KUALA LUMPUR, 23 April 2025 – Malaysian employers are approaching 2025 with renewed confidence, according to the latest Hiring, Compensation & Benefits Report 2025 released by Jobstreet by SEEK. Nearly half of surveyed companies (48%) plan to expand their permanent workforce in the first half of the year, signaling strong business optimism powered by strategic hiring, competitive remuneration, and greater workplace flexibility.
The report, based on insights from 2,279 HR professionals and employers, provides a comprehensive look at Malaysia’s evolving employment landscape, highlighting trends that will shape talent strategies in the months ahead.
“Businesses are entering 2025 with cautious optimism, focusing on flexibility, competitive compensation, and strategic use of AI,” said Nicholas Lam, Managing Director at Jobstreet by SEEK Malaysia. “As AI becomes central to recruitment, businesses must ensure its adoption is inclusive and effective.”
Talent Demand Rebounds After a Year of Recalibration
While 2024 was marked by recalibration—with 39% of companies reducing their workforce—83% of employers now anticipate business expansion in 2025. The primary drivers for hiring include business growth (83%), the creation of new roles (58%), and staff replacement needs (43%).
Compensation and Benefits: Key to Winning Talent
In a highly competitive job market, employers are strengthening their talent attraction strategies through enhanced compensation and benefits:
- Over 75% awarded performance bonuses in 2024, averaging two months’ salary, up from 1.7 months.
- 77% provided salary increments in line with Malaysia’s 2.49% inflation rate.
- Many companies enhanced benefits packages with flexible working hours, additional parental leave, replacement leave, family-friendly facilities like nursing rooms, and expanded medical coverage.
AI Skills and Tools Take Center Stage
With AI reshaping hiring practices, Malaysian businesses are adapting quickly:
- 70% of employers now assess AI knowledge during hiring, though only 36% deem it a critical qualification.
- 26% of recruiters have integrated AI tools into processes like job ad creation (71%), candidate screening (59%), and assessments (54%).
- Despite these trends, 47% of companies remain cautious due to concerns over AI’s perceived lack of personalisation in recruitment.
Diversity, Equity & Inclusion (DEI) Gains Momentum
Malaysia is making steady progress in embedding DEI principles in workplaces:
- 40% of companies have formal DEI practices in place.
- Initiatives such as anti-discrimination policies (59%), unconscious bias training (53%), diversity goals (46%), and blind resume screenings (40%) are becoming more widespread.
- Encouragingly, 33% of board positions among the top 100 PLCs are now held by women, reflecting Corporate Malaysia’s growing commitment to gender diversity.
“Employers are increasingly recognising that DEI is not just a moral imperative but a strategic business advantage,” Lam added. “Yet, there is still work to be done to fully integrate these values into organisational culture.”
Strategic Recommendations for 2025
To build resilient, future-ready organisations, Jobstreet by SEEK advises employers to:
- Expand recruitment strategies to include part-time, freelance, and contract workers.
- Align salary adjustments with inflation rates and industry benchmarks.
- Enhance benefits with flexible working arrangements, mental health leave, and family support policies.
- Prioritise AI literacy and adoption, aligning with Malaysia’s National Artificial Intelligence (AI) Roadmap 2021-2025 and initiatives from HRD Corp.
- Strengthen DEI initiatives, leveraging tax incentives from Malaysia’s Budget 2025.
As Malaysia’s job market evolves in response to technological advancements and changing workforce expectations, the Hiring, Compensation & Benefits Report 2025 offers timely, actionable insights for employers seeking to thrive in a dynamic environment.
