In Malaysia, there is a noticeable trend towards the hiring of contract talent by global organisations and start-ups, particularly in sectors such as technology, manufacturing, food and beverage, and retail.
The primary motivations for companies opting for contractors over permanent employees include the immediate need for project support and a strategic focus on cost savings, often driven by directives from their global headquarters.
Gain valuable insights into Malaysia’s dynamic job market directly from our experts, all captured in the 2025 Job Market Outlook and Salary Guide. This digital report offers analysis of labour market trends, hiring patterns and salary benchmarks across key sectors in Malaysia.
hiring contract talent to explore malaysia’s market potential
An intriguing trend has emerged among companies hiring contract talent: many organisations are exploring the feasibility of Malaysia as a viable market for their operations.
This trend is particularly noticeable among firms from China and the Middle East, which are actively seeking local contract workers to help them navigate the Malaysian business landscape.
By employing contract professionals, these companies can gain valuable insights into market conditions, consumer behaviour, and operational challenges without committing to long-term employment. Currently, they are also hiring management teams on a contract basis as a start, typically comprising heads of departments, before they establish their long-term presence in Malaysia.
In addition to management, these organisations are bringing on other senior professionals on a contractual basis, such as HR managers and office administrators, who play crucial roles in setting up local operations. They may also hire finance leads to establish financial processes and ensure compliance with local regulations.
contract roles are on the rise, as companies adapt to digital transformation and changing demands
A significant trend in the hiring landscape is the increasing preference for talent who are open to contract roles for specific projects, particularly in sectors such as infrastructure and digital transformation.
Many companies, especially those in technology, are hiring contract workers to develop new products, such as mobile applications or to integrate processes as part of their transformation initiatives, or simply to close the skills gap in their organisation.
This trend is prominently observed among global multinational corporations, e-commerce platforms, and fintech firms, where contract roles are often found in areas like mobile design, content creation, advertising, and digital marketing.
In non-technology sectors, such as infrastructure and manufacturing, contract positions are typically focused on operations, project engineering, and project management.
The customer service sector also increasingly hires contract workers due to budget constraints and headcount limitations.
Many organisations opt to employ customer service representatives on a contract basis while outsourcing employee benefits and payroll management to talent agencies. The key qualifications for these roles include a customer-oriented mindset, strong communication and problem-solving skills, and proficiency in multiple languages such as English, Chinese, and Bahasa Melayu to effectively serve customers remotely.
senior consultants embrace contract roles for work flexibility and career growth
We have observed a group of senior consultants who do not need persuading when it comes to contract job opportunities. They value the flexibility and challenge that comes with the job rather than long-term commitment.
The flexibility is not indicative of a lack of loyalty; rather, it reflects an understanding that these professionals are often not planning to stay with a single organisation for an extended period. Many are eager to move on quickly after they have delivered their services, especially as they look to negotiate higher salaries in their next contracts.
For example, SAP consultants who have previously worked with various organisations are actively mapping the job market to identify new opportunities. This trend highlights a broader shift in the workforce where some professionals in Malaysia prioritise agility and the potential for career advancement over traditional job security. To effectively attract qualified and well-networked contract employees, employers must be prepared to offer competitive compensation and exciting career opportunities.
Given their extensive backgrounds and industry connections, these individuals often command higher salaries, reflecting their value in the marketplace.
However, financial incentives alone may not suffice; these professionals seek roles that provide them with opportunities to engage in meaningful problem-solving and tackle complex challenges.
Employers should emphasise the unique projects and innovative initiatives available within their organisations, showcasing how these roles can offer both professional satisfaction and the chance to make a significant impact. We will likely see a larger senior contracting talent pool in 2025, as more experienced and technically skilled professionals seek to leverage the market’s growth opportunities to fast-track their careers.
offer longer work contracts to attract more job applicants
Despite these attractive contract work opportunities, job stability remains a top concern for many workers and many job seekers still prefer permanent positions. Employee benefits like extending health insurance to contractors can also be attractive to some job seekers.
To address this demand for stability, some companies are now offering longer contract durations—typically two years instead of one—to provide a greater sense of security for those open to contract roles. More candidates are open to such opportunities as it offers them some levels of stability, not only for financial reasons but also to avoid the stress associated with frequent job searches.
download randstad malaysia’s 2025 job market and salary trends report
The report examines key talent expectations as well as key sector trends and salary benchmarks in the following industries:
- accounting and finance
- construction and property
- human resources
- legal
- manufacturing
- sales and marketing
- shared services
- technology
- contracting
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