The Penyu Program

7/27/2019 The Penyu Program

1/32

0

The Penyu Program

Team Otak:

Jonathan Hwa

Adam Malik

Aren Yip

Erin Chuah

Reversing Brain Drain In Malaysia


2/32

1

The Penyu ProgramReversing Brain Drain In Malaysia

Chapter 1: Insights into Malaysias brain drain issue

Policy implementation roadmapChapter 4:

Chapter 3: Policy initiatives

Chapter 2: Key areas to focus on and why


3/32

2

Economic disincentives and poor quality of local labour are some

of the top causes of brain drain

-62%

OpportunityTalent

34%

-66%

OpportunityTalent

26%

2013 labour

market

Low skill

Medium skill

High skill

5,200

4,450

3,350

60% of labour is in medium

and high skill labour 66% of foreign high skill workers cited a lack ofcareer prospects as a top driver of brain drain

62% of businesses say they find difficulty in

sourcing skilled labour

Source: Grant Thornton International Business Report

Thousands


4/32333

Malaysians abroad who plan to

return to the country2

Number of Malaysian Students

Abroad1

The number of Malaysian students abroad and the potential

influence of the policy makes them an attractive segment to target

1. Source: Department of Statistics, Ministry of Higher Education2. Source: World Bank

25-29

15%

20-24

55%

40-44

0%

35-39

32%

30-34

10%

+8% p.a.

2010

79,254

2002

42,780

Age (Years)


5/324







6/32555

There is greater need for policy targeting Malaysian students

studying abroad

Brain drain target markets

Whathas

beendone?

JPA Scholars Local Graduates Overseas Graduates

Graduate

Employability

Program

Sector FocusedCareer Fair (SFCF)

Ready4work

Structured

Internship Program

(SIP)

Up skillingprogram

Graduate

Employability

Management

Scheme (GEMS)

The Economic

Transformation

Program (ETP)

Currentinitiatives have

attracted 168

JPA scholars to

return to

Malaysia as of

31st December

2012

TalentCorp Initiatives

Career Fairs with

foreign university student

councils

High-skill Migrants

Returning Expert

Programme

Facilitating the returnof overseas Malaysian

professionals to

overcome the shortage

of professional and

technical expertise

Engaging Eminent

MalaysiansLeverage on

Malaysian diaspora to

act as Malaysian Talent

Ambassadors and

contribute while

abroad.


7/326







8/32


9/32

8

Penyu program initiatives to attract overseas students back to

Malaysia

Improve employability ofgraduates

Increase visibility ofinternship opportunities

Introduce networks that

support returning graduates


10/32

991. Source: World Bank

66%

Lack of career prospects is the biggest push factorcausing brain drain


11/32

101010

Malaysia does provide an attractive economic landscape in

comparison to benchmarked countries

5.64

9.8

7.66

6.12

1.33

7.4 7.74

6.32

3.62

11.5

7.38 6.92

0.17

20.6

5.626.40

2.21

16.1

6.80 6.92

0

5

10

15

20

25

GDP Growth Rate (%) Youth Unemployment Rate(%)

MacroeconomicEnvironment

Market Opportunities

Malaysia Singapore Australia UK US

Rate / Points

1. GDP Growth Rate in 2012. Source: Economist Intelligence Unit2.Youth Unemployment Rate in 2012. Source: Euromonitor3. Macroeconomic environment evaluated based on average annual inflation, average budget balance, average government debt,

exchange rate volatility, external stability, quality of macroeconomic policymaking, institutional underpinnings for macroeconomic

stability and risk of steep decline in asset prices. Source: Economist Intelligence Unit4. Market opportunities evaluated based on market size, growth rates, income levels, trading profile and natural resource endowment.

Source: Economist Intelligence Unit


12/32

11


Malaysia





Levers Initiatives

Develop a one stop onlineinternship application portal


13/32

12

A one stop online internship portal could look like this

Source: http://www.seo-london.com/

Benefiting employers

Benefiting students

Increased visibility can help inattracting the best student talent

Structured internship programs canhelp feed the full time job pipeline

Gain exposure to the variousindustries in Malaysia

Develop marketable skills throughstructured internships Understand the job opportunities

available in Malaysia


14/32

13


Malaysia






15/32

141414

Collaborating with industry to be a part of the solution

-62%

OpportunityTalent

Stop complaining and be a part of the solution

62% of businesses say they find difficulty insourcing skilled labour

Penyu Program initiatives

Every firm that benefits fromPenyu interns will have to

contribute time to training

workshops and/or corporate

events to let all interns know

more about career opportunities

in Malaysia

Incentivize firms by

Leveraging on Penyuseconomics of scale

Sharing the cost andresponsibility of training bypartnering with Penyu

Subsidizing training cost viatax incentives

If you gain from the program, you contribute to it

Penyu

Cohort

Company A

Company C

Company B

Company D


16/32

15


Malaysia





Levers Initiatives

Run weekly training sessionswith interns

2.1 Selection of country for pilot program


17/32

161616

Training programs targeted to students of different maturity levelsy p p g

COREGetting the job

AUXILARYAcing the job

ADVANCEIndustry specific training

Resume

Cover Letter

Interview


18/32

17


Malaysia





B ildi k f i d


19/32

18

Building a support network for returning graduates can attract

and retain talent

Largest source of external hires

are internal referralsYour network is your net worth

28%

Other

20%Job boards

College

External

sources

of hire

Internal referrals

7%

45%

Improved networking with peers and mentors

from the same industry can help graduates:

