Malaysia’s labour market is undergoing a significant transformation as the country accelerates its transition towards a high-value, knowledge-driven economy, intensifying demand for specialised digital and AI-related skills while deepening talent scarcity across key sectors, according to Randstad Malaysia.
The findings are outlined in Randstad Malaysia’s newly launched 2026 Market Outlook and Salary Guide Report, which draws on insights from its 2025 Talent Outlook Expectations Study involving 982 respondents nationwide. The annual report analyses talent mobility trends, in-demand skills and salary benchmarks across nine major industries, covering more than 500 job roles.
Randstad Malaysia Country Director Fahad Naeem said the pace of economic and digital transformation is forcing employers to rethink traditional talent strategies.
“Malaysia’s ambition to evolve into a high-value economy is challenging employers to rethink their talent strategies. The rapid pace of growth has driven strong demand for highly technical and specialised skills, resulting in acute talent scarcity, particularly in roles shaped by digital transformation,” he said.
Salary expectations and rising mobility
The report points to an increasingly confident workforce entering 2026. About 22% of respondents expect salary increments of between 5% and 10%, while another 17% anticipate pay rises of 4% to 5%, reflecting optimism around economic performance.
Bonuses also remain a key expectation, with one-third of respondents expecting a one-month bonus, 26% anticipating two months, and 18% looking forward to a three-month payout.
However, pay dissatisfaction could drive significant job movement. The study found that 52% of respondents would consider changing jobs in 2026 if they are unhappy with their salary increase, bonus, or both, reinforcing salary and benefits as the most critical employee value proposition.
“Salary variations differ widely by industry and depend heavily on supply-demand dynamics for specialised skills. In sectors facing urgent shortages, higher pay may be offered, yet mobility can still be constrained, highlighting the need for agile and flexible workforce strategies,” Naeem added.
Nine key sectors under pressure
The report identifies nine industries as pivotal to Malaysia’s economic growth in 2026, all facing varying degrees of skills shortages:
- Accounting & Finance
- Construction & Property
- Human Resources
- Legal
- Life Sciences & Healthcare
- Manufacturing
- Sales & Marketing
- Shared Services
- Technology
While the intensity of shortages differs, all sectors share a growing need for adaptable talent and innovative workforce management approaches.
Flexible work and contract roles gain traction
To maintain resilience and respond quickly to market demands, more employers are embracing flexible workforce models. Contract roles, once seen as a fallback option, are increasingly viewed as strategic solutions, particularly in project-driven sectors such as technology, shared services and construction.
The survey shows that 27% of Malaysian job seekers are open to contract roles, citing opportunities for faster career development, broader exposure and accelerated learning.
Gen Z seen as both challenge and solution
Against the backdrop of an ageing workforce, organisations are increasingly turning to Gen Z to address talent shortages and build long-term succession pipelines. While skills mismatches between academic training and workplace needs remain a challenge, the report stresses the importance of structured training, mentorship and hands-on learning.
Currently, 60% of respondents attribute their skills development to on-the-job experience, while 54% rely on formal corporate training programmes.
AI reshaping the workplace
AI adoption is rapidly reshaping Malaysia’s talent landscape. The report found that 78% of employees already use generative AI tools for tasks such as content creation, email drafting and reporting, while 51% use AI specifically for learning and development.
However, 13% of respondents cited corporate restrictions on AI usage, potentially creating skills gaps and pushing talent towards employers that offer greater exposure to AI-driven innovation.
“As AI adoption accelerates, employers must ensure their workforce is equipped with the analytical, logical and digital skills needed to collaborate effectively with these technologies,” Naeem said.
Staying competitive into 2026
Looking ahead, Randstad believes employers that invest in specialised skills development, flexible workforce solutions and AI-enabled learning will be better positioned to attract and retain talent.
“Our insights show that Malaysian employers can secure long-term competitiveness by adopting holistic and agile talent management strategies. Embracing AI, developing future-ready skills and offering flexibility will be critical to navigating the opportunities and challenges of 2026,” Naeem concluded.
The 2026 Market Outlook and Salary Guide Report is intended to serve as a strategic reference for employers refining talent strategies, as well as professionals navigating career and salary decisions in an increasingly competitive marke
