Skills for Prosperity in South East Asia Programme (SfP-SEA) – Malaysia

Terms of Reference (TOR) for

Industrial Sectoral Situational Analysis

1. Background

The Skills for Prosperity in South East Asia Programme (SfP-SEA) aims to contribute to increasing national capacity to achieve sustained and inclusive growth through the enhancement of skills development and technical and vocational education and training (TVET) systems in Malaysia, Indonesia, and the Philippines.

To achieve this objective, the programme works with government agencies, employers’ organisations, trade unions, educational institutions and other partners in Malaysia, Indonesia and the Philippines to facilitate review and reform of the countries’ skills development and TVET system strategies and policies. In the region, the SfP-SEA provides opportunities for mutual learning among the three countries and the other ASEAN nations, and beyond—not only showcasing the results of the pilots and lessons learned from the programme but also facilitating the sharing of best practices in the region and other parts of the world.

In Malaysia, the Programme focuses on increasing skills development and TVET systems’ readiness to meet the skills needs of the future of work and those of vulnerable groups, through enhancing four areas of the TVET system and delivery:

• Equity:  Inclusiveness in skills development and TVET systems
• Quality: Future-ready & coordinated skills development and TVET systems
• Relevance: Demand-driven skills and TVET/skills recognition
• Cost-Effectiveness: Improved skills/TVET financing models

  The SfP Malaysia Project focuses on TVET inclusiveness, quality, relevance and readiness whilst addresses skills mismatch issues in the area of critical needs for skills development and TVET to support the industry development and socio-economic progress. It intends to assist national partners in improving policies to ensure industry-led TVET in public and private sectors and increase employment and career progress opportunities for TVET students at national and sub-national levels. The national and sub-national activities at two states, namely Sabah and Kedah, will target:

• The primary beneficiaries: youths (ages 16-25) and women; and
• Other beneficiaries (vulnerable groups):
  • Members of the B40
  • Persons with Disabilities
  • Individuals Not In Employment Education or Training (NEET)
  • Small and medium-sized enterprises (SMEs)
  • Workers in the informal economy
  • Self-employed individuals
  • individuals employed in the gig economy

The SfP Malaysia Project has identified the need to conduct industrial sectoral situational analysis responding to Activity 3.1.7 Review on the sector’s business environment and labour and economic challenges and opportunities (for 2 selected sectors), including recommendations for greater gender and inclusion. This is expected to contribute to producing the Output 3.1 – Policy and institutional mechanisms for industry engagement in TVET are established in selected priority to strengthen linkages between industry upgrading strategy and sector skills development strategy.

Enterprises in Malaysia are often said to face skills mismatch since skills of many TVET graduates do not meet their requirements. Therefore, the Project aims to build an improved TVET-industry engagement framework, which is expected to improve the linkage between industry and TVET institutions and reassess gaps between TVET programmes and employer skills needs.

1. Objective

The objectives of the industrial sectoral situational analysis are to:

• Understand the background of the selected industrial sectors and key government policies and legislation for industrial and skills development.
• Understand the overview of occupational structure of the respective sectors and skills demand and mismatch.
• Obtain inputs to fine-tune the implementation plan in particular for activities under the Relevance Outcome of the project.

  Scope of Work

Under the supervision of Chief Technical Advisor and with guidance from Senior Project Officers, regional specialists of the ILO, the main responsibility of the consultant is to conduct the sectoral situational analysis at the national level and in two selected states, Sabah and Kedah. A national consultant should also incorporate technical guidance from an international consultant, who will be separately recruited as an advisor for this study, to research design, data analysis, and report drafting.

At the national level, the analysis should be conducted mainly focusing on two target sectors: (i) manufacturing (focusing on food processing and textile and garment industries; and (ii) construction (e.g. building operation and maintenance services / crane supervision). At the sub-national level, a consultant may be required to analyse another industrial sector beyond the two selected national sector/subsector, depending on the suitability of the sector focus in the sub-national context.

