Even as the Engineering and Manufacturing sector battled challenging macroeconomic conditions, the hiring landscape held steady in 2024 with growth and changes in various parts of the industry.
“Exports were weak due to global supply chain disruptions and China’s fragile post-pandemic recovery,” recounts Aaron Low Yew Weng, Director at Robert Walters Malaysia. “However, the manufacturing sector is still projected to expand with increased tourist arrivals and spending. We’ve seen improvements in the unemployment rate, and domestic demand continues to be a driving force behind Malaysia’s Gross Domestic Product (GDP) growth this year. Companies are also making more serious commitments to sustainability and automation, adopting practices that boost efficiency and reduce their environmental footprint.”
Read on to find out more about Aaron’s expectations of the labour market and hiring trends for Engineering and Manufacturing professionals in Malaysia in 2025.
More automation, less emphasis on formal degrees in hiring
The spread of automation in the industry goes beyond operations – it is a feature in hiring that Aaron expects will become more prevalent looking ahead. “AI-driven tools will streamline hiring, automating tasks like resume screening and interview scheduling. This reduces human biases and improves overall efficiency, and it will also be particularly beneficial for hiring teams searching for candidates with niche skills,” he says.
There will also be a greater shift towards skills-based hiring practices, where companies will focus on candidates’ abilities and competencies instead of their educational credentials. Locating talent in this way allows companies to access a wider talent pool, as well as promote diversity by removing barriers for individuals without traditional educational backgrounds.
Lastly, hybrid and remote work – models that were popularised during the COVID-19 pandemic – are here to stay. Employers will continue to refine their workplace management strategies, fostering collaboration and innovation as their teams work remotely.
More jobs in digitalisation, sustainability and project management
Professionals looking to change jobs may do well to note that the industry is after talent that can help them modernise their operations and meet sustainability objectives. Skills in digitalisation, automation and Industry 4.0 technologies will be in heavy demand. Candidates with experience in sustainability initiatives and Environmental, Social and Governance (ESG) practices will also be highly sought after to meet regulatory requirements and consumer expectations.
We’ll be seeing more roles in robotics, AI and machine learning, as well as calls for engineers who can develop eco-friendly infrastructure and energy efficient systems.
Aaron also anticipates sustained demand for core engineering skills – especially in mechanical and electrical engineering – as companies need talent who can design and maintain machinery and production processes.
The most in-demand engineering roles in 2025 are automation and robotics engineers, and sustainability and green engineers. This comes on the back of a growing push towards automation, renewable energy, green technologies and sustainable practices. “We’ll be seeing more roles in robotics, AI and machine learning, as well as calls for engineers who can develop eco-friendly infrastructure and energy efficient systems,” Aaron comments.
Project managers will also be highly prized, with businesses counting on these talents to plan, coordinate and execute complex projects on time and within budget. Those who can manage multidisciplinary teams and integrate new technologies and processes will be seen as even more of an asset.
Address career development and social initiatives
“The hiring market remains competitive and candidates are actively exploring and moving into new positions,” shares Aaron. “In this candidate-driven market, we see professionals asking for hybrid work and flexible work hours, as well as opportunities to upskill themselves on advanced technologies.”
For talent attraction and retention, companies will benefit from offering clear pathways for career growth and skills development. Aaron also suggests highlighting efforts addressing issues around climate change, sustainability and other societal challenges, as candidates are often drawn to companies with values and missions that resonate with their own.
Sizable pay bumps for niche talents
Salaries are expected to increase by 15 – 25% for professionals moving into new positions in the year ahead. Those with niche skillsets may even command increments above 30%, notes Aaron.
Find out more
Request access to our 2025 Salary Survey to benchmark salaries and to find out more about key hiring trends in the Engineering and Manufacturing industry in Malaysia.
