We recently joined Hung Lee of Recruiting Brainfood for an insightful panel discussion on hiring in Malaysia, alongside Rodica Belocosov, Jasvin Cheema, Ian Turnpenny, and Sam Baxendale. The conversation highlighted key trends, challenges, and opportunities in Malaysia’s evolving job market. Here are some of the key takeaways, backed by relevant market data.

Malaysia’s Hiring Landscape: What’s Changing?

Malaysia remains a cost-effective hiring market, especially for junior to mid-level roles, where salaries are 30-50% lower than in Singapore. However, for senior-level positions, compensation can be unexpectedly high, often due to competition with Singaporean firms, which offer 50-80% higher salaries for top-tier professionals.

Another trend is the increasing return of Malaysian professionals as the cost of living in Singapore continues to rise (+4.7% YoY in 2023-2024). Many startups are also setting up operational hubs in Malaysia, benefiting from lower operational costs while maintaining Singapore as a financial and legal base.

For companies planning to hire in Malaysia, here are three critical factors to consider:

✅ Notice Periods Can Be Lengthy

Hiring cycles in Malaysia tend to be longer than in other markets, largely due to extended notice periods of up to three months.

• Only 20-25% of candidates are available within 30 days, compared to 40-50% in Singapore and Hong Kong.
• If a buyout is not an option, companies must keep candidates engaged throughout their notice period.

Research shows that over 40% of candidates who accept offers but experience a lack of engagement from their new employer during their notice period may reconsider or withdraw. Regular check-ins and preboarding activities help mitigate this risk.

✅ Salary Progression Is a Key Retention Driver

While starting salaries in Malaysia tend to be lower than other regional markets, salary progression plays a major role in employee retention.

• Average annual salary increments range from 6-10%, but in high-demand fields like technology, fintech, and digital banking, raises can reach 20% per year.
• A 2024 talent survey found that 60% of Malaysian employees would leave a job within two years if they do not receive a meaningful pay increase.

Companies must budget for structured salary progression to remain competitive. Offering clear career growth pathways alongside consistent pay reviews is essential for retaining top talent.

✅ Networking & Relationships Drive Hiring Success

Malaysia’s hiring landscape, particularly in Kuala Lumpur, is highly relationship-driven.

• Over 70% of senior hires are made through referrals or professional connections, compared to 50-55% in Singapore and Hong Kong.
• In sectors like finance, technology, and consulting, trusted industry relationships significantly influence hiring decisions.

For companies looking to establish a strong talent pipeline, active participation in networking events, employer branding, and direct community engagement can be game-changers.

Final Thoughts

Malaysia presents strong hiring opportunities, but success depends on understanding market salary expectations, hiring timelines, and the power of relationship-driven recruitment.

A big thank you to Hung Lee for leading such a great discussion! For a deeper dive into the topic, check out the full session:

https://lnkd.in/gxps9pUu

What’s been your biggest learning when hiring in Malaysia?