The consultant is required to:

1. Conduct desktop review on:

1. Industry outlook of the selected sectors, including: (i) overview of supply chain (e.g. procurement of materials, position in the global supply chain); (ii) current position in the value chain (e.g. progress of R&D); (iii) challenges in moving up value chain; and (iv) industry expansion plans and institutional support provided by government, employers’ organizations, or others.
2. Skills gap and shortages as well as employer skills needs in the particular selected sectors.
3. Overview, characteristics, and trend of skills standards in selected sectors.

    

1. Collect and analyse the following quantitative data on industry and labour market (10 year time series data)
   1. Contribution (value-added) by the selected sectors to the national / state Gross Domestic Product (GDP).
   2. Indicators that reflect the level of technology use in the selected sectors (e.g. high technology export, R&D investment or intensity) if available.
   3. Employed population shares by industrial sectors, including selected ones, at national and subnational levels.
   4. Labour force participation rate in the specified industrial sub-sectors (e.g. food processing, textile and garment, building maintenance and crane supervision) at the national level and the selected sub-sectors within the states of Kedah and Sabah. The disaggregated data by gender and skill levels is also required. Malaysia Standard Industry Classification (MSIC) should be used as the main reference for the classification of sector/subsector.
   5. Average and median income (by gender, skill levels and states) within selected industry sub-sectors at national and sub-national levels.
   6. Any other data that is relevant to the enrichment of the situational analysis, such as recruitment or vacancy data by industrial sector.

       

1. Analyse following qualitative data on the perceptions of key stakeholders, which should be collected through in-depth interviews with employers’ and workers’ organizations, such as the Malaysian Employer Federation (MEF), the Federation of Malaysian Manufacturers (FMM), the Master Builders Association Malaysia (MBAM), and the Malaysian Trade Union Congress (MTUC) as well as employers in selected sectors:
   1. Future business plan and skills needs.
   2. Challenges in moving up value chain.
   3. Labour market trend, including the roles of female, youth, and PWDs.
   4. Current skills demand and mismatch.
   5. Barriers to labour market entry and career progression, and the efficacy of existing practices to promote inclusion within the selected industry sectors.
   6. Current industrial and skills policies and anticipation.

       

1. Compile and provide analysis of:
   1. National industrial policies and plans, such as 11th Malaysia Plan (MP), the Third Industrial Master Plan (IMP3),  sectoral master plans and blueprints, and state government industrial policies and plans in Sabah and Kedah.
   2. Gaps between current industrial policies and employers’ needs.

1. Provide strategic advice and inputs on the Project’s industry engagement plan and implementation plan, including but not limited to the following matters:
   1. The Project’s sectoral approach to skills development.
   2. Potential implementation partners for activities under the Relevance Pillar.
   3. Potential champion enterprises for the project activities.
   4. Baseline indicators.
   5. Potential risks for project activities.

       

1. Methodologies

The study may apply multiple method as follows:

• Preliminary information gathering via desk / literature review.
• Quantitative research by analysing statistical data obtained from government agencies as well as survey data (if any).
• Qualitative research by engaging with industrial experts via on-line or physical interviews.

1. Outputs

The consultant is required to produce the following outputs:

Interim Outputs (within the first 23 days)

1. The written interim report in a suitable format which includes:
   • Preliminary findings of industry and labour market analysis, regarding the data listed in in section 3 of this TOR, including supply chain analysis, skills demand and mismatch, employment, and key policies and regulations, in selected industry-sectors at the national and sub-national level (Sabah and Kedah).
   • Outline of strategic advice and inputs on the project strategies.
   • Preliminary reports on consultation, including summaries of interviews and small group discussions with stakeholders.
2. Presentation of the interim outputs in a suitable presentation format (e.g. PowerPoint).

