the optimistic Despite growing dynamism, the nation’s ICT sectoroutlook of the economy and other positive factors continues to face several persistent challenges.within the ICT industry, PIKOM anticipates an 8.7% However, the critical challenge lies in the provisionrise in the average salary of ICT professionals in of ICT human capital, which can be seen through2014, to a figure no less than RM7,776 per month. supply and demand side lens, as follows:- The Figure 9 shows a comparative analysis Supply of ICT Graduates: In the recent past, ICTof the remuneration earned by ICT professionals courses enrolment in both public and privatein selected Asian and English speaking countries. institutions has stagnated. As reported in the ICTHere, average remuneration earned by each Human Capital Development Framework 2012country is compared against Malaysia, giving rise during the 1990s up to the year 2001, there hasto a scaling factor that is free from bias caused by been a high number of graduates in ICT. This wasforeign exchange fluctuation. For the purpose of attributed to, first Government’s policy emphasizingthis benchmarking exercise, Malaysia assumes a ICT as driver and enabler of knowledge economy andscaling factor of one. The median data published society in mid nineties; second, the launch of MSCby PayScale for the year 2013 was used. Such Malaysia and its Flagship Applications in 1996;benchmarking statistics indicate the challenge and third, the liberalisation of the higher educationthat Malaysia face with regard to local ICT talent sector whereby many universities, especially by themigration and retention, which accentuating with private sector, were established and the majority ofincreasing globalization and market liberalization them offered various types of ICT degree or diplomapolicies and phenomenon. programs. However, 2002 marked the beginning of drastic fall in enrolments and graduates in ICT. With purchasing power parity (PPP)adjustment, which takes into account for inflation768 VVOOL 5585 AJPURNIEL 2–0J1U3NE 2014
As the statistics from the Ministry of Education regional countries, also attributes to rampantrevealed that there were over 119,000 students job-hopping for better terms of employmentenrolled in ICT courses in 2002, with a production not only within the country but also regionalof over 53,000 graduates. However, by 2012 both migration.figures fell drastically 80,000 students and 19,500 b. As Gartner highlighted, declining interestgraduates respectively. A number of factors have among young people in ICT jobs that demandbeen cited for the decline in the supply of ICT long working hours continue to plague thegraduates as follows:- growth of the ICT industry. Indeed, this is aa. Perception that ICT is not a promising global phenomenon. However, initiatives byindustry especially the disillusionment TalentCorp, which was established in Januaryarising from “dotcom bubble burst” in 2000 2011, help to redress some of the talent gapsand since then prospective students have in the ICT sector. The initiatives are carriedbeen gravitated to other emerging courses out via three strategic thrusts: optimizeespecially health-related studies that Malaysian talent, attract and facilitate globalGovernment also strongly promulgated; talent and build networks of top talent. Beingb. Widespread impression among the students new, the fruition of these endeavors is yet tothat ICT courses require extra ordinary skill be realized.in mathematics, which is indeed only true c. The ICT industry, including its workforce,in the case of computing and engineering generally lacks the interest in attaining globalsciences, and not other ICT disciplines that standards and competencies in processemphasizes innovation and creativity skills; and quality improvement activities. PIKOM’sc. Lack of timely knowledge about ICT trends, internal investigation revealed that only 6%opportunities and career prospects among of Malaysian Information Communicationsschool teachers and counsellors are also Technology Service (ICTS) providers haveplaying a significant role in dampening attained Capability Maturity Model Integrationstudent’s motivation; and (CMMI) certifications and less than 1.5% ared. Unlike medicine, engineering, architecture, equipped with the People Capability Maturitylegal and accountancy, the ICT sector lacks Model (PCMM) certification. The numbersprofessional recognition and prestige, which were further disheartening upon realizingforces students to opt for other lucrative that less than 2% of PIKOM members in thecourses; ICTS segment have employees certified with Six Sigma or Lean Six Sigma accreditations.Demand for ICT Graduates: From the demand Green ICT Certifications have yet to gainside, the human talent issues plaguing both ICT foothold in the Malaysian ICTS landscape.producers and user industries can be surmised as These certifications are critical for globalisingfollows:- Malaysian ICT products and services, ora. Quality, competency and employability of ICT to solicit ICT contracts from developedgraduates in meeting the industry’s demands economies like USA;continue to remain a critical issue. According d. Public and private universities and industriesto PIKOM past findings only 10% of the new are still behind in creating globally-entrants to workforce is directly employable, recognized ICT products and services duewhile others need to be trained before to the lack of a strong R&D and patentingplacing in proper routines. Companies, culture. Despite the long establishedespecially the smaller ones, are not willing presence of some multinationals, theto mobilize their scarce resources in training country still has weak links in the globalor coaching or mentoring activities in fear R&D and innovation network. This is due toof rampant job hopping behaviour among difficulties in getting the right candidates tonew recruits especially in the current tight embark on high value adding ICT activitiesjob employment scenario in Malaysia. Low that the Government is passionate aboutremuneration, especially in comparison to over the past two decades. 79
Search
