Malaysia’s job market is bouncing with renewed confidence. According to the Jobstreet by SEEK Hiring, Compensation & Benefits Report 2025, nearly half (48%) of companies plan to expand their permanent workforce in the first half of the year. Business growth, the creation of new roles, and workforce replacements are the key drivers behind this hiring optimism.
The study, based on insights from 2,279 HR professionals and employers, offers a timely look into how companies are evolving to meet the demands of a modern workforce. As businesses adjust after a year of recalibration in 2024, they’re now doubling down on flexible work policies, fair compensation, and AI integration in recruitment.
What’s Driving Hiring in 2025?
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Hiring intentions are on the rise, with 83% of companies planning business expansion in 2025. While 2024 saw right sizing and cautious spending, 2025 brings a more optimistic outlook. Employers are focusing on long-term growth, strategic talent acquisition, and modern workplace upgrades that support employee wellbeing.
But hiring today isn’t just about filling roles. Companies are looking for AI-literate talent, offering more family-friendly benefits, and embracing flexible work styles to stay competitive.
Pay, Perks, and Flexibility Matter More Than Ever
Pay continues to be a powerful tool for attracting top talent. Over 75% of employers offered performance bonuses in 2024, averaging two months’ salary a notable increase from the year before. Salary increments were also widespread (77%) keeping pace with Malaysia’s 2.49% inflation rate.
On top of that, companies are enhancing benefits to keep employees engaged and loyal. Perks like replacement leave, extra parental leave, flexible hours, and even nursing rooms and family medical coverage are becoming standard in many workplaces. Mental health leave and remote work options are also gaining traction.
AI Is Reshaping Hiring, But It’s Still Evolving
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As AI reshapes industries, it’s also transforming how companies recruit. The report shows that 70% of Malaysian employers now assess AI capabilities during hiring, though only 36% consider it a top priority showing a gap between adoption and full confidence.
AI tools are already used in job ad creation (71%), candidate screening (59%), and assessments (54%). But concerns about impersonal interactions mean 47% of businesses are still cautious about AI’s role. Balancing technology and human touch is key.
DEI Gains Ground Across Malaysia’s Workplaces
Diversity, Equity & Inclusion (DEI) is gaining traction, thanks to efforts like the CEO Action Network’s DEI Guide and the 30% Club’s push for board-level representation. As of January 2025, 33% of board members in Malaysia’s top 100 PLCs are women, a major milestone.
In the workplace, more companies are rolling out anti-discrimination policies, unconscious bias training, and blind resume screenings. Though only 40% have formal DEI frameworks, the momentum is growing fast.
Strategic Moves for Employers in 2025
To stay ahead in a competitive talent landscape, Jobstreet by SEEK recommends that companies:
- Broaden hiring to include freelancers, part-timers, and contractors.
- Align pay strategies with inflation and industry standards.
- Strengthen flexible work, family support, and mental health policies.
- Increase AI literacy across teams using resources like SEEK’s Decoding Global Talent report.
- Leverage Malaysia’s Budget 2025 tax incentives to support DEI and women returning to the workforce.
Building Future-Ready Workplaces in Malaysia
2025 is shaping up to be a pivotal year for Malaysian employers. With fresh optimism, evolving workforce needs, and growing digital maturity, companies must adapt quickly to stay relevant. The Jobstreet by SEEK Hiring, Compensation & Benefits Report 2025 equips employers with essential insights to attract talent, embrace technology, and build more inclusive, future-ready organizations.
From compensation to culture, the future of work in Malaysia is here and it’s more flexible, digital, and diverse than ever before.
