Malaysian jobseekers need specialised and practical skills to secure employment, as companies place greater emphasis on digitalisation and automation. Routine roles are seeing slower growth, while demand is rising for roles that support technology-driven operations, according to the latest industry data.

Hiring trends suggest that employers are shifting away from broad qualifications and focusing more on job-ready capabilities that can deliver immediate value.

Digital And Technology Roles See Strong Hiring Growth

Jobstreet by SEEK Malaysia managing director Nicholas Lam said hiring activity has risen sharply in technology-related roles. Job postings linked to information and communications technology grew by nearly 25% year-on-year in 2025.

Demand is strongest in applied artificial intelligence, software development, cybersecurity, and data analytics. These roles support automation, data-driven decision-making, and digital infrastructure, which many companies now consider essential rather than optional.

Skills Now Outweigh Academic Qualifications

The shift towards skills-based hiring is becoming more explicit. About 36% of job advertisements now list specific skills as the main screening criteria, often giving them priority over formal academic qualifications.

This reflects a broader change in how employers assess candidates, especially for digital and technical roles where hands-on capability matters more than credentials alone.

Wage Gaps Are Widening For In-Demand Skills

As demand for specialised skills rises, wage growth is becoming more uneven. Jobstreet by SEEK data shows that while most salary increases cluster between 1% and 5%, workers with in-demand skills are seeing much higher increments. Randstad Malaysia country director Fahad Naeem said the wage gap between highly skilled and other workers is becoming more pronounced.

Mechanical and electrical professionals working on data centre projects, for example, can command pay increases of 20% to 50%. In contrast, many other professionals typically see salary growth of around 5% to 10%.

This aligns with official data from the Department of Statistics Malaysia, which shows that skilled workers earn about 72% more than low-skilled workers.

Data Centres And Digital Investment Drive Demand

The growing demand for skills is closely linked to Malaysia’s expansion in data centres, advanced manufacturing, and digital services. These sectors have benefited from increased foreign investment and rapid digital transformation.

Fahad described a multiplier effect from data centre development. For every direct job created within a data centre, an estimated 3.2 indirect jobs are generated across the wider economy, supporting roles in construction, maintenance, logistics, and professional services.

Employers Look For Hybrid Skill Sets

Beyond technical expertise, employers are increasingly seeking candidates with a mix of digital literacy and human-centric skills.

Lam said employers now prioritise hybrid skill sets that combine technical knowledge with analytical thinking, adaptability, problem-solving, communication, and project management skills. This combination is becoming the baseline for remaining competitive as artificial intelligence adoption accelerates.

Healthcare and community services are another area of strong hiring, driven by Malaysia’s ageing population and the expansion of both public and private healthcare capacity.

Workforce Research Shows AI Skills Are Becoming Everyday Tools

Separately, workforce research by recruitment platform Hiredly suggests that artificial intelligence is already embedded in daily work for most Malaysian professionals, not limited to technology roles.

The study found that AI tools are commonly used for routine tasks such as drafting content, analysing data, summarising information, and supporting customer service. This indicates that AI literacy is seen as a basic workplace skill rather than a specialist capability.

The research also points to changing performance expectations. Rather than replacing human roles, AI is often used to handle first drafts or repetitive work, allowing employees to focus on judgement, decision-making, and communication. This supports the growing demand for workers who can combine technology with human insight.

At the same time, the findings highlight rising pressure on workers to keep up with new tools, reinforcing why employers are placing greater value on adaptability and continuous learning.

Policy Changes Reinforce Digital Skills Demand

Policy decisions are also accelerating skills-based hiring. Randstad cited the mandatory e-invoicing rollout as a key driver of digitalisation across corporate and shared services functions.

As companies adapt to new compliance and reporting requirements, demand is rising for professionals who can manage digital systems alongside regulatory obligations.

Hiring Momentum Expected To Continue in 2026

Randstad expects hiring momentum to strengthen in 2026, supported by Malaysia’s position as a cost-competitive location with strong infrastructure.

The government’s New Investment Incentive Framework, expected to take effect in the first half of the year, is likely to raise compliance requirements. This could increase demand for legal and human resources professionals with cross-border experience and organisational design skills.

Despite this, employers are expected to focus more on productivity, work readiness, and skills alignment rather than rapid headcount expansion.

Youth Face Mismatch Between Expectations And Entry-Level Roles

Job prospects for young Malaysians remain uneven, even as overall hiring activity stays stable. While entry-level roles continue to be available across several sectors, employers are becoming more selective about work readiness and practical skills.

Lam noted a mismatch between the growing availability of entry-level roles and employer expectations around experience and job preparedness. Many graduates prefer hybrid or remote work arrangements, while many entry-level roles in operations, logistics, and hospitality still require on-site presence.

Workforce surveys also suggest that junior employees may be more exposed to disruption as automation handles basic tasks that were once part of entry-level roles. This places greater importance on early exposure to digital tools and practical workplace skills.

Managing expectations around starting salaries, which have a median of RM2,800, and early-career progression will be increasingly important in 2026.

Labour Market Remains Stable But Skills Matter More

Malaysia’s unemployment rate is expected to remain at around 3% this year. Further improvements are likely to depend on better skills matching and workforce mobility rather than job creation alone.

Lam said targeted efforts to bring women returning to work, older workers, and semi-skilled talent into the labour force through flexible work arrangements and reskilling programmes could support incremental gains.

As of November 2025, Malaysia’s labour force stood at 17.61 million people, up 0.2% from the previous month. Youth unemployment remained unchanged at 10.1%, though this was an improvement from a year earlier.

How the Shift Affects Jobseekers And Career Planning

For jobseekers, the message is straightforward: skills matter more than ever. Employers are placing more weight on practical abilities, while many workers are already learning to use digital tools for everyday tasks such as data analysis, content drafting, customer support, and basic automation as part of their daily jobs.

The growing wage gap shows that people with specialised and adaptable skills tend to see faster pay growth, while those in routine roles may experience slower progress. For younger workers, learning digital tools early and having realistic expectations about entry-level jobs can make a real difference over time.

Overall, the job market remains stable. However, better opportunities are linked to how well a person’s skills match what employers need, how willing they are to adapt, and how comfortable they are working with technology, rather than qualifications alone.

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