A Study on Supply and Demand of Technical and Vocational Education and Training (TVET) Workforce in Automotive Aftermarket Industry

27

Objective 7: To provide recommendations to improve the • Quantitative Survey
implementation of the existing SLDN programmes in Part B: Q4
the Automotive field and increase participants from the • SLDN Programme
industry to collaborate with the certified training centres Statistical Analysis
in Malaysia

The projection analysis of workforce demand for the next five years was done through the
combination of Delphi Method and turnover rate calculation. Here, the required workforces of each
company are obtained through Delphi method and refined further by using the turnover rate. Delphi
method was selected because it provides the actual demand directly from the industry, and the
turnover rate must be considered since it indicates the real situation of the workforce in the industry.
Projection analysis also has to be divided into different company size groups, i.e., micro, small and
medium size, as the nature of the company in term of financial capability, facilities, organisation
structure and business direction are different between each group.

Therefore, the projection analysis calculation is performed based on the following variables:
turnover rate, direct feedback of the required workforce and current number of workforces from each
company. Let as the company size group of a particular MSIC section and as the index number
referred to a company in this group. If the turnover rate of each company is ∅ , while the current
number of workforces in the company is , and the required workforce for the next five years that
was obtained directly from the survey is , the mean turnover rate for this MSIC section is
determined as follows:

= ∑ =1 ∅ (1)
∑ =1

where is the number of sampling companies in the group. Thus, considering the mean turnover

rate of this MSIC section, the forecast of required workforce that will reflect the actual situation of a

particular company size group is

= + (2)

Equation (2) will produce the forecast number for a sampling. Thus, to obtain the overall demand
projection of workforce in the automotive aftermarket sector, results from the sampling projection will
then be reflected to the actual statistical data that published from the current census. This is done
by taking the ratio of workforce population to sample size for a certain job position. Workforce
population can be obtained from the available census or published data, while the sample size was
determined by a statistical method (Krejcie and Morgan, 1970). Assuming as the ratio, the

28

projection of required workforces in population company group for the next five years can be
estimated by the following equation:

(3)

= ∑

=1


= ∑( + )

=1

The summary of project activities is described in the following Table 3-2.
Table 3-2: Summary of the Project Activities

Phase Activity Assessment
Phase 1 Data Gathering and Assessment
Literature Review
Phase 2 Data Analysis and Evaluation Workshop and Focus Group
Phase 3 Meetings and Consultations
Formulation of Final Report Experts’ Interactions
Phase 4 Interviews with Industry Players/Technical
Presentation to JPK Research Institutes
Technical and Steering Analysis
Committee Evaluation
Automotive Aftermarket Portfolio Mapping
Employment Statistics
Report Formatting
Adoption of Results
Review and Analysis
Discussion
Recommendations
Initial Presentation
Feedback
Review
Final Presentation

29

3.2 Data Requirement Analysis

This section elaborates on the methodological process to appropriately address the project
requirement. Engineering data profiling was challenging, especially when a massive data collection
was required. The data were segregated into several MSIC codes for the aftermarket sub-sectors
as described in Table 3-3.

Table 3-3: MSIC Codes for Aftermarket Sub-Sectors

AFTERMARKET SECTION MSIC
SUB-SECTORS CODE

Manufacture of parts and C 293
accessories for motor
vehicles

Dismantling of automobiles E 383
and other equipment for
material recovery

Sales of motor vehicles G 451

Maintenance and repair of
G 452

motor vehicles

Sales of motor vehicle parts G 453
and accessories

Sales, maintenance, and G 454
repair of motorcycles and
related parts and
accessories

Other service activities S 960

Based on the statistical data of the automotive aftermarket area, the maintenance and repair of motor
vehicles (MSIC G452) covers the biggest portion of 40.54% number of companies in the automotive
aftermarket sector. The other sub-sectors like MSIC G451, MSIC G453, and MSIC G454 cover
13.19%, 29.04%, and 17.11%, respectively. These statistical data are illustrated in Figure 3-1. MSIC

30
S960, MSIC E383, and MSIC C293 cover approximately less than 1% of the total aftermarket sector,
which showed that these sub-sectors represent the least significant contribution to the total
aftermarket sector of the national automotive industry. Conflicts existed between industrial
practitioners on the definition of remanufacturing in MSIC C293 and definition of ELV parts and
components salvage in MSIC E383. The population of MSIC E383 stated in the census was found
too small to represent the whole population. A non-clear standard for this section has caused
difficulty to define an appropriate population as some of the industrial practitioners registered their
companies in other MSIC sections related to the recycling activities. Thus, the statistical study was
not suitable for these areas as the scattered information caused inaccurate forecasting data. A
detailed elaboration on the situation is provided in Section 4.6 of the report.

Figure 3-1: Distribution of the Aftermarket Sub-Sectors by MSIC Codes (APEC, 2015; DOSM, 2019;
and MOT, 2020)

31

Table 3-4: Number of Companies per MSIC Code (APEC, 2015(1); Department of Statistics Malaysia,
2019(2); PUSPAKOM, 2020(3))

MSIC SECTION No. of Companies

C293 Manufacture of Parts and Accessories for Motor (1)
Vehicles
8

E383 Dismantling of Automobiles and Other Equipment (2)
for Material Recovery
G451 Sales of Motor Vehicles 16

G452 Maintenance and Repair of Motor Vehicles (2)

G453 Sales of Motor Vehicle Parts and Accessories 8,239

(2)

25,324

(2)

18,139

G454 Sales, Maintenance, and Repair of Motorcycles 10,685 (2)
and Related Parts and Accessories
(3)
S960 Other Service Activities
56
TOTAL 62,467

In addition, based on the data given by the Department of Statistics, the percentage and
number of workforce for MSIC G451, MSIC G452, MSIC G453, and MSIC G454 are shown in Figure
3-2 and Table 3-5. The total number of workforce in these sections are 278,033 personnel and similar
to Figure 3-1, most workers are in the MSIC G452 and MSIC G453 sections. Conflicts existed
between industrial practitioners on the definition of remanufacturing and ELV parts and components
salvage in MSIC C293 and MSIC E383, respectively where the public and even researchers are
confused concerning reuse, recycling, recovering, and remanufacturing of vehicle components. Due
to a non-clear standard for this section, the number of the current workforce for MSIC C293 and
MSIC E383 is undefined (Mohamed, 2015). A detailed elaboration on the situation is provided in
Section 4.6 of the report.

