KUALA LUMPUR: Malaysia's hiring landscape is on the cusp of transformation, driven by new policies and investments, along with advancements in infrastructure development and capacity-building, according to Robert Walters.
The global talent solutions provider noted that these changes are likely to increase competition in the labour market.
This shift is being driven by both employers and employees recalibrating their expectations and preferences in response to the evolving workplace dynamics, it added.
Robert Walters country head for Malaysia, Ai Rene Tan, said after weathering the ups and downs of a challenging global economy, Malaysia is standing on firmer economic ground.
With the Madani Budget 2025 introducing several initiatives aimed at high-value activities and economic diversification, Tan said the company anticipates seeing more high-value roles and increased digital capability requirements across various specialisations.
"These developments will play a key role in opening doors for upskilling, digital transformation, and creating job opportunities, driving demand for skilled talent," she said.
According to Robert Walters' Salary Survey 2025, a comprehensive study conducted with over 500 professionals and employers in Malaysia, the outlook for hiring in the country remains positive.
The annual survey captures the outlook of over 500 employees and employers in Malaysia, focusing on shifting market dynamics and motivators of mid- to senior-level professionals that will shape the year ahead.
The survey reveals that 55 per cent of organisations are planning to increase recruitment over the next 6 to 12 months, highlighting a growing demand for talent as businesses ramp up operations.
In contrast, 64 per cent of mid-to-senior level professionals expressed confidence about job opportunities in their respective fields, with 44 per cent of them actively looking for new roles even while employed.
Compensation also continues to be a key discussion point heading into 2025. A large majority (85 per cent) of organisations said they were likely to give salary increases next year, matching professionals' confidence in attaining a pay bump. In addition, most organisations (71 per cent) said they would boost wages between 1-5 per cent, meeting a majority of employees' expectations (61 per cent).
However, despite these alignments, the survey found that companies may be faced with candidates seeking more lucrative offers in a competitive labour market.
"63 per cent of employers find it challenging to meet candidates' expectations of higher salaries and benefits, with 41 per cent saying they had difficulty offering competitive pay and benefits to retain talent, indicating a mismatch in perspectives between organisations and professionals," it said.
While 52 per cent of professionals ranked excellent compensation and benefits as their top expectation of prospective employers, the survey revealed that professionals' considerations go deep beyond remuneration.
Aside from bonus schemes, it said professionals prioritise flexible working hours (77 per cent) as an important benefit as they seek to balance the demands of work and home.
Meanwhile, the survey added that workplace culture (35 per cent) is also important for professionals, and they value companies with open leadership and a positive working environment (42 per cent).
"As economic growth brings several shifts in the employment landscape, attracting and retaining talent have become more complex amid rising competition and changing workplace preferences.
"With Malaysia entering a transformative 2025, organisations can look forward to various growth possibilities. Yet this also means having to navigate fluid job market dynamics and shifting motivations as the world of work continues to change," added Tan.