KUALA LUMPUR (Feb 4): Malaysia’s jobseekers will increasingly require specialised skills to secure employment, as more companies look for capabilities that support digitalisation and automation while routine roles face slower growth or decline, according to the latest industry data.

According to Jobstreet by SEEK Malaysia managing director Nicholas Lam, hiring activity in the technology and digital roles has jumped, with information and communications technology-related postings growing nearly 25% year-on-year in 2025. 

This demand is heavily concentrated in applied artificial intelligence (AI), software development, cybersecurity, and data analytics.

The shift is so profound that 36% of job advertisements now explicitly list specific skill requirements as the primary filter, often prioritising these over formal academic qualifications, Lam revealed.  

The trend trickles down to wage growth, with the skill premium widening while other increments moderate towards the 1%-5% cluster, according to Jobstreet by Seek data.

The dispersion is sharpening, said Randstad Malaysia country director Fahad Naeem. 

For example, mechanical and electrical professionals working on data centre projects can command pay increases of between 20% and 50%, according to Randstad Malaysia, where other professionals typically expect salary increments of 5%-10%. 

This is in line with official data where skilled workers earn 72% more than their low-skilled counterparts, according to the Department of Statistics Malaysia (DOSM). 

The transition follows a surge in demand for talent in data centres, advanced manufacturing and digital roles driven by rapid digital transformation and increased foreign investments.

This trend is echoed by Fahad, who highlighted a "multiplier effect" driven by the nation’s digital infrastructure boom, according to Randstad data. For every single job created within a data centre, an estimated 3.2 indirect jobs are generated across the wider economy, Fahad said.

Data from Jobstreet by SEEK also highlighted that employers prioritise this "hybrid skill set" — combining technical literacy required in the digital space with human-centric skills (analytical thinking, adaptability, problem solving, communication and project management) — as the baseline for remaining competitive as AI adoption and digitalisation accelerate, said Lam.

Jobstreet by Seek also observed the strong hiring drive for healthcare and community services, underpinned by the ageing population and expanded public and private healthcare capacity.

Policy decisions have also reinforced the shift towards skills-driven hiring, according to Randstad, citing the mandatory e-invoicing roll-out as an example of a significant driver of digitalisation in corporate and shared services.

In terms of hiring, Fahad said the momentum is expected to strengthen in 2026, supported by Malaysia’s position as a cost-competitive and strong infrastructure-ready destination for global firms.

The government's New Investment Incentive Framework, which is expected to take effect in the first half of this year, is also set to heighten compliance requirements, said Ranstad. 

Hence, it anticipates increased demand for legal and human resources professionals with cross-border and organisational design experience, as companies adapt operating models to new requirements.

Employers will prioritise productivity, work readiness and skills alignment over aggressive headcount growth, according to Jobstreet by SEEK.

For the youth, prospects are uneven amid a mismatch between rising demand for entry-level roles and the level of experience of graduates expected by employers. 

"Many graduates prefer hybrid or remote roles, while most entry-level jobs — especially in operations, logistics and hospitality — still require on-site presence," Lam added.

"Managing expectations around job readiness, starting salaries (median RM2,800), and early-career progression will be critical in 2026," Lam said. 

With Malaysia's unemployment rate seen sustained at 3% this year, further improvements will depend more on skills matching and workforce mobility, according to Jobstreet by SEEK.

“Targeted efforts to integrate women returnees, older workers and semi-skilled talent through flexible work models and reskilling programmes could support marginal improvements,” said Lam.

The labour force trended upwards in November 2025, registering a month-on-month increase of 0.2% to 17.61 million persons, from 17.58 million persons. The participation rate of 70.9% was unchanged from October. 

Compared to one year earlier, the labour force increased by 2.8%, equivalent to an additional 483,400 persons (November 2024: 17.13 million persons). Consequently, the labour force participation rate increased by 0.4% from 70.5% recorded in November 2024.

Youth unemployment remained unchanged in November, with the jobless rate for those aged 15-24 maintained at 10.1%, equivalent to 297,900 unemployed youth, compared to 297,600 in October. Year-on-year, the youth unemployment had improved from 300,000 or 10.4%, according to DOSM.