32

Figure 3-2: Distribution of Workforce by MSIC G451–G454 (Principal Statistics of Services Sector,
Second Quarter 2020, DOSM)

Table 3-5: Total Number of Workers, Motor Vehicles Sub-Sector Q2 2020 (Principal Statistics of
Services Sector, Second Quarter 2020, DOSM)

MSIC SECTION No. of Workers

G451 Sale of Motor Vehicles 57,445

G452 Maintenance and Repair of Motor Vehicles 91,736
G453 Sale of Motor Vehicle Parts and Accessories 92,090
G454 Sale, Maintenance and Repair of Motorcycles and 36,762
Related Parts and Accessories 278,033

TOTAL

The research covered all the MSIC codes included in this sub-sector. However, a higher priority
was given to the sub-sectors contributing to the higher percentages of the aftermarket sector. Based
on the study on overview of automotive aftermarket industry, the following challenges and solutions
were identified:

33

1. Most of the aftermarket companies are small to medium-sized business entities. Due to the
companies’ nature, lack of organisational hierarchy contributes to a high probability of disregards
in any survey forms submitted through online. Hence, this requires on-site visits for face-to-face
meetings to ensure accurate interpretation of the companies’ feedback, especially on the
qualitative questions. In fact, observations of the companies’ culture and work environment on-
site could contribute to valuable data.

2. From the online screening process, only approximately 45% of companies are available online
and most of them do not have their own company website. This indicates the lack of readiness
for the industries to receive the digital survey. Absence in formal advertisements also indicates
the dependency of the business to a local market and increases the level of difficulty to reach
the companies. Suitable analysis approaches should be selected and designed to ensure an
accurate prediction is obtained should some companies are unreachable.

In social science research, especially for the profiling activities involving qualitative data, it was
practically impossible for the research team to approach all aftermarket companies in the population,
especially when dealing with limited time and resources. Proper selection of the sampling size for
every aftermarket category was required to ensure high data accuracy was achieved from each
category. This required additional work to be done prior to the survey activity.

The population of the aftermarket company in Malaysia was regarded as a massive finite
population and the suitable sampling size was calculated in regard to the required confident interval.
By this assumption, the minimum number of samples was determined from a statistical formula (i.e.,
Krejcie and Morgan, 1970) as shown in Figure 3-3.

34

Figure 3-3: Statistical Formula and Confidence Interval Illustration

The options are limited to 90% to 95% as the statistical data can only be regarded in an acceptable
accuracy when the achieved confidence interval (CI) is more than 90%. To ensure the reliability of
this study, 95% CI was chosen as the target accuracy in this study.

As reported in Wholesale and Retail Trade Census 2019, the total number of companies in the
automotive aftermarket sector was 62,467 companies in the year 2018. Using this number as the
population number, sampling size of 95% CI, as calculated by the statistical formula (i.e., Krejcie and
Morgan, 1970), was 382 companies. Thus, 500 companies were set as the upper boundary of the
minimum sample size. Furthermore, other factors to be considered were the possibility of receiving
inaccurate data, rejected responses, misinterpretations, or incomplete answer forms. Statistically,
the small percentage of the submitted survey produced unacceptable responses. Thus, the minimum
sampling size could be up to 500 to cover up the rejected survey forms. Table 3-6 shows the number
of companies required to meet the confidence level.

Table 3-6: Required Number of Companies to Meet the Desired Confidence Interval

Confidence Number of Minimum
Interval (CI)
Companies (N) Sample Size (S)

95 % 62,467 382-500

35

3.3 Automotive Aftermarket Research Coverage
Regions

As mentioned in the research scope, the study covered the entire of Malaysia’s regions. In order to
efficiently spread the workload when conducting the survey, our researchers were distributed based
on the number of companies existed in the regions. Every region was led by one or two researchers,
depending on the number of companies covered as shown in Figure 3-4 and Figure 3-5. Survey
questions were standardised for every region. Interview responses were interpreted into valuable
data by the experienced lead researchers.

Figure 3-4: West Malaysia

36

Figure 3-5: East Malaysia
The number of targeted companies for sampling was broken down into MSIC sections for
each state as shown in Figure 3-6. The sampling portions of respondents were arranged to reflect
the actual population scenario of each MSIC section as explained in Section 3.2, where MSIC G451–
G454 sections occupied most of the automotive aftermarket sub-sectors and the G452 section took
the largest part of the sub-sectors. Thus, for each state, the largest percentage of MSIC section was
MSIC G452, followed by MSIC G453, MSIC G454, and MSIC G451. Due to limited number of
companies for MSIC C293, MSIC E383, and MSIC S960 sections, only companies from a few states
were selected as the respondents.
The percentages of targeted companies for sampling for MSIC G451, MSIC G452, MSIC
G453, and MSIC G454 were 14%, 37%, 25%, and 17%, respectively. Meanwhile, the percentages
for MSIC C293 and MSIC E383 were 1% for each section, which is slightly higher than the actual
population percentage as shown in Figure 3-1. The reason is that in order to prevent the possibility
of losing all responses due to receiving inaccurate responses from a limited number of sampling, the
number of respondents for MSIC C293 and MSIC E383 sections needed to be increased, hence the
percentage became slightly higher than the actual population. The percentage for MSIC S960 is 5%
of the total targeted companies. Higher portion of targeted companies for MSIC S960 section is
because the population for this section does not specified for automotive aftermarket only. It includes
other services such as washing and cleaning of textile, cleaning the fur products, hairdressing,
beauty treatment, and other social activities (DOSM, 2020). Therefore, in order to obtain the actual
number of populations for vehicle inspection, which is required to project the additional number of
workforces, the survey should be done to all available vehicle inspection companies.

37

Figure 3-6: Percentage of respondents’ breakdown per state and MSIC section
Apart from the questionnaires, online data including the economic census and international
automotive industry report were collected as the assessments of the current market situation of the
automotive aftermarket industry around the world. The data acted as the control figures and baseline
database when assessing data obtained from the online survey. Qualitative and quantitative findings
obtained were linked to policy discussions related to the relevancy of the current policies and
guidelines. Strategic recommendations for industry future developments and possible action plans
were provided before disseminating into the final report.

38

3.4 Supply Analysis

The term “Supply” in this study refers to the number of graduates produced from the training
programmes. Therefore, the supply analysis was conducted in order to determine the requirement
for graduates to meet the workforce demand for the specific job positions. To provide standardised
understanding, the job positions in the MSIC sections have also been mapped with MASCO. Under
the MASCO, job positions in Automotive Aftermarket Industry can be classified into specific codes.
The MASCO has been designed in accordance with the International Standard Classification of
Occupations (ISCO) which contains ten major group categories. Seven main job positions discussed
in this report are classified into four major groups: Managers, Craft and Related Trades Workers,
Technicians and Associate Professionals, and Elementary Occupations. Nine different MASCO
classes have been determined in the Automotive Aftermarket Industries to be further categorised
into a four-digit MASCO code.

Table 3-7 shows the mapping of MASCO to MSIC classes involved. Specific skill levels
associated with the MASCO Major Group and Classification are also presented in the matrix. First
Skill Level is the lowest MASCO skill level defined under the Elementary Occupation group, while
the Fourth Skill Level is the highest skill level defined under the Managers Group. In this project, the
managerial position under every MSIC section involved are categorised as MASCO Fourth Skill
Level.

