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.
labour trends in malaysia’s manufacturing sector
The manufacturing industry is enjoying strong growth in Malaysia, driven by Western companies looking to diversify supply chains, Chinese companies adopting a China Plus One strategy, and strong government investment support.
High-tech industries such as semiconductors and electric vehicle manufacturing are attracting significant investment, and competition for talent in skilled roles is fierce. In part as a response to talent shortages, companies are increasingly focussing on process optimisation and automation.
growth in semiconductors create skill shortage
The semiconductor industry looks set for growth in 2025 after overcoming some of the supply chain issues that have been holding it back. Penang in particular looks set to benefit from this growth, and is currently upgrading its electricity and water supply to cope with expected future demand.
Malaysia is a particularly attractive destination for Chinese companies looking to follow the China Plus One strategy due to relatively lower costs and strong Chinese language skills. In a single deal last year three Chinese companies agreed to invest USD100 million in the state, for example.
This is good news for candidates but less so for employers, who face huge competition for engineers in particular. Malaysia’s universities produce around 5,000 engineering graduates each year, but the growth in the semiconductor industry alone demands around 30,000.
We’re seeing employers partner with universities and work with industry bodies such as the Malaysia Semiconductor Industry Association to get the first choice of candidates. While the industry’s small size once meant hiring through personal connections was relatively easy, we’re also seeing increasing use of professional headhunters to fill vacancies as it grows.
electric vehicles pick up speed, driving companies to hire from adjacent industries
Electric vehicle sales in the automotive industry grew significantly in Malaysia in 2024, and that trend is likely to continue in 2025 as more Malaysians change their preferences, encouraged by government incentives. While many of those sales have gone to imports, local brands are also entering the sector, with Malaysian carmakers Proton and Perodua planning to debut their EVs in 2024.
Despite the percentage growth in EV sales, the absolute number remains small, accounting for just 3.3% of total vehicle sales in the first half of 2024, held back in part by high costs and limited charging infrastructure.
Nevertheless, the sector is seeing significant investment both from local brands and foreign carmakers, thanks in part to government support such as tax exemptions and a waiver on import duty for locally assembled EVs. Consumers are also more conscious about their carbon footprints, and are increasingly looking to reduce their energy consumption through renewable energy sources.
Much of the investment will focus on research and development and engineering, with key roles related to EV technologies, battery systems, and autonomous vehicle design in high demand.
While there is a pool of talent with EV experience in Malaysia, the growing industry means demand is starting to outstrip supply. The good news for hiring managers is that experience in industries such as electronics and semiconductor manufacturing, which are well established locally, is fairly easily transferrable. Companies who are prepared to invest time and training to close those few gaps that remain will find it much easier to find the talent they need to take advantage of the growth in this sector.
green manufacturing developments
Sustainability remains in its early stages in Malaysia, but we see two factors making it increasingly important.
First, for Malaysian companies looking to export to Europe and other Western markets, strong sustainability credentials can provide a significant competitive advantage, as in some cases they are a basic requirement to access the market. And second, as Western companies set up operations in Malaysia, they bring with them their own compliance requirements, which may lead to other local companies following suit.
One of the key areas of focus is sustainable practices in manufacturing, where companies are investing in renewable energy as well as cleaner technologies and production processes to reduce their environmental footprint.
As well as providing access to Western markets and meeting demand from increasingly eco-conscious consumers, this can also be used as part of an employer brand, enabling companies to match the values of younger candidates.
closing the skills gap during digital transformation
We’re seeing many manufacturers, particularly in the automotive, electronics, semiconductor, chemicals, and food and beverage sectors, adopting process automation to address talent shortages and improve operational efficiency and quality.
With talent scarcity, there is a clear technical skill gap as companies focus on building their workforce capabilities.
Automation in these sectors focuses on creating "equipment-centric" operations, where machinery plays a central role in driving production. Companies are also investing in further digitalisation involving machine learning and Internet of Things (IoT), process optimisation and supply chain management to ensure smoother, more efficient operations that can support growth.
A significant aspect of this shift is upskilling the existing workforce to operate upgraded systems. Companies are investing in certifications and technical training to help current employees adapt to new technologies and automation tools. This approach not only improves efficiency but also helps retain employees, particularly younger workers who are more likely to benefit from continuous learning opportunities. Some companies are even using this training to bond workers, effectively retaining them for a period in exchange for the qualification.
While automation generally reduces demand for workers, it does result in a greater need for robotics and automation specialists, as well as process optimisation roles. Candidates with these skills are highly sought after as companies look to leverage technology to stay competitive. There is still plenty of hiring for other skill sets, though we expect to see more of a focus on replacement hires rather than new positions.
hiring expectations and salary benchmarks in manufacturing
We expect these roles to be particularly in demand in 2025:
- Automation and robotics engineers
- Process engineers
- R&D and product development engineers
- Sustainability and environmental compliance officers
We expect 2025 to be a candidate-driven market, with competition in niche roles with smaller talent pools.
Candidates switching jobs can expect increments in the range of 15% to 20%, but we’re also seeing companies look to stand out through additional benefits such as transport and accommodation allowances, particularly in remote areas.
download randstad malaysia’s 2025 job market and salary trends report
Discover the latest talent insights and salary benchmarks for legal jobs, ranging from project management to quality assurance; from engineering to sustainability and more, from our 2025 Job Market Outlook and Salary guide.
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
- sales and marketing
- shared services
- technology
- contracting
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