Shifting consumer preferences, geopolitical volatilities and technological advancements rocked Malaysia’s Northern Region, prompting a drop in hiring volumes in 2024.
Post-COVID consumer behaviour has shifted dramatically, leading to a noticeable decline in demand for electronics and semiconductors. As people return to outdoor activities, the consumption of electronic essentials has decreased, adversely affecting industries based in the Northern Region that are heavily reliant on these products.
The downturn in semiconductor industry, specifically, has had a knock-on effect on complementary industries, prompting major businesses in the region to downsize operations. According to Lim Lee Ling, Manager at Robert Walters Malaysia’s Northern Region, layoffs could continue into 2025 if recovery does not occur.
Ongoing geopolitical instabilities have disrupted global supply chains, with factors like political instability, trade disputes, and regional conflicts causing increased costs and longer lead times. Companies in sourcing and procurement will be particularly affected, as conflicts worsen supply chain bottlenecks.
The ongoing Israel-Hamas conflict also impacted key sectors, including microchip manufacturing and oil markets. With Israel being one of the key producers of advanced chips used extensively in tech hardware, heightened tensions have raised security concerns across the supply chain. Rising petroleum prices are complicating logistics further, leading to longer transportation timelines and increased costs as some global logistics companies cease operations.
Emerging technologies and artificial intelligence (AI) have become pivotal in shaping the recruitment landscape, with her observing that companies are ramping up adoption of advanced recruitment technologies. Sentiments around these technologies are buoyant, with many recruiters using or experimenting with generative AI and other tools. This has helped them to enhance hiring, automate job postings and resume screening, and speed up search processes.
Read on to find out more about Lee Ling’s expectations of the labour market and hiring trends for Malaysia’s Northern Region professionals in 2025.
More global, regional and contract roles
Global and regional roles will become more commonplace in the year ahead. This comes amidst trade tensions, which have prompted more companies to uproot offices that were previously based in China for the Northern Region instead. Notably, this is accompanied by a spike in Integrated Procurements Offices (IPO) in Malaysia, indicating that companies are leveraging the Northern Region’s strategic location and talent pool to continue growing their business.
“Gone are the days of traditional recruitment where companies meet candidates only when there is a vacancy,” states Lee Ling. “Now, companies take a more proactive, skills-based approach, engaging potential candidates and assessing them based on their competencies over educational credentials. This ensures a smooth pipeline of talent who fit well with what the organisation needs at any point.”
Another trend on the rise is that of contracting, which she anticipates more workers and companies will turn to in 2025. More than simply fulfilling cost-savings or interim needs, companies are relying more on contracting to find talent with specific skills needed for critical roles. At the same time, more workers will also pick up contract positions as they seek extra income to combat rising living costs.
Tech, cybersecurity and business partnering roles in demand
Hiring has been driven by niche technical roles in engineering and technology, and with the emergence of AI and the electric vehicles industry, demand isn’t letting up anytime soon. New opportunities are cropping up consistently, and companies will continue to look for talent with the relevant technical competencies in R&D engineering and manufacturing supporting such upcoming technologies.
Demand in cybersecurity has soared, with vacancies reaching a peak in 2024. Industries that face increasing risks include manufacturing, professional services and education, while others in digital assets, e-sports and AI development are already posting urgent demand for talent. This state of affairs is set to continue in 2025, especially as the market has a shortage of qualified candidates with the necessary skills.
Business partners in HR and finance will also be heavily sought after. Where they were previously seen more as supporting players, companies now understand the value of these functions as true partners, seeking out strategic advisors who can partner operational teams to steer the business towards achieving its goals. “This development has had positive effects on talent attraction, as HR and finance business partners now feel more involved, and they have a deeper sense of belonging to the business.”
Job movers now have more considerations
Troubled by persistent inflation and unpredictable market conditions, candidates are leery about switching jobs. If they do explore new job opportunities, they deliberate over each position more rigorously as they want to avoid making moves that could jeopardise their financial security and job stability. As such, company reputation weighs heavily in their decision-making process.
“It is now common for candidates to research a company’s history, culture, employee reviews and financial health to gauge whether they can see themselves staying in an organisation for an extended period of time,” divulges Lee Ling. “Organisations that have demonstrated a commitment to their employees during tough times are highly appealing, as are those that provide stability and professional development.”
She also says that attributes like trust and empowerment feature more and more in conversations around work culture. Candidates express a desire for transparency around the organisation’s policies, goals and challenges, and they value a psychologically safe culture where they can voice their concerns and share ideas without negative repercussions. Furthermore, they seek out opportunities that involve them in decision-making processes, or which grant them autonomy over their choices.
Organisations that have demonstrated a commitment to their employees during tough times are highly appealing, as are those that provide stability and professional development.
Lastly, there is still a strong preference for flexible work arrangements, even as many businesses summon employees back to the office. According to Lee Ling, some employees have shown to be reluctant to leave jobs that offer flexibility, even if a prospective opportunity comes with more competitive salary and benefits.
Well-rounded approach to talent attraction and retention
Given that candidates now have a multitude of concerns, a comprehensive approach would help companies better attract and retain their talent.
Directly addressing candidates’ focus on company reputation, she recommends that companies position themselves as an attractive place to work through stronger employer branding. Areas to highlight include work environment, leadership, a strong sense of community, and Employee Value Propositions that detail aspects of what employees can expect in return for contributing their skills and hard work. Taking it a step further, companies should aim to deliver a positive, respectful candidate experience, as candidates form impressions irrespective of recruitment outcomes.
Career development prospects are also key. “Besides a generous pay cheque at the end of the month, employees want to know if their employers support them in meeting the next step in their careers. Therefore, work out a growth plan and provide employees with the resources to achieve their goals,” advises Lee Ling.
There is now greater awareness around mental health, and with candidates prioritising work-life balance, companies will need to balance the return to office with work models that employees have come to value. Those who can foster a work environment that promotes both collaboration and flexibility will fare better at keeping employees loyal and satisfied.
Stable rise in salaries
Companies are aware that compensation remains a top pull factor for talent attraction, especially as competition for niche talents is stiff. Therefore, job movers can expect salary increments between 15 – 20%, or even more for in-demand positions. Like last year, salaries will be adjusted upwards by 4 – 7% for candidates remaining in the same organisation.
Find out more
Request access to our 2025 Salary Survey to benchmark salaries and to find out more about key hiring trends in the Northern Region industry in Malaysia.