MASCO Third Skill Level was found to be associated with Sales Person for MSIC G451,
MSIC G453, and MSIC G454, Master Technician for MSIC G452, as well as the Vehicle Damage
Assessor and Vehicle Inspector for MSIC S960. As defined by the MASCO Skill Level, MASCO Third
Skill Level indicates the requirement of having Tertiary Education, such as a diploma certificate,
Malaysian Skills Certificate (SKM) Level 4, or Malaysian Skills Diploma (DKM) Level 4.

All technicians involving any MSIC sections covered by this study were classified as MASCO
Second Skill Level which required secondary or post-secondary education; SKM Level 1-3. Helper
positions, available under MSIC G452, MSIC G453, and MSIC G454, were classified as elementary
occupations with MASCO First Skill Level. MASCO code 9329 was associated with MSIC G452 and
MSIC G454 in which the workers under this category only performed simple tasks related to the
assembly of vehicle parts and components with the use of simple hand-held tools. 9334 is the four-
digit MASCO code associated with helpers related to the sale of spare part activities, who normally
performed tasks related to the filling, taking, and keeping stocks on the shelves. These elementary
occupations were defined as to only require Primary Education to be able to perform the required
tasks.

39

Table 3-7: Job Positions in Automotive Aftermarket Sub-Sectors following four-digit MASCO Codes

MSIC MSIC MASCO MAJOR MASCO MASCO MASCO OF
CLASSIFICATION CODE SKILL SKILL
CODE POSITION GROUP LEVEL LEVEL
1629
G451 Manager Managers Services Managers Fourth 5
G452 3322
G453 Sales Technicians and Business and 3113 Third 3
G454 Person Associate Administration 3115
C293 Master 3154 Third 3
E383 Technician Professionals Associate 7132 Second 2
S960 Craft and Related Professionals 7213 Second 2
G451 Technician Trades Workers Science and 7231 Second 2
G452 Engineering Associate 7412 Second 2
G453 Technician Technicians and Professionals 7624 Second 2
G454 Associate Building and Related 7231 Second 2
Technician Trades Workers Second 2
G452 Professionals (Excluding Electricians) 7132 Second 2
Vehicle Metal, Machinery and 7213 3
G454 Damage Technicians and Related Trades 7231 Third 3
Assessor Associate 7412 Third 1
E383 Vehicle Workers First 1
C293 Inspector Professionals Electrical and 3115 First
Helper Electronic Trades 3257
S960 Technicians and 9329
Associate Workers 9334
G452 Other Craft Workers
G454 Professionals Metal, Machinery and
G453
Technicians and Related Trades
Associate Workers

Professionals Building and Related
Trades Workers
Elementary
Occupations (Excluding Electricians)
Metal, Machinery and

Related Trades
Workers

Electrical and
Electronic Trades

Workers
Science and
Engineering Associate
Professionals
Health Associate
Professionals
Mining, Construction,
Manufacturing and
Transport Labourers

40

The training programmes from 428 educational and TVET institutions were related to this
study. However, the supply analysis was not as complex as the demand analysis. All these
institutions were divided into two major ministries and considered as the respondents and
participants in the supply analysis, namely The Ministry of Human Resources (MOHR) and MOHE.
The sampling size of the supply analysis, the description of the institution data coverage, and type
of supply are as illustrated in Table 3-8.

Furthermore, the modules and the training programmes are expected to be well-documented
and run by the established institutions accredited by both ministries. For the JPK Accredited Centres,
the NOSS was recognised to be relevant to this study as listed in Table 3-9. This includes
programmes with double accreditation (JPK and MQA). On the other hand, Table 3-10 shows the
information of related programmes considered as the MQA accredited programmes. To avoid a
double calculation for the number of graduates produced in the supply analysis, programmes with
double accreditation (JPK and MQA) are not included again in Table 3-10.

Table 3-8: Sampling for Supply Analysis

41

Table 3-9: List of NOSS Related to the Automotive Aftermarket Sector

NO MSIC NOSS NOSS Code
Section
TP-033-3:2015
1 C293 Vehicle Component Remanufacturing E383-001-3:2017
G451-001-3:2016
2 E383 ELV - Parts & Components Salvage G451-001-2:2016

3 G451 Car Detailing Supervision TP-304-3:2012
TP-312-5:2014
4 G451 Car Detailing Operation TP-312-4:2014
TP-312-3:2014
5 G451 Automotive Workshop Customer Service TP-312-2:2014
TP-312-1:2014
6 G451 Vehicle Sales Retail Management G452-002-5:2017
G452-002-4:2017
7 G451 Vehicle Sales Retail Management
TP-300-5
8 G451 Vehicle Sales Supervision TP-300-4
P-080-5
9 G451 Vehicle Sales Operation P-080-4

10 G451 Vehicle Sales & Supports G452-001-3:2017

11 G452 After Sales - Service Management G452-001-2:2017

12 G452 After Sales - Service Operation TP-307-3:2012

13 G452 Automotive - After Sales Service Manager TP-307-2:2012

14 G452 Automotive - After Sales Service Executive P-030-3
P-030-2
15 G452 Automotive Manager G452-005-3:2019
TP-306-3:2012
16 G452 Automotive Executive TP-306-2:2012
TP-306-1:2012
17 G452 Commercial Vehicle - Troubleshooting G452-006-3:2019
Service TP-311-3:2013
TP-311-2:2013
18 G452 Commercial Vehicle - Repair Service P-091-3
P-091-2
19 G452 Commercial Vehicle Servicing & TP-110-3
Maintenance TP-100-3:2013
TP-100-3
20 G452 Commercial Vehicle Servicing & TP-100-2
Maintenance TP-100-1
TP-301-5:2012
21 G452 Commercial Vehicle Technician

22 G452 Commercial Vehicle Mechanic

23 G452 Automotive Refinishing (AR)

24 G452 Automotive Spray Painting

25 G452 Automotive Spray Painting

26 G452 Automotive Spray Painting

27 G452 Automotive Body Repair

28 G452 Automotive Panel Beating

29 G452 Automotive Panel Beating

30 G452 Automotive Panel Beating Supervisor

31 G452 Automotive Panel Beater

32 G452 Accident Vehicle Repair Claim Advisor

33 G452 Earth Moving Equipment Maintenance

34 G452 Earth Moving Equipment Senior Technician

35 G452 Earth Moving Equipment Technician

36 G452 Earth Moving Equipment Mechanic

37 G452 Motorsports Engineering (4 Wheel)

NO MSIC NOSS 42
Section
NOSS Code
38 G452 Motorsports Engineering (4 Wheel)
TP-301-4:2012
39 G452 Motorsports Technician (4 Wheel) TP-301-3