    

   Final Outputs

1. The final written report in a suitable format which includes:

• Comprehensive sectoral situational analysis based on the data listed in section 3 of this TOR for the selected industrial sectors at the national and subnational (Sabah and Kedah) level.
• Strategic advice and inputs on the programme strategies.
• Full consultation summaries of interviews with stakeholders.

1. Presentation of the final outputs in a suitable presentation format (e.g. PowerPoint).

1. Timeline

The estimated number of workdays for this consultancy is 45 days spreading over 2.5 months from 26 November 2020 until 9 February 2021.

Below are the targets dates to produce outputs:

Tasks

No. of days

Location

Output

1. Initial meeting with the ILO to agree on the overall plan and ways of working.

1

KL

Work Plan

2.  Desk review of relevant materials, including internal research on sector’s scanning

1

Home

3. Develop the quantitative and qualitative research methods

2

Home

• Research design

4. Collect and analyze quantitative data through desktop review, official data requests from respective Ministries, TVET institutions and employers’ organizations, civil society organizations, and others.

9

Home, On-line, KL, Sabah, Kedah

• Statistical Data
• First draft of consultation report (including summaries of interviews)

5. Prepare and conduct in-depth interviews [MBMA1] with key stakeholders to collect qualitative data on market scenario / outlook, business plans, supply chain, labour market data, skills mismatch, and current and future skills demand..

5

Home, On-line, KL

• Key drivers of change
• List of business capability gaps
• List of issues / implications to skill

6. Conduct preliminary qualitative and quantitative analysis on item 4 and 5 above.

4

Home

5. Presentation of interim results to S4P Malaysia team

1

KL/On-line

The written interim report and presentation materials by 28 December 2020

6. Continue to complete data collection and information gathering

5

Home, On-line, KL, Sabah, Kedah

7. Complete the full qualitative and quantitative analysis on market scenario, various industrial policies related to the specified sectors, occupational structure explaining on skill gaps and development.

3

Home

8. Compile and provide in-depth analysis of relevant laws, policies, and regulations the respective sectors.

3

Home

9. Develop strategic advice and inputs on the programme’s industry engagement plan and the implementation plan.

2

Home

10.  Compile all information in the final report.

5

Home

11.  Presentation of final results to the SfP Malaysia team

1

KL/On-line

The 1st draft of the final report and the presentation material

12.  Revise and edit the report according to the results of the workshop

2

Home

13.  Submit the final report

1

Home

The final draft of the report on 9 February 2021

Total

45

1. Required Qualifications

The assignment should be carried out by an individual consultant who should have the following qualifications:

Education: Advanced university degree in economics, social sciences, public administration or statistics, with expertise in the field of industrial development, labour market analysis, and TVET/skills development. 

Experience:

• A minimum of five years of experience in working on industrial development and/or skills development and TVET.
• Experience in carrying out quantitative and qualitative research.
• Experience in producing high-quality reports in English.
• Experience in working for international organisations.

Qualifications:

• Excellent understanding of situations related to industrial development and/or labour market analysis, and TVET/skills development in area of skills development in Malaysia.
• Excellent analytical and writing skills in English.
• Solid understanding and skills on qualitative and quantitative research methods.
• Excellent coordination skills.
• Good communication skills in both English and Malay.
• Ability to use a variety of computer applications and software to carry out data collection and analysis

Languages: Excellent command of English and Malay.

1. Application

Interested individual consultants or institutions must submit the following documents/ information to demonstrate their qualifications:

• Curriculum Vitae
• Proposal describing how he/she will approach and conduct the work including the number of days (3 pages maximum)
• List of team members
• One writing sample, such as a report or paper.
• Estimated budget (financial proposal), i.e., professional fees (daily rate and expected number of working days) and additional expenses (e.g. transportation costs), for completing the work.

The interested consultants are requested to submit the above documents electronically to jmori@ilo.org and mohdbadrin@ilo.org by 11 November by 4:00 pm MYT. 

1. Contract duration

The contract will commence from 26 November 2020 – 9 February 2021.