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Unveiling Malaysia’s Top Ten Talent trends for 2025

Hazel Leong
Published Date4 Days Ago

As we approach 2025, Malaysia’s workforce is poised for transformation across industries, driven by emerging trends and evolving demands. From advancing environmental, social, and governance (ESG) initiatives to addressing talent shortages in digital innovation, artificial intelligence, and cybersecurity, Malaysia is navigating a future defined by progress and resilience. These shifts are shaping not only the nation’s economic landscape but also the skills and expertise most in demand across sectors. 

In this article, we delve into the top talent trends that will define Malaysia’s workforce in the coming year.  

Whether it’s the rise of green engineering, the prioritization of employee wellbeing, or the integration of AI into business processes, these insights will provide you with a comprehensive view of the opportunities and challenges ahead.  

Read on to explore the trends driving Malaysia’s workforce forward. 

1. Engineering a greener Malaysia 

While ESG factors are influencing industries across Malaysia, no sector appears more impacted by environmental concerns than engineering. Due to its emerging market for “clean” technology, Chinese factory expansion is spreading through Southeast Asia, particularly in the electronic vehicle market. In addition, a number of government-led initiatives like the National Energy Transition Roadmap, Corporate Renewable Energy Supply Scheme, and the Corporate Green Power Program are transforming how Malaysian corporations access power. Consequently, engineering roles are evolving toward sustainable technologies, meaning that skills in renewable energy technologies, sustainable manufacturing practices, electric vehicle engineering, and green building design are increasingly in demand to help drive the expansion of sustainable infrastructure across sectors nationwide. 

2. Driving ESG Progress in Malaysia 

Though there has been some stagnation of environmental, social, and governance (ESG) application globally, Malaysia is advancing with a wide array of strong ESG guidelines, with corporate governance firmly in the crosshairs. These guidelines, building on the 2022 Enhanced Sustainability Disclosure Framework, have broad-reaching effects, including tools for assessing carbon emissions and access to green financing. As a result, industries such as finance, supply chain, and legal are integrating ESG criteria to meet these regulations and investor expectations. This trend will drive hiring for roles including ESG risk management, sustainable finance, green logistics, and ethical procurement, meaning that talent with expertise in sustainable investment management, renewable energy, green technology, and ethical decision-making is critical. In addition, legal professionals with a background in ESG compliance are particularly valuable. 

3. Malaysia: The Supply Chain innovator 

Five years ago, global supply chains appeared robust and impregnable. However, the pandemic, shifting trade dynamics, and geopolitical conflicts have exposed vulnerabilities, prompting organisations to diversify supply chain options. As a result of its dedication to sustainability, Malaysia has risen to become one of the most prominent links in the new supply chain order, as global CEOs increasingly address the concerns of establishing ESG-compliant supply bases, vendor engagements, transport and storage methods. Consequently, 2025 will see an escalation in demand for supply chain professionals who are adept in efficient resource planning, with the ultimate goal of reducing cost and wastage, while those with an established history of localising and regionalising supplier relationships will be most in demand in a shallow talent pool.  

4. Transforming business through digital innovation 

In 2024, the Malaysian government kickstarted a nationwide digital transformation drive, embarking on an innovation-led journey that is reshaping the country’s economic framework and advancing its digital economy. The government's digital verification platform, MyDigital ID, exemplifies this shift, with over one million users registered by October. The digital revolution appears to be gaining momentum, meaning that in nearly every sector, talent in this highly innovative, and at times challenging, field is highly sought after.  

In 2025, the expansion of data centres and an adoption of AI-based tools will reshape traditional processes, driving demand for professionals who can facilitate these transformations, and companies will require candidates skilled in automation, cloud computing, industrial automation, CRM systems, and e-commerce platforms. In addition, sales roles are becoming increasingly data-driven, while HR and supply chain management requires professionals with AI expertise to streamline recruitment, inventory, and supplier relations. 

5. Bridging the AI talent gap 

Tangential to this digital transformation is the widespread adoption of AI in Malaysia's workforce. Though still at the nascent stage, there is a clear desire to accelerate AI integration and data science development, dramatically altering talent demands. Though there have been attempts at a governmental level to develop talent by way of the Digital Economy Blueprint, Malaysia currently faces the highest rise in big data analytics vacancies in Southeast Asia. This talent shortage is most keenly felt by small and medium-sized enterprises (SMEs), a key component of Malaysia’s economy, meaning that individuals who are adept at data science, machine learning, and big data management are required to transform industries like banking, insurance, and marketing. Meanwhile, insurance and finance sectors require data scientists who can provide AI-driven insights for risk analysis and investment strategies, further squeezing the already tight talent market. 