40 G452 Motorsports Technician (Electrical & TP-302-3
Electronics)
G452-002-3:2018
41 G452 Light Vehicle - Diagnose Service G452-002-2:2018

42 G452 Light Vehicle - Repair Service TP-300-3:2016
TP-300-3:2013
43 G452 Light Vehicle - Diagnose Service
TP-300-3
44 G452 Automotive After Sales Servicing TP-300-2:2016
TP-300-2:2013
45 G452 Motor Vehicle Senior Technician
TP-300-2
46 G452 Light Vehicle - Repair Service P-115-2
P-115-1
47 G452 Automotive After Sales Servicing
G452-003-3:2018
48 G452 Motor Vehicle Technician
TP-121-3:2012
49 G452 Motor Vehicle Mechanic TP-122-3:2013

50 G452 Motor Vehicle Mechanic G452-007-3:2019
TP-332-3:2014
51 TP-332-2:2014
G452 Light Vehicle - HVAC Maintenance TP-335-3:2016

52 G452 Automotive Air Conditioning Servicing G452-004-3:2019

53 G452 Commercial Vehicle Air Conditioning TP-303-3:2012
Installation & Maintenance
TP-310-5
54 G452 Electric and Hybrid Car Servicing TP-310-4
TP-309-2:2012
55 G452 EEV-Hybrid System Diagnose Service
TP-308-3:2016
56 G452 EEV-Hybrid System Inspection Service
TP-308-2:2016
57 G452 Car Park Operation & Services
TP-308-2:2012
58 G452 Compressed Natural Gas (CNG) Vehicle P-117-3
Installation
TP-331-5:2014
59 G452 Natural Gas for Vehicle (NGV) Installation & TP-331-4:2014
Maintenance TP-331-3:2014
TP-333-1:2014
60 G452 Automotive Electrical Technologist
P-119-1
61 G452 Automotive Electrical Technologist G454-001-3:2018
G454-001-2:2018
62 G452 Heavy Vehicle Wheel Servicing

63 G452 Light Vehicle Wheel & Suspension -
Troubleshooting Service

64 G452 Light Vehicle Wheel & Suspension - Repair
Service

65 G452 Light Vehicle Wheel Servicing

66 G452 Tyre Service Supervisor

67 G452 Electric Bus Maintenance Management

68 G452 Electric Bus Maintenance Management

69 G452 Electric Bus Operation

70 G452 Vehicle Maintenance & Service

71 G452 Automotive Technician

72 G454 Motorcycle - Diagnose Service

73 G454 Motorcycle - Repair Service

NO MSIC NOSS 43
Section
NOSS Code
74 G454 Motorcycle - Maintenance & Service
75 G454 Motorcycle Servicing & Maintenance G454-001-1:2018
76 G454 Motorcycle Servicing & Maintenance TP-118-3:2012
77 G454 Motorcycle Servicing & Maintenance TP-118-2:2012
78 G454 Motorcycle Servicing & Management TP-118-1:2012
79 G454 Motorcycle Servicing & Management TP-118-5:2015
80 G454 Motorsport Engineering (2 Wheel) TP-118-4:2015
81 G454 Motorsport Engineering (2 Wheel) TP-119-5:2015
82 S960 Motor Vehicle Inspection TP-119-4:2015
83 S960 Vehicle Inspection Management TP-036-3:2015
84 S960 Vehicle Inspection Management TP-305-4
TP-305-5

Table 3-10: List of MQA Accredited Programmes Related to the Automotive Aftermarket Sector

No. Name of Programmes (NEC525) Institutions MSIC
MTUN Section
1 Ijazah Sarjana Muda Teknologi Kejuruteraan General
Mekanikal (Teknologi Automotif) Dengan Kepujian IPTS
General
2 Sarjana Muda (Kepujian) Kejuruteraan Automotif -
(Program Kerjasama Dengan Karlsruhe University of General
Applied Sciences, Jerman) General

3 Sarjana Muda (Kepujian) Kejuruteraan Mekanikal General
(Automotif)
G452
4 Sarjana Muda Teknologi Kejuruteraan Mekanikal C293
(Automotif) Dengan Kepujian G452
General
5 Bachelor of Engineering (Honours) Automotive General
Engineering 3+0 In Collaboration with University of General
Sunderland, UK General
S960
6 Bachelor of Engineering Technology (Hons) In G452
Automotive Maintenance

7 Bachelor of Engineering Technology (Hons.) In
Manufacturing (Automotive)

8 Bachelor of Engineering Technology (Hons.) In
Mechatronics (Automotive)

9 Bachelor of Technology (Hons) In Applied Automotive

10 Diploma in Automotive Engineering

11 Diploma in Automotive Management Systems

12 Diploma in Automotive Technology

13 Diploma in Vehicle Inspection

14 Diploma of Engineering Technology in Automotive
Maintenance

44

No. Name of Programmes (NEC525) Institutions MSIC
Section
15 Diploma of Engineering Technology in Automotive
Maintenance in Collaboration with Unikl MFI G452
General
16 Diploma Pengurusan Automotif General

17 Diploma Teknologi Automotif C293
General
18 Ijazah Sarjana Muda Teknologi Kejuruteraan
C293
Pembuatan (Rekabentuk Automotif) Dengan Kepujian
G452
19 Diploma Kejuruteraan Mekanikal (Automotif) POLYTECHNIC General

20 Diploma Kejuruteraan Mekanikal (Rekabentuk COMMUNITY C293
Pembuatan Automotif) COLLEGE
G452
21 Diploma Teknologi Automotif (Kenderaan KKTM
Perdagangan) C293
G454
22 Diploma Teknologi Kejuruteraan Automotif G452

23 Diploma Teknologi Kejuruteraan Automotif IKTBN
(Pembuatan)
COMMUNITY
24 Diploma Teknologi Kejuruteraan Automotif COLLEGE
(Penyelenggaraan)

25 Diploma Teknologi Kejuruteraan Automotif
(Rekabentuk Produk)

26 Sijil Penyenggaraan Motosikal (Berkuasa Tinggi)

27 Sijil Servis Kenderaan Ringan

45
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46

47

4 FINDINGS AND DISCUSSIONS

4.1 Sample for Demand Data Analysis

Quantitative and qualitative surveys were conducted on 471 companies in the Automotive
Aftermarket Sector. The breakdown number of companies for each MSIC section is listed in Table
4-1. The distribution of sampling (i.e., the companies) involved in the survey was selected to reflect
the actual scenario of automotive aftermarket in Malaysia. However, for MSIC S960 section, the
study obtains data from the actual population of the section. The sampling ratio of the companies
per MSIC section (excluding MSIC S960 section) as illustrated in Figure 4-1 shows the MSIC G452
section was the largest portion, similar with the data given by the Department of Statistic Malaysia
(DOSM) in Figure 3-1.

