Malaysia, 3 March 2025 – Insights from the 2025 Hays Asia Salary Guide reveal that three in five organisations in Malaysia experienced ‘moderate to extreme’ skill shortages, with hiring managers keen on increasing headcount to secure necessary talent. 

The survey conducted by Hays across six locations including Malaysia, China, Hong Kong SAR, Japan, Singapore and Thailand in late 2024 gathered insights from 3,670 hiring managers regarding skill shortages they faced within their organisations. Respondents were also queried about reasons related to skill shortages, positions that were difficult to fill and anticipated changes in headcount in 2025. 

In Asia: Skill shortages due to high competition from other employers

62 per cent of hiring managers in Asia admitted to encountering ‘moderate to extreme’ skill shortages in 2024, with an additional 26 per cent facing minor skill shortages. When asked about the main causes of these shortages, 47 per cent attributed it to ‘competition from other employers’. Additionally, 33 per cent considered ‘pay levels’ to be the main contributing factor, while 27 per cent cited a ‘lack of progression opportunities’. 

When examining the types of positions organisations were struggling to fill, intermediate-level roles were particularly challenging (55 per cent), followed by management positions (37 per cent), entry/junior-level roles (20 per cent), C-Suite positions (13 per cent), and director roles (12 per cent). In response to these findings, 33 per cent of hiring managers indicated that ‘employee retention’ was a key HR investment focus for 2024 and 2025, while 27 per cent were focused on ‘employee recruitment’. 

Malaysia: Increased hiring to fill gaps

Hiring managers in Malaysia were no exception, with 64 per cent facing similar levels of talent deficits, just below Thailand (71 per cent) and Japan (71 per cent). Additionally, 54 per cent of organisations cited 'competition from other employers' as a key contributor to skill shortages, the highest percentage in Asia. 

"49 per cent of organisations in Malaysia are looking to increase their headcount in 2025," said Natasha Ishak, Regional Director at Hays Malaysia. "Intentions to hire this year surpass those in 2024, where only 43 per cent of organisations saw an increase in headcount. Additionally, 42 per cent of hiring managers are focusing on employee retention this year to secure critical talent within the organisation." 

45 per cent of hiring managers believed pay levels were a major contributor to skill shortages. This aligns with findings that 56 per cent of professionals in Malaysia are planning to change jobs this year for better salary and/or benefits packages. 

"Intermediate-level roles were found to be the hardest to fill by a large margin, with 63 per cent of hiring managers in Malaysia indicating difficulty filling such roles compared to 39 per cent for management-level roles and 19 per cent for entry-level roles,” said Natasha. 

Change adaptation is key

When asked which soft skills were most in demand by organisations in Malaysia, the ‘ability to adopt and change’ and ‘communication and interpersonal skills’ tied for top place at 38 per cent. This was followed by ‘critical thinking skills’ (34 per cent) and the ‘ability to learn and upskill’ (33 per cent). 

"Employers in Malaysia are increasingly valuing adaptability and strong communication skills. In today’s rapidly changing work environment, these skills are essential for navigating new challenges and driving organisational success. Professionals who can demonstrate these abilities will be well-positioned to thrive in their careers," said Natasha. 

A copy of the 2025 Hays Asia Salary Guide is available here.

For more information contact:

Sonel Singh, Head of Marketing, Hays Southeast Asia
T: +60 3 7890 6351
E: sonel.singh@hays.com.my