Half of Malaysian Employers Want More Permanent Staff?

Close to half of Malaysian employers plan to grow their permanent staff size in the first half of the year (1H2025). This is based on a survey conducted by Jobstreet by SEEK in its latest Hiring, Compensation & Benefits Report. Jobstreet by SEEK reported that employers in Malaysia expressed confidence in the employability landscape, with 48% of surveyed companies planning to expand their permanent workforce in the first half of the year.

Some 39% of employers reduced their workforce in 2024, up from 2023 (18%) and 2022 (14%), according to the survey, which took input from 2,279 human resource (HR) professionals and employers.

In 2024, the three top permanent full-time jobs remained the same as in 2023, namely administration and HR (41% of companies that hired); accounting (33%); and sales or business development (21%). For performing staff, 2024 was a mixed year — average bonus rose to two months’ salary, up from 1.7 months in 2023. However, just 77% of employers gave employees a salary raise, down from 2023 levels (85%). Just 58% of them promoted staff, from 60% the year before.

In efforts to attract and retain talent, the report found that many employers enhanced employee benefits by introducing replacement leave and extended parental leave.

45% of employers have implemented flexible working hours and family-friendly amenities, such as nursing rooms and medical coverage, the report said.

Notably, 70% of businesses evaluated candidates’ artificial intelligence (AI) skills during hiring, with 36% considering it a critical skill. However, 47% of companies remained cautious about adopting AI due to concerns over the lack of personalisation. The report highlighted a growing emphasis on AI and digital readiness, coupled with significant progress in diversity, equity, and inclusion (DEI) initiatives, both of which are shaping the evolution of modern recruitment practices.

Looking ahead, Jobstreet by SEEK recommended businesses to diversify recruitment strategies, align salary adjustments with inflation, enhance employee benefits, prioritise AI literacy, and strengthen DEI initiatives. With tariffs coming, many companies will delay hiring or look to AI. The report does not mention concerns arising from tariffs and its repercussions.

Reference
Half of Malaysian employers want more permanent staff in 1H2025 — survey, Jazlin Zakri,

Theedgemalaysia.com, 29 April 2025