Although number of company for MSIC G453 is higher than MSIC G454, after the survey being
conducted, it is discovered that the MSIC G454 sections have to cover more job positions than MSIC
G453. Only three positions are involved in MSIC G453, which are the sales representative, sales
executive and manager while for MSIC G454, there are eight job positions available which include
the helper, technician, senior technician, master/diagnostic technician, sales advisor, senior sales
advisor, service/operation manager, and head of sales. Hence, more sample is required for MSIC
G454 compared to the MSIC G453 in order to achieve consistent data.

Table 4-1: Number of companies involved in the survey

MSIC Section No of Companies
C293 Manufacture of Parts and Accessories for Motor 5

Vehicles 9
E383 Dismantling of Automobiles and Other Equipment 44
236
for Material Recovery 45
G451 Sale of Motor Vehicles 76
G452 Maintenance and Repair of Motor Vehicles 56
G453 Sale of Motor Vehicle Parts and Accessories 471
G454 Sale, Maintenance and Repair of Motorcycles and

Related Parts and Accessories
S960 Other Service Activities

TOTAL

48

Figure 4-1: Percentage of Survey Conducted

4.2 Sales of Motor Vehicles (MSIC G451)
4.2.1 Current Workforce

MSIC G451 was assigned to the Sales of Motor Vehicles. This section covers both new and used
motor vehicles. Findings showed that for micro-sized companies, only four main job positions were
involved under the Sales and Marketing category, which are Sales Advisor, Head of Marketing, Head
of Sales, and Marketing Manager. Marketing Executive was absent from micro-sized companies as
the marketing work is normally done by the Head of Marketing. The marketing activities too normally
focus more on regional marketing activities. The companies’ activities focus more on sales activities
which require more sales personnel than marketing personnel.

Differently for bigger companies, complete marketing and sales job positions are required.
As shown in Figure 4-3, 7 different positions were involved, including Sales Advisor, Senior Sales
Advisor, Head of Sales, Marketing Executive, Marketing Assistant, Marketing Manager, and Head of
Marketing. The statistics recorded that more than 80% of sales personnel were required.

49

Figure 4-2: Distribution of job positions in Sales and Marketing category (Micro-sized companies)
Under the Customer Service and Dealer Development job category, micro-sized companies

do not require any Dealer Development or Customer Service personnel. However, this does not
imply that there are no customer service activities. The Customer Service job functions could also
be handled by Sale Personnel. Due to the more extensive sales activities than by the micro-sized
companies, the Customer Service and Dealer Development job category are available for small-
sized companies. Under this category, 52% from the total workers were Customer Service
Executives, 28% Heads of Sales, 12% Customer Service Managers, and 8% Dealer Development
Executives.

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Figure 4-3: Distribution of job positions in Sales and Marketing category (Small-sized companies)

Figure 4-4: Distribution of job positions in Customer Service and Dealer Development category (Small-
sized companies)

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In this MSIC G451 section, the formal education and training related to the sales activities
are extremely limited. Thus, there is no clear trend on the acceptance of specific education
background to be in any of the Sales and Marketing job positions. For micro companies, most Sales
Advisors are SPM holders. Education background is not the main concern as from the companies’
perspective, good interpersonal skills, as well as talent to convince the customers are the main
criteria. After many years of experience in sales activities, they can also obtain higher positions, such
as Manager or Head of Sales and Marketing. In small-sized companies, managerial and higher
positions are dominated by experienced workers, diploma holders, as well as degree holders.
Diploma holders are also dominant in Customer Service and Dealer Development job category,
particularly in the Head of Sales positions.

Figure 4-5: Education background for Sales and Marketing category (Micro-sized companies)

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Figure 4-6: Education background for Sales and Marketing category (Small-sized companies)

Figure 4-7: Education background for Customer Service and Dealer Development category (Small-
sized companies)

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Figure 4-8: Salary for Sales Personnel by job positions (MSIC G451)
Figure 4-9: Salary for Marketing Personnel by job positions (MSIC G451)

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Figure 4-10: Salary for Customer Service by job positions (MSIC G451)

The results of salary analysis for different positions in this particular MSIC section are given
from Figure 4-8 until Figure 4-10. These data were obtained directly from the employers or the human
resource department of the companies. The minimum salary for several positions such as Customer
Service Executive, Sales Advisor, and Marketing Assistant are aligned with the minimum monthly
wage stipulated by the government. The difference in average salary for SKM and Non-SKM holders
is significant for Marketing Executive and Sales Advisor positions. However, the presented data in
Figure 4-6 showed that only approximately 5% of SKM holders were involved in this MSIC section.

The income for the Sales Advisor and Senior Sales Advisor is flexible as most of them will
be given commission on top of their monthly basic salary, depending on the number and price of
vehicles sold by the advisors. Although low in starting salary, due to this incentive, diploma and
degree holders are also attracted to join the positions. The maximum salary for Sales Advisor and
Senior Sales Advisor can be up to RM3,800 and RM4,500 per month, respectively. The managerial
posts of Head of Sales and Head of Marketing can receive a high salary of between RM5,500 to
RM6,500 per month.

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4.2.2 Forecast Workforce

In the MSIC G451 section, over the next five years, the number of Sale Advisors will continue to
increase further while no managerial personnel are required. Based on the average attrition or
turnover rate which was discovered to be 9% per annum, the Sale of Motor Vehicles section was
estimated to increase the current Sale Advisors to 11,030 while the Customer Service and Dealer
Development job categories require additional 1,476 workforce in 2025.

Figure 4-11:Required workforce for Sales and Marketing category by year 2025 (Micro-sized
companies)

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Figure 4-12: Required workforce for Sales and Marketing category by year 2025 (Small-sized
companies)

Figure 4-13: Required workforce for Service and Dealer Development category by year 2025 (Small-
sized companies)

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4.3 Maintenance and Repair of Motor Vehicles

(MSIC G452)

4.3.1 Current Workforce

In MSIC G452 section, the job positions can be described by two different categories; Sales and
Services category and Technician category. Sales and Services category involves personnel who
generally manage sales and services and limited involvement in technical activities. Different from
the Sales Advisor as described in MSIC G451, instead of convincing the customers into buying
products, the Service Advisor is the person that assists customers in determining their vehicle
problems, as well as providing accurate repair descriptions to the Technical personnel under the
Technician category. Hence, based on the survey conducted, most of the Sales Advisors required a
certain extent of technical knowledge for them to be able to provide accurate service descriptions.

