Businesses lean more on Supply Chain & Procurement functions through global shifts

Geopolitical tensions and climate events around the world had a major impact on Malaysia’s supply chains, hiking up lead times and freight and raw material costs. Tariffs, rising trade costs and uncertainties around trade policy prompted firms to rethink their supplier bases, sourcing and inventory strategies.

All these factors created key focus areas for the Supply Chain & Procurement function in 2025. The function needed to demonstrate more strategic acumen around supplier risk management, sustainability, environmental, social and governance (ESG), compliance and regulatory knowledge.

“Within the labour market, jobs took a longer time to fill. This was especially so for mid-level positions and roles that required specialised skills,” recounts Aaron Low, Director at Robert Walters Malaysia. “Companies also invested more in upskilling and digital tools to cope with changing demands.”

Read on to find out more about the labour market and hiring trends for Malaysia’s Engineering & Manufacturing professionals in 2026.

Hiring shaped by geopolitical tensions, climate risks and trade policy shifts

Current market conditions are expected to carry over into 2026. Ongoing efforts around digital integration and sustainability will gain speed, and according to Aaron, this means that capabilities in ESG reporting, carbon management and digital supply chains are no longer a “nice to have”, but an absolute necessity.

An emergent theme in the hiring market is a growing demand for talent who can bridge the Supply Chain & Procurement function to data, enhancing capabilities in forecasting, supplier risk analytics and real-time visibility.

Meanwhile, mounting pressure around ESG metrics will influence the way companies hire procurement leads. They will be keeping an eye out for talent with a deep understanding of sustainable sourcing, carbon footprint, regulatory compliance, and ethical supply chains.

Many multinational companies are now basing their procurement or regional supply chain functions in markets like Malaysia. Therefore, the hiring market is developing a preference for professionals with regional experience, such as with cross-country logistics, cross-border regulations and multi-country sourcing.

Top roles and skills in demand

The most in-demand roles in the year ahead are key in helping businesses manage supply chain volatility, sustainability concerns and tech integration.

Strategic demand and supply planning leads will be prized for helping businesses to improve their predictive capabilities, reduce waste, avoid stockouts and optimise working capital. Meanwhile, roles in sustainable sourcing are on the rise as investors, regulators, and customers put pressure on companies to demonstrate ethical sourcing practices and emissions disclosure. Supply chain transformation managers are also in high demand as they enable the deployment of new digital tools and technologies.

Supply chains continue to face intense volatility from climate events, geopolitical disruptions and more. Therefore, employers place a premium on candidates who demonstrate adaptability, resilience, and the ability to tolerate ambiguity. New technologies and regulatory requirements have also emerged as the industry scrambles to keep up with market conditions. As such, professionals who are constantly learning and picking up skills in areas like ESG, AI, digital supply chain tools and advanced analytics are highly regarded.

“Mastering AI and data interpretation is essential, but the heart of our industry remains human judgment and supplier relationships. To stay ahead, we must elevate our negotiation and influence skills, because those are the capabilities AI can’t replicate.”

The impact of AI on job scopes

Businesses are deploying AI to automate repetitive and transactional tasks in procurement operations: routine purchase order creation, invoice matching and vendor onboarding. The technology is also upping efficiency in logistics coordination, handling tasks such as shipment scheduling, route optimisation and document processing.

Professionals who can blend digital fluency with human-centric skills can be assured that they remain in strong standing in the industry. For those who aren’t there yet, Aaron recommends learning how AI tools work and gaining data interpretation skills to translate AI insights into business decisions. The technology cannot replace buying decisions or relationship building with suppliers, so industry professionals should focus on enhancing their negotiation and influence skills.

Advice for talent attraction and retention

Candidates are still open to switching jobs if it helps them progress their careers, though this willingness is tempered by caution given current economic uncertainties.

Companies looking to hire in the year ahead should streamline the recruitment process to clinch their preferred candidates. Ways they could do this include reducing the number of rounds of interviews, being prompt in decision-making, and offering competitive compensation packages upfront.

On the retention front, employers can keep employees engaged through structured learning and development opportunities. The areas of training that professionals are most keen on are digital supply chain tools, analytics, sustainability, ESG knowledge and leadership training.

Salaries increase

Job movers can expect wages to go up by between 15 – 20%. Positions that require niche skills like sustainable sourcing, strategic demand and supply planning may see increments of 30% or more.

Professionals remaining in the same role are likely to receive annual increments ranging between 3 – 5%.

Find out more

Request access to our 2026 Salary Survey to benchmark salaries and to find out more about key hiring trends in the Engineering & Manufacturing industry in Malaysia.