Nearly half of Malaysian employers plan to expand permanent workforce: Jobstreet survey

The Sun

28-04-2025

PETALING JAYA: Employers in Malaysia are optimistic on recruitment, according to Jobstreet by Seek's latest Hiring, Compensation and Benefits Report 2025.
Nearly half of the surveyed companies (48%) plan to expand their permanent workforce in the first half of the year, driven by business expansion (83%), the introduction of new roles (58%) and the replacement of outgoing staff (43%).
Based on insights from 2,279 human resource (HR) professionals and employers, the Hiring, Compensation and Benefits Report 2025 is a comprehensive resource for employers, HR leaders and policymakers that helps them navigate and adapt to the evolving employment landscape.
'Businesses are approaching 2025 with cautious optimism, focusing heavily on flexibility, competitive compensation and strategic use of AI,' said Jobstreet by Seek Malaysia managing director Nicholas Lam.
'As AI becomes integral to recruitment processes, businesses must adopt it thoughtfully to ensure inclusivity and effectiveness,' he added.
While confidence remains high for 2025, with 83% of companies planning business expansion, it's important to acknowledge that 2024 was a year of recalibration for many employers. Although 74% of respondents viewed the job market as active, 39% of companies reduced their workforce, with permanent full-time roles most affected.
These retrenchments, right-sizing efforts and shifting strategies reflect a cautiously optimistic hiring landscape moving into the new year.
In a statement today, Jobstreet by Seek Malaysia said in today's competitive job market, remuneration packages remain a key lever in attracting, retaining and motivating top talent.
'Employers are providing enhanced compensation and incentives, with over 75% of companies awarding performance bonuses in 2024, averaging two months' salary – up from 1.7 months previously. Additionally, 77% of businesses gave employees salary increments, aligning with Malaysia's inflation rate at 2.49%,' it added.
It said in a bid to attract and retain talent, companies have upgraded their employee benefits packages with perks like replacement leave and additional parental leave.
Additionally, 45% of employers now offer flexible working hours and family-friendly policies and facilities, including nursing rooms and medical coverage.
The report disclosed that as AI becomes integral to modern recruitment, Malaysian employers are rapidly adapting – from assessing candidates' AI skills to deploying smart tools that optimise the hiring process. Today, 70% of Malaysian businesses evaluate candidates' AI
knowledge during the hiring process, with 36% considering it a critical skill.
Furthermore, 26% of recruiters use AI tools for tasks like job ad creation (71%), candidate screening (59%) and assessments (54%). However, 47% of businesses are hesitant to embrace AI due to the perceived lack of personalisation.
Diversity, equity and inclusion (DEI) is gaining momentum across Asia, and Malaysia is making meaningful strides. In 2024, the CEO Action Network launched a DEI Implementation Guide at Bursa Malaysia, reinforcing national efforts to build more inclusive workplaces. The 30% Club continues to drive change, with Corporate Malaysia now seeing 33% women on boards among the top 100 PLCs and 27.6% across all PLCs as of January 2025 – an encouraging sign of progress.
Beyond the boardroom, more companies are beginning to embed DEI into their workplace culture. While 40% have formal DEI practices in place, adoption is steadily growing through initiatives like anti-discrimination policies (59%), unconscious bias training (53%), clear diversity goals (46%), and blind resume screenings (40%). The momentum is building, and the direction is clear.
'Employers in Malaysia are increasingly recognising DEI not just as a moral responsibility but also as a strategic business advantage,' Lam said. 'However, there is still considerable progress needed to embed these principles deeply within organisational cultures.'
To stay competitive in the year ahead, Jobstreet by Seek encourages companies to broaden recruitment strategies to include part-time, contractual or freelance workers; align salary adjustments with inflation and industry benchmarks, based on insights from Seek's Talent Attraction Lab study; enhance employee benefits offerings with perks like flexible working arrangements, mental health leave and family-friendly policies and prioritise AI literacy, leveraging Seek's Decoding Global Talent 2024 report and initiatives under Malaysia's National Artificial Intelligence Roadmap 2021-2025 and HRD Corp initiatives besides strenthening DEI practices, leveraging tax incentives from Malaysia's Budget 2025 for measures supporting diversity, caregiving responsibilities and women returning to the workforce.