In micro-sized companies, an interesting finding was observed from the distribution of job
positions. The biggest portion of the job positions came from the managerial positions, including
Operation Manager and Head of Sales, both covering 80% of the total workforce in this MSIC section.
As micro-sized companies were described as companies that employ less than four people, it is
impossible for them to have a vast job positions as the bigger companies. Indeed, it is compulsory
for any industries to have managerial positions for them to keep developing. In the cases where the
companies have more than one employee, the companies should comprise of at least one
managerial position while technician personnel are for the rest. In contrast, for micro-sized
companies, the same person who holds the managerial position may also work as technical person.
The situation provides a justification that such micro-sized companies are deemed to require
managerial training to provide them with the important managerial and financial knowledge. This is
also aligned with the Germany’s rules, requiring the rank of “master craftsperson” before they
can start off their own businesses. As described in Section 4.8.4 of this report, the process to obtain
the master craftsperson requires them to undergo a technical competency training and also one year
additional programme comprising not only advanced technical skills and theories, but also business
management and law-related courses.

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Figure 4-14: Distribution of job positions in Sales and Services category (Micro-sized companies)
Figure 4-15: Distribution of job positions in Sales and Services category (Small-sized companies)

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Figure 4-16: Distribution of job positions in Sales and Services category (Medium-sized companies)

From the statistics, the proportion of the managerial positions (Head of Sales and Operation
Manager) to the other positions was reduced with bigger-sized companies. In medium-sized
companies, the percentage of Service Advisors is more dominant than the other positions in the
Sales and Services category as they deal with bigger number of customers. In medium-sized
companies, the Sales Advisors are typically equipped with the technical knowledge that was gained
from their service and maintenance experiences, plus training.

Smaller companies normally deal with less complicated business activities than the bigger
companies of similar MSIC section. However, the statistics showed that the proportion of Senior
Technicians to the Technicians is bigger. It is due to the small number of employees. The Senior
Technicians typically handle a small group of technicians. Differently, the proportion of the Master
Technicians for all company sizes is closely similar although they require different levels of skill sets
as bigger companies are normally equipped with higher technological facilities and deal with more
advanced vehicle technologies. Similarly, for helper job positions in micro and most small
companies, the personnel perform instructed tasks without the need of in-depth technical knowledge.
However, for medium-sized companies, the apprentices are regarded as assistants whose technical
knowledge is being upgraded and polished gradually throughout the apprenticeship programme
before they finally become the Technicians. In addition, Technicians in medium-sized companies
can be distinguished into two different job functions; Level 1 Service Technician that focuses on
maintenance activities and Level 2 Repair Technician that focuses on repairing or overhauling
activities. Meanwhile, in micro-sized and small-sized companies, the same Technician is typically
involved in both maintenance and repair activities.

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Figure 4-17: Distribution of job positions in Technician category (Micro-sized companies)
Figure 4-18: Distribution of job positions in Technician category (Small-sized companies)

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Figure 4-19: Distribution of job positions in Technician category (Medium-sized companies)

The education background of Sales and Services job category for MSIC G452 is shown in
Figure 4-20, Figure 4-21, and Figure 4-22. As aforementioned, the education background related to
non-managerial positions of Sales and Services is limited. Companies rarely set any education
requirements for the Service Advisor positions. As previously discussed, the Service Advisors are
typically absent from micro-sized companies. For small companies, majority of the Sales Advisors
are diploma holders. Although SPM is the entry level for the position, a higher education background
typically provides better interpersonal skill which is important when dealing with customers. With the
more established companies, the ability to communicate in English becomes another important
criterion in selecting the workers for this position. A different trend was observed for medium-sized
companies although majority of the Sales Advisors are SPM leavers. The required skill set will be
provided through in-house training programmes.

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Figure 4-20: Education background for Sales and Services category (Micro-sized companies)
Figure 4-21: Education background for Sales and Services category (Small-sized companies)

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Figure 4-22: Education background for Sales and Services category (Medium-sized companies)

Figure 4-23: Education background for Technician category (Micro-sized companies)

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Figure 4-24: Education background for Technician category (Small-sized companies)
Figure 4-25: Education background for Technician category (Medium-sized companies)

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Referring to the education background for the Technical category, SKM Level 1-3 are
regarded as the most suitable education background for the Technician position. Only a small
percentage (considerably negligible) of the companies hire SKM Level 1-3 holders as Helpers. The
percentage of the SKM Level 1-3 holders being upgraded into the higher positions is also higher
than those without any skill certifications. Especially for medium-sized companies, majority of the
technicians are those holding SKM Level 1-3 certificates and diplomas.

From the analysis, majority of the Helpers are SPM leavers and certificate holders regardless
of the company size. However, there is still a possibility for them to be upgraded into the Technician
position after they achieve certain working experiences. In fact, some of them have also become the
Master or Diagnostic Technicians after more than 15 years of experience in the technical area. Some
medium-sized companies, typically OEM, also conduct their own TVET programmes to convert their
apprenticeship into Technicians which justified the availability of bigger percentage of
assistance/apprenticeship with certificate holders and SPM leavers in medium-sized companies.

The availability of double certification, as well as double accreditation with international
accreditation agencies implies that the TVET programmes of Malaysia are at par with the
international standards. Mazda Training Centres provide a TVET programme that is certified by the
JPK, as well as The Institute of the Motor Industry (IMI), United Kingdom. Known as Mazda
Apprenticeship Programme (MAP) that focuses on two main areas of services and repair, as well as
body and paint, the graduates will not only receive SKM Level 3, but also a diploma from the IMI. By
adding another six to eight months after completing SKM Level 3, the graduates can receive another
certification known as Mazda Master Level F. Throughout their career, graduates will continue to
pursue higher levels in the Mazda Masters’ training programme; Level 1, Level 2, and lastly Level 3.
To be able to perform specific functions under the Technician job position, Mazda requires their
Technicians to achieve specific competency level. Three main levels of Technicians in Mazda are
Service Technician which requires the Mazda Master Level 1 certificate, Repair Technician which
requires Mazda Master Level 2 certificate, and Master Technician which requires Mazda Master
Level 3 certificate. This in-house certification programme will ensure relevant competency is
achieved to perform specific tasks under MSIC G452.

Mercedes Benz also conducts an apprentice programme to recruit their own employees,
following the Mercedes Benz requirements. This 3-year training programme came with a 4-year
guaranteed employment. This is regarded as a special programme under the SLDN in collaboration
with JPK under MOHR. The training programme covers the latest technical knowledge and
diagnostic skills in line with the advanced technology of Mercedes-Benz products. The
apprenticeship programme involves Passenger Car Technicians, Qualified Service Advisors, as well
as Qualified Body and Paint Specialists. To be selected into this programme, the students are

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required to at least complete SPM or SVM. Upon being successful in this programme, they will
receive SKM Level 3, an international accredited certificate of City & Guilds VRQ Level 3 Diploma,
as well as an apprentice certificate from Mercedes Benz.

