The Banking & Financial Services sector experienced significant activity in 2024, fuelled by the resilience and growth of the Malaysian economy. The entry of new market players also disrupted the hiring landscape, intensifying the war for talent.
“Three digital banks have launched in Malaysia, with two more on the way. These institutions face greater risks than traditional banks, driving up the demand for risk management specialists,” says Emily Lim, Manager at Robert Walters Malaysia. “They are also bolstering their ranks with candidates specialising in digital products, operations and finance.”
Overall, the industry is expected to maintain investments in digital banking solutions and sustainable finance. The emphasis on sustainability and ESG criteria will also continue to influence hiring practices and workforce planning in the sector, states Raja Ahmad Muzamir, Director at Robert Walters Malaysia.
Read on to find out more about Muz and Emily’s expectations of the labour market and hiring trends for Banking & Financial Services professionals in Malaysia in 2025.
War for talent heats up
Muz believes that in 2025, banks and financial service providers will approach hiring with a heightened focus on aligning with the government’s push for more prudent and responsible financing practices.
As competition for talent becomes stiffer, employers are likely to take more deliberate steps to attract and retain skilled professionals. This may include extending counteroffers to keep existing talent and enhancing benefits like flexible work arrangements to meet employee expectations.
Regulatory needs, consumer expectations and foreign players to shape hiring
The regulatory landscape has become more complex and stricter, especially with the introduction of new frameworks from Bank Negara Malaysia (BNM), the Securities Commission and Bursa Malaysia. Investors and customers are also holding industry players to higher standards around responsible banking practices. At the same time, more foreign entities have also established new offices or based some of their operations in Malaysia as part of cost cutting measures. All of these factors shape the demand for the type of talent needed in each function.
Within the middle office, demand for professionals in regulatory compliance is on the rise as financial institutions navigate evolving regulations in governance, data privacy and ESG requirements. The transition towards sustainability in the banking sector is also driving significant demand for candidates with expertise in green financing, impact assessment, risk management, sustainable financing and corporate responsibility. Demand is also growing for insurance audit professionals as Malaysia becomes a hub for foreign insurance entities that have moved some regional roles into the country.
On the front office, Muz reveals, “In line with Malaysia’s goal of attracting foreign direct investments, we’ve noticed specific government-linked companies working to draw Singaporean and other foreign private equity firms into establishing offices here. There’s also been a rapid growth in high net worth clients and family offices here in Malaysia. These have contributed to a growing demand for private equity analysts and wealth management analysts.”
Moving into the back office, Emily foresees heightened demand for talent that can support finance regulatory reporting and digital transformation efforts, referencing the changes in the regulatory landscape and adoption of technologies like artificial intelligence (AI), machine learning, blockchain and Internet of Things (IoT) taking place across the industry.
Three digital banks have launched in Malaysia, with two more on the way. These institutions face greater risks than traditional banks, driving up the demand for risk management specialists.
The top technical skills and certifications that employers are looking for include the Certificate in Quantitative Finance (CQF), Association of Certified Anti-Money Laundering Specialists (ACAMS), proficiency in MUREX software, and accounting credentials like the Associate of Chartered Certified Accountants (ACCA) and Institute of Chartered Accountants in England and Wales (ICAEW).
Across all offices, Muz and Emily find that employers greatly value strong stakeholder management skills, as they are after talent that can communicate well, foster collaboration and resolve conflict.
Focus on workplace flexibility and EPF benefits
Candidate motivations have remained largely the same, with job movers prioritising career progression, exposure to new job scopes or experiences and salary. However, Muz and Emily point out an emerging trend of candidates accepting counteroffers from their employer. “This isn’t anything new, but more professionals now change their mind and decide to stay put due to the promise of a promotion or higher salary,” they say.
Even though the move back to full office-based operations is now increasingly the norm for financial institutions in Malaysia, most professionals still prioritise flexible and remote work arrangements. Long-term financial security and retirement savings are also top on mind for candidates. Therefore, companies should focus on workplace flexibility and enhanced EPF benefits as the key levers for attracting and retaining talent in the coming year.
It is also advisable for companies to streamline the hiring process as the labour market remains tight. Lengthy processes increase the risk of dropouts, counteroffers, or other companies winning over the candidate first.
Salary expectations go up with return to office
Most companies will offer pay bumps between 20 – 25% for job movers, with increments going up to 30% for talent with niche or in-demand skillsets.
“Candidates have higher salary expectations these days as more financial institutions enforce a return to the office,” comments Muz and Emily. “It is now common for job movers to ask for increments between 30 – 40% to make up for the reduced flexibility.”
Find out more
Request access to our 2025 Salary Survey to benchmark salaries and to find out more about key hiring trends in the Banking & Financial Services industry in Malaysia.