Access to new opportunities

Raise their profiles within the industry by beingmore visible

Develop referral networks Source mentors that can help accelerate their

career growth

Source: 2012 CareerXroads Sources of Hire, Gerry Crispin and Mark Mehler

P i iti ti t tt t t d t b k t


20/32

19


Malaysia





Levers Initiatives

Organize networking events

that connect students and

mentors from similar industries


21/32

202020

Creating a professional network for graduates specifically in the key

sectors highlighted by the National Key Economic Areas (NKEA)

Otak Program

Renewable

Energy

ICT

FinancialServices

Healthcare

E & E

Oil, Gas

& Energy

Penyu

Program

The Pen Program


22/32

21






These policies has been proven to work on a small scale grassroots


23/32

222222

These policies has been proven to work on a small scale grassroots

level

The Otak-otak program

The Otak-otak program is builtaround a unique talentdevelopment schedule

consisting of leadership training

and corporate events

116 students have participatedin the last three years

38 high profile corporatepartners have participated in the

program

Results of Otak-otak program

36%

33%25%

6%

Because of the program, I have changed

my mind about working in Malaysia

The program has not changed my mind

about coming back to work in Malaysia

The program has not changed my mind about

working overseas in the short term and coming back

to Malaysia in the long term

I have always wanted to come back to Malaysia

straight after graduation and work regardless

Survey of 2010 Otak-otak cohort and how the

program has changed their minds

33% of students indicated that the

program has changed their mind aboutcoming back to work in Malaysia

In Year 10 the Penyu Program could potentially attract 13k


24/32

232323

In Year 10, the Penyu Program could potentially attract 13k

students to come back to Malaysia annually

80,000 students are studying abroad

and the top 4 countries attract over 60%

of malaysian foreign talent.

33% of students return back to Malaysia

from the selected pool of applicants

Source: http://www.mohe.gov.my/web_statistik/statistik2010/BAB6_PELAJAR_MALAYSIA_DI_LUAR_NEGARA.pdf

18%

8%USA

11%

Other

26%

17%

20

Egypt Australia

United Kingdom

Singapore

Percentage of students

studying abroad by

country in 2010

33%Return home to work

Work overseas straightafter graduation

Number of overseas students

who applied to the Penyu

67%

Assumptions:

55% of the students apply and are acceptedonto the program

33% of students are actively ready to join thelabour force (accounts for average 3 year

degree durations)

33% of students that applied to Penyureturned to Malaysia to work

Implementation Timeline


25/32

242424

p

Year

TargetCountries

Initiatives

574

Incorporate

Penyu inTalentCorpscareer fair

Informationsessions in majorSingaporeanuniversities

New ZealandIndiaIndonesia

AustraliaJapanUnited StatesEgypt

All countries with Malaysianstudents

United KingdomSingapore

2,310

Incorporate

Penyu inTalentcorpscareer fairs

JPA andMalaysianstudentsorganisations

5,439

JPA andMalaysianstudentsorganizations

Continue efforts initiated in thefirst five years of the program.

Initiate social media campaignand email contact with studentsin other countries

TargetNumber ofStudents(additional)

Time related size

5 1031

13,173


26/32

252525

Malaysia is prepared to absorb the increasing number of students as the

ETP expects to create 3.3 million jobs by 2020

Oil, gas & energy 52,300

Communications, Content& Infrastructure

43,162

Electrical & Electronics 157,000

Healthcare 89,000

Financial Services 45,000

Business Opportunities 229,000

Illustration Process and money flow Flow of money


27/32

262626

Illustration Process and money flow

Companies

Students

Students

matched for

internship

Internship

application

portal

Events

Training

Return for

full-time

employment

TalentCorp

Government

Flow of money

Process flow

Placement fee

Compensation

Double tax deductible

Maintenance and

upkeep

Planning and execution

Tax

33%

RM 500

RM 1800

RM 1000

RM 5

RM 295

RM 4700

G&A

RM 200


Flow of money


28/32

272727


Companies

Students

Students

matched for

internship

Internship

application

portal

Events

Training

Return for

full-time

employment

TalentCorp

Government

Placement fee

Compensation

Double tax deductible

Maintenance and

upkeep

Planning and execution

Tax

33%

RM 500

RM 1800

RM 1000

RM 5

RM 295

RM 4700

Net Profit = RM 50

y

Process flow

While Penyu Program could be a private initiative


29/32

282828

While Penyu Program could be a private initiative

PENYU

StudentsCompanies

TalentCorp will be able to jumpstart its effectiveness


30/32

292929

p j p

PENYU

StudentsCompanies

TalentCorp /

Government

Connection with

student networks

Internship

education

Tax breaks

Engaging all stakeholders


31/32

303030

g g g

TalentCorp / Government

Corporate Partners

Malaysian students abroad

Optimise, attract and facilitate global talent

Reduce brain drain

Sustainable policy implementation

Access to Malaysian talent pool abroad

Double tax deductions for intern costs

Access to internship opportunities in

Malaysia

Develop marketable skills through

structured internships

Key Stakeholders Benefits of implementing Penyu



32/32

31

Malaysia





The Penyu Program

Documents