Another initiative run by the Government is a programme called Perantisan Industri
Menengah Atas (PIMA). This programme was introduced by MOE to open opportunities to Form
Four and Form Five students who are less excellent in academics. The uniqueness of this
programme is it focuses specifically on practical learning where students only go to school two days
in a week to learn the basic subjects. Meanwhile, students will be exposed to a three-day industrial
training programme at the industrial site which will enable them to master the hands-on or practical
work according to their interests. This programme not only provides future opportunities to students
who are less interested in theoretical education, but also produces a highly-skilled generation with a
bright future, especially in the job market which is in demand, including the aftermarket automotive
industry.

The PIMA pilot project was launched by introducing seven industrial areas, including the
automotive sector. The initiative aims to stimulate the ability through practical experience in the
industry, as well as to provide the opportunities for the students to apply theoretical and practical
knowledge for two years without neglecting the importance of academics. The acquired skills build
great potential for students in choosing to continue their studies at Institution of Higher Learning (IHL)
or engage in appropriate industries upon completion of SPM. Guiding towards High Order Thinking
Skills (HOTS), the Government's efforts to offer the programme has provided many benefits,
including at meeting the students' interest in skills and gaining knowledge from the guidance of
experienced field activists in the real working environment. The content of this programme also
emphasises on soft skills such as effective communication with customers, as well as prioritises work
discipline. This programme also adds more value by giving a basic exposure to the students on how
to start off their own business. PIMA gives exposure and develops students to be more mature by
getting them involved with industrial workers. In addition to that, it also promotes national skills.
Students will be awarded an SPM certificate together with a letter of testimony from employers.

A training programme pioneered by Honda is designed to achieve the number one customer
satisfaction. All technicians and staff employed by Honda must be competent and able to meet the
standards set by the company. One of the trainings designed by Honda to achieve the all-round
customer satisfaction is called Maintenance Technician Certificate Programme. This one-week in-
house programme aims to develop the technical skills and knowledge for the technicians. This
training programme is meant to develop Honda Qualified Certified Personnel (HQCP) to be in
accordance with Honda’s worldwide quality standards. After accomplishing the repair training
course, the technicians will move on to the diagnostic technician training course. This training course

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is part of the Honda Malaysia Sdn. Bhd. (HMSB) dealer service technician training. The candidates
will receive a silver medal and recognition upon completion of the training course.

Honda Malaysia has collaborated with community colleges, including polytechnics and
private colleges with a target to receive 120 graduates per year through this collaboration. This
initiative is taken by Honda in support of the TVET programmes towards developing more skilled
and certified technicians in Malaysia through high quality trainings. The Maintenance Technician and
Repair Technician modules are incorporated into selected automotive courses. The collaboration
also welcomes students from different focus areas who have an interest to be part of Honda’s
technician team. The training is also opened to anyone who is passionate and has substantial
knowledge in automobile. Students who undergo the training are expected to graduate with better
career prospects. Upon completing the assessments and trainings, graduates will have an
opportunity to become official Honda technicians or service personnel. These modules are parts of
internal global training for the associates worldwide. This comprehensive training includes a 6-month
industrial attachment at Honda Malaysia dealerships. This exclusively designed training programme
is expected to foster understanding and equip the students with Honda’s aftermarket knowledge. In
addition to that, the programme will provide the students with a solid foundation and valuable industry
experiences.

As for Toyota, the in-house training programme is called the Toyota Technical Education
Programme (T-TEP). T-TEP programme, initiated by Toyota Motor Corporation of Japan, is widely
recognised with the implementations of more than 400 institutions across the world. UMW Toyota
Motor Sdn Bhd has invested the training equipment including simulators to run the T-TEP training.
The Toyota technician basic training is also provided, especially for automotive programme lecturers.
The company provides and shares the latest knowledge and technological advancement with all its
T-TEP automotive institutions that UMW Toyota Motor collaborate with. Toyota is collaborating with
MARA to run this training programme. Among MARA colleges that have already run this training
include IKM Jasin, IKM Kuching, IKM Lumut, Kolej Tafe Seremban, and Kolej Kemahiran Tinggi
MARA, Masjid Tanah. Students who undergo this training will be taught the Toyota culture and
discipline in Toyota Way Foundation before they are recruited as employees upon completion. The
On Job Training (OJT) opportunities at Toyota Service Centre will benefit the students as they will
be exposed to the real working environment with one of the world’s renowned automotive
companies.

This training programme is in line with the Human Capital Development thrust as mentioned
in the NAP with the objective to provide competent and sufficient workforce at all levels. This initiative
has reinforced the capacity of UMW Toyota Motor service networks in the country. There are more
than 500 workers in Toyota service networks nationwide who are former T-TEP students. With an

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experience of more than 20 years, some of them already hold positions as high as Manager
Customer Service Operations. UMW Toyota Motor would continue to further nurture and level up
quality services not only for Toyota Service Centres, but also the entire automotive industry in the
country. It is believed that the programme would contribute to the development and competitiveness
of the automotive industry in Malaysia.

Meanwhile, the results of the salary analysis for various job positions in MSIC G452 section,
which were obtained from the employers and human resource department of the companies, are
given in Figure 4-26 until Figure 4-28. Under Sales and Services job category, the salary started
with a minimum of RM1,400 for the Non-SKM Service Advisors. SKM Service Advisors earn higher
starting salary of approximately RM1,500 per month. This could be due to the experiences obtained
related to the maintenance activities. In some medium-sized companies, the Service Advisors are
typically experienced personnel who are absorbed from experienced SKM holders of Service
Technicians. Senior Service Advisors can earn an average of RM2,500 and a maximum of RM3,000
per month. Compared to Service Advisors, the Service Executives obtain similar starting salary,
beginning with RM1,400 but a lower maximum salary which is around RM2,600. All these job
positions showed that Non-SKM holder workforces in the Sales and Services job category could
obtain a higher maximum salary compared to SKM holders.

In contrast, for Technician category as shown in Figure 4-27 and Figure 4-28, SKM holder
workforce could receive a similar or higher salary compared to the Non-SKM holders. The starting
salaries for Technicians and Senior Technicians with SKM background are higher, which are around
RM1,200 and RM1,500 per month, respectively as shown in Figure 4-28. Furthermore, Figure 4-27
indicates that SKM-holder Master Technicians could receive, in average, a higher initial salary
around RM1,600. However, this initial salary obtained from the survey is not in line with the salary
guidelines published by MOHR in year 2020 (Ministry of Human Resources, 2020b). There are huge
differences where the guidelines mentioned that the Automotive Mechanics with SKM Level 3
certificate and Automotive Technicians with DKM certificate receive initial basic salaries of RM1,700
and RM2,020, respectively.

Meanwhile, the Service/Operation Managers and Heads of Sales can obtain maximum
salaries as high as RM3,900 and RM4,000 per month, respectively. For these managerial posts, the
personnel are normally promoted due to their vast experience in management and related field, thus
the SKM background has no influence on the salary range.