6. Navigating the Cybersecurity compliance landscape 

A consequence of this ascendant digital, data, and AI revolution is that a range of new regulations are required to safeguard against misuse and corruption. Cyber-attacks have become increasingly frequent and complex, leading to the implementation of The Cyber Security Act 2024. A legal framework that addresses the need to protect Malaysia’s critical information infrastructure, it has led to an augmentation in the necessity for cybersecurity talent, with an estimated 30,000 cybersecurity professionals needed by 2030 (1). This desire for candidates to protect digital platforms is most keenly felt in banking, insurance, and technology, where regulatory and compliance talent are paramount. In addition, legal and HR professionals are increasingly required to focus on navigating digital compliance regulations. 

7. Remote Work: New skills for a new era 

In 2024, some two-thirds of Malaysia’s workforce reported that they were burnt out, with Millennials and Gen Z employees hit hardest (2). Consequently, there is an urgent need to enhance workplace wellness and mental health support initiatives to avoid further injury to staff mental health. One resolution, as requested by close to ninety per cent of employees (2), is working remotely at least once a week, though many employers continue to raise concerns over efficiency. To alleviate both talent burnout and employer misgivings, 2025 will see a demand for HR management staff skilled in virtual team management and digital collaboration tools, particularly in the technology and supply chain management sectors. Furthermore, a candidate’s ability to prove accountability when working remotely will become an increasing consideration in onboarding procedures. 

8. Prioritising employee wellbeing 

Of course, remote working is not a silver bullet for safeguarding a company’s workforce’s mental wellbeing, so Malaysian companies in 2025 will be actively working on work environments that are more supportive of mental health. Reports show that cases of depression doubled in Malysia between 2019 and 2023 (3) and almost one-third of workers suffer from poor mental health (4), meaning it is imperative that companies take these concerns seriously. Unfortunately, a stigma around mental health remains, and sufferers report not being understood, facing intrusive questioning, or being castigated by employers. However, as conservative estimates put loss of GDP due to mentally drained employees at 1 per cent (3), more organisations will be implementing robust mental health policies. This will include recruiting for HR and emotional wellbeing specialists, while data analysists are also required for assessing employee surveys and feedback for stress indicators and trends affecting mental health. 

 

9. Championing inclusion in the workplace 

2024 saw continued interest and investment in diversity, equity and inclusion strategies and actions – from both employees and employers. In a recent Hays survey, 41 per cent of Malaysians have felt that their career advancement had been limited by their personal diversity factors; the highest we surveyed in Asia. Additionally, when we drilled down to people who were ethnically underrepresented in their companies, that number rose to a staggering 67 per cent. 

Inclusive action was also seen to be beneficial by working professionals, with 77 per cent saying they would be more engaged and participative at work if made to feel included and equitably treated; also the highest surveyed in Asia. A further 76 per cent were more likely to stay in organisations who had their inclusive well-being in mind. Organisations are responding by embedding inclusive processes and practices such as fixed interview processes, objective and transparent promotion processes and clearly communicated goals that senior leadership visibly support to drive inclusive practices in their companies. 

This has seen an increase in desire for both HR professionals with DE&I implementation experience and C-suite executives who have a proven track record of driving inclusive cultures.  

10. Driving innovation in Biotech and Health 

Looking ahead to 2030, Malaysia is aiming for a bio-innovation breakthrough to position biotechnology as a key driver of its national economy. Conceived to develop Malaysia into a progressive and sustainable bio-innovation nation, the government’s National Biotechnology Policy 2.0 aims to encourage technological advancement for the common good, utilising programmes that target all areas of society. This strategy recognises the necessity for advanced technology integration and digital solutions for augmenting healthcare accessibility, even in the most remote areas of the nation. Boosted by increased investment from international biotech companies within a number of sectors – though primarily health –  there is a push to locate talent skilled in health informatics, bioinformatics, epidemiology, and digital health system management. In addition, the integration of AI in healthcare is creating opportunities for data scientists and healthcare professionals specialising in patient data analysis and research. 

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