Malaysia is poised for continued strong economic growth in 2025, driven primarily by its digital economy, manufacturing and construction sectors.
The fast-paced developments in digitalisation and constantly changing business environment, have created a greater need for skilled professionals with specialised expertise.
As companies expand their operations and investments within Malaysia, there is a pressing need for skilled professionals adept in emerging technologies such as artificial intelligence, data science, and digital infrastructure.
In a dipstick survey conducted with employers in Malaysia, 59% of respondents said that they have plans to increase their headcount.
job industry and talent growth in malaysia
The digital landscape in Malaysia has been bolstered by foreign direct investments (FDI) and a strong local demand for digital products and services. Projections indicate that the digital economy could contribute more than 25% of GDP by 2025, with e-commerce alone expected to reach a gross merchandise value of US$25 billion by 2030.
Sectors such as e-commerce, digital services and infrastructure have experienced significant direct growth. We are also seeing more companies across several sectors exploring the benefits of artificial intelligence (AI), blockchain and the Internet of Things (IoT) to find new ways of working and drive greater efficiencies.
By extension, more digital integrations are also seen in other sectors like legal, human resources, shared services, marketing as well as accounting and finance to improve accuracy and increase efficiency.
Confident in how digital technology can improve the manufacturing industries, companies continue to invest in Malaysia, which already has a strong reputation for producing electronics and automotive components.
On track with the nation’s 4IR policy, Malaysia is shifting towards high-tech manufacturing, focussing on sectors like electronics, aerospace and medical devices.
Despite the high capital costs, manufacturers are among the first adopters of robotics and automation as they have proven to increase outputs, improve quality, and reduce costs in the long run. With more use cases expected in the coming years, demand for talent with digital and data skills will surge.
There will be a noticeable shift towards high-skilled jobs, particularly in sectors such as AI, data analytics and digital services. As businesses increasingly adopt advanced technologies, the demand for skilled workers, particularly those with critical skills, will outpace supply. This situation will prompt talent to upskill for more opportunities.
In our survey, 41% of employers indicated that they anticipate the highest level of hiring activity to happen in technology next year. This is followed by 36% of respondents who expect to see significant growth in hiring within the sales and business development fields.
While the technology and manufacturing industries offer a more direct growth outlook, the prospects for the energy sector are more complex as the transition from traditional energy sources poses challenges for government, companies, and talent.
Malaysia aims to increase its renewable energy share to 20% by 2025 and 31% by 2035. However, achieving these targets requires substantial investments in alternative energy sources such as solar, wind and hydropower. The initial costs associated with grid infrastructure integration, storage solutions and land acquisition remain significant barriers for companies looking to pivot towards renewable energy.
impact of automation and digitalisation on jobs
Automation and digital transformation will significantly reshape job roles across almost all sectors in Malaysia.
According to our 2024 Employer Brand Research, 45% of respondents in Malaysia said that AI has already impacted their jobs at some levels. Of these respondents, only 6% feel negatively about the impact of AI on job satisfaction.
However, our research also found that 34% of Malaysians have never used AI at work. Without early exposure to AI, the current workforce may not be adequately equipped or confident enough to meet different expectations in the future. A report by MDEC indicated that 70% of new job openings in 2024 will require digital skills, yet only 30% of the current workforce is equipped with these competencies.
Our survey reveals that 56% of employers are grappling with a shortage of talent possessing the necessary skills for their organisations. In response to this challenge, 52% of these employers plan to increase their hiring budgets specifically for technical skills and roles.
To navigate this transition effectively, key areas for skill development include proficiency in data analysis, programming, and machine learning, as well as soft skills like adaptability, emotional intelligence and communication skills.
wage growth and employment support measures
Malaysia has traditionally been viewed as a low-cost labour market in Southeast Asia, but this perception is shifting as the country undergoes significant innovation and transformation post-pandemic. More companies are now prioritising the recruitment of quality talent with specialised skills.
According to our 2024 Employer Brand Research, salary and benefits remain the most important employee value proposition that Malaysians seek in an ideal employer.
In light of talent scarcity, 33% of employers plan to increase wages by 3% to 5% next year, while 28% are offering even more attractive monthly salary raises of 5% to 10%.
Additionally, our survey indicates that approximately one in three employees in Malaysia can anticipate receiving a bonus equivalent to 1 to 2 months of salary. These measures reflect a strategic effort by employers to attract and retain top talent in a dynamic job market.
download randstad malaysia’s 2025 job market and salary trends report
Our 2025 Job Market and Salary Trends report cuts through the complexity to deliver actionable insights and expert analyses from our business leaders in Malaysia. Let us help you navigate today's challenges and create new opportunities to strengthen your workforce for the future, ensuring your business doesn't just adapt — it thrives.
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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