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Figure 4-26: Salary for Sales and Services personnel by job positions (MSIC G452)
Figure 4-27: Salary for Master/ Diagnostic Technicians and Supervisors (MSIC G452)

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Figure 4-28: Salary for Senior Technicians and Technicians (MSIC G452)
For micro companies, they prefer to hire SPM leavers, as well as persons with no education
background for the Helper/Assistant positions. Hence, the salary is usually lower (minimum wage of
RM1,100 to RM1,200) due to the low education level and the ability of the micro-sized companies to
pay higher salary. However, with certain knowledge in automotive, the small and medium-sized
companies tend to take the SKM holders (normally SKM Level 2) as their Helpers. Especially for
medium-sized companies, the Apprentices are also considered as Helpers/Assistants that normally
gain higher salary than those hired by micro-sized companies. The average salary of SKM and Non-
SKM Technicians are closely similar, however, the SKM holders typically obtain a slightly higher
starting salary than the Non-SKM holders. In some companies, Technicians will receive a certain
amount of commission on the service activities performed. The commission depends on the number
of cars and the value of the service fees provided. In bigger companies, the technicians’ performance
in term of their working efficiency and productivity also influences their year-end bonus and salary
increment. Due to better competency, the SKM holders are also more easily promoted to the higher
positions than the Non-SKM Technicians. In some medium-sized companies, the SKM holders are
easily promoted to Master Technicians after six to seven years of working experience, with certain
competency levels of assessment achievements.

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4.3.2 Forecast Workforce

Collective data from companies under MSIC G452 section indicated the attrition or turnover rate of
4% per annum. Considering the attrition rate, this MSIC section will contribute 56,462 workforces in
Malaysian Automotive Aftermarket Industry in the next five years.

Information on the forecasted demand in specific job positions will not only provide the
information on the required workforce, but also on the company evolution and development
strategies. Under the Sales and Services category, micro-sized companies tend to hire more Sales
Advisor job positions in the next five years than the managerial positions. In fact, no additional Head
of Sales is required. This indicates that micro-sized companies tend to evolve into bigger-sized
companies. On the other hand, small-sized companies have more tendency to open new company
branches as a bigger number of Head of Sales are forecasted in 2025. In overall, the medium-sized
companies provide only a small percentage in the increment of workers that are required in the next
five years, which is explained by the smaller proportion of medium-sized companies than the other
company size categories.

Figure 4-29: Required workforce for Sales and Services category by year 2025 (Micro-sized
companies)

Figure 4-30: Required workforce for Sales and Services category by year 2025 (Small-sized
companies)

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Figure 4-31: Required workforce for Technician category by year 2025 (Medium-sized companies)

Figure 4-32: Required workforce for Technician category by year 2025 (Micro-sized companies)
Figure 4-33: Required workforce for Technician category by year 2025 (Small-sized companies)

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Figure 4-34: Required workforce for Technician category by year 2025 (Medium-sized companies)

4.4 Sales of Motor Vehicle Parts and Accessories
(MSIC G453)

4.4.1 Current Workforce

MSIC G453 section is focused only on the sales of motor vehicle parts and accessories exclusive of
the parts/ accessories’ installation. The companies in this section can be divided into micro-sized
and small-sized companies because the amount of medium-sized companies is rare, i.e., around
1% of the total number of companies (Department of Statistics, 2018). Job positions in this section
fall under one category only which is Vehicle Part and Accessories Sales category because this
section does not involve parts installation.

Figure 4-35 and Figure 4-36 show the current portion of every job position in MSIC G453
section for micro-sized and small-sized companies, respectively. For micro-sized companies, 48%
of the workforce is Head of Parts and Accessories After-Sales. Next is the Sales Representative
which reached almost 36% of the current total workforce. As every company must have a person
who leads and manages the sales and operation of the company, companies with a small number
of workforces tend to have lead positions only. This is the reason why in Figure 4-35, the Head of
Parts and Accessories After-sales has the largest portion in the job position distribution of micro-
sized companies. The distribution of lead positions become smaller and evenly distributed in small-
sized companies as shown in Figure 4-36.

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Figure 4-35: Distribution of job positions for Vehicle Parts and Accessories Sales category (Micro-
sized companies)

Figure 4-36: Distribution of job positions for Vehicle Parts and Accessories Sales category (Small-
sized companies)

This study found that the current workforce in MSIC G453 section are mostly SPM leavers
followed by certificate holders, as shown in Figure 4-37 and Figure 4-38. For the micro-sized
companies, the largest portion of SPM leavers are hired as Helpers/Assistants while the largest
portion of certificate holders are hired as Sales Representatives. In contrast, most of the SPM leavers
are hired as Sales Representative and certificate holders are hired as Helpers and Sales Executives

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in small-sized companies. This erratic pattern indicates that similar to MSIC G451, higher education
level is not the main criterion to be hired as Sales Representatives or Executives. Instead,
interpersonal skills such as communication skills and ability to make sales are important qualities
sought by companies. Based on the industry feedback, modular courses such as training in digital
marketing conducted by MARii help the industry to increase their sales by marketing their products
at the international market.

Figure 4-37: Education background for Vehicle Parts and Accessories Sales category (Micro-sized
companies)

Figure 4-38: Education background for Vehicle Parts and Accessories Sales category (Small-sized
companies)

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Figure 4-39: Salary for Parts and Accessories Sales by job positions (MSIC G453)
Figure 4-39 shows the results of the salary analysis for various job positions in MSIC G453
section. This data was obtained directly from the employers and human resource department of the
companies involved in the survey. The average salary for a Part and Accessories Sales
Representative is RM1,800 per month in Malaysia irrespective to the SKM certification. In total, less
than five percent of SKM holders are involved in this MSIC section. Except for the managerial
positions, the highest salary for the sales personnel is the Sales Executives with SKM background,
where the maximum salary is approximately RM3,800 per month.

4.4.2 Forecast Workforce

Results from the collective data found that the average attrition or turnover rate for micro-sized
companies is 4% per annum and 2% per annum for small-sized companies. Considering the attrition
rate, micro-sized companies of MSIC G453 section require a large number of Heads of Part and
Accessories After-Sales. The required additional number is estimated to be 2,632 personnel for the
next five years as shown in Figure 4-40. Quite a number for Sales Representative and Helpers/
Assistants are also required by year 2025.

A required large number of head positions indicates that the micro-sized companies will grow
in number for the next five years. As the total number of workforce in micro-sized companies is less
than four as per Small and Medium Enterprise (SME) definition, thus it is forecasted that no demand
for Sales Manager or Executive position in micro-sized companies as the role of this position can be
met by the Head or the Sales Representative. On the contrary, there is a very large demand for