Malaysia must accelerate the development of internal audit and governance talent to keep pace with rapid investments in artificial intelligence (AI), semiconductors and data centres, according to the Institute of Internal Auditors Malaysia (IIAM).
IIAM president Suhailah Mohamed Abdulla said corporate boards and public sector leaders must ensure governance capabilities evolve alongside the industries driving Malaysia’s economic transformation.
“In moving towards an AI Nation by 2030, the high-stakes talent race is no longer for AI developers alone, but also for IA (Internal Audit) professionals who provide critical oversight to support this growth,” she said.
The inaugural Inside Story of Internal Audit Malaysia 2026 report, jointly published by IIAM and Hays Malaysia, highlighted growing pressure on organisations to retain experienced internal auditors while equipping them with digital and analytical capabilities.
According to the report, 69.9% of audit teams already use AI or data analytics, but 81% of respondents said they require deeper training in AI-related competencies.
Meanwhile, 88% identified strategic acumen and soft skills as critical capabilities for internal audit professionals.
Talent retention also emerged as a concern. Although 75.8% of internal auditors cited competitive remuneration as a reason to remain in their roles, 63% were seeking external opportunities offering salary increases of 20% to 30%, compared with typical internal increments of 3% to 5%.
Hays Southeast Asia Regional Director Natasha Ishak said employers would need to strengthen career development, upskilling and remuneration strategies to retain governance professionals.
IIAM also highlighted Malaysia’s relatively small pool of certified internal auditors, with only 894 Certified Internal Auditors in the country.
Suhailah said expanding this talent pool would be essential to strengthening risk management, regulatory compliance and oversight as Malaysian businesses pursue increasingly complex investments and digital transformation initiatives.
