Malaysian Employers Enter 2025 with Optimism, Focus on Expansion, AI, and DEI: Jobstreet by SEEK Report

Employers in Malaysia are heading into 2025 with renewed confidence, according to Jobstreet by SEEK’s Hiring, Compensation & Benefits Report 2025. Nearly half of surveyed companies (48%) plan to expand their permanent workforce in the first half of the year, driven by business expansion (83%), the creation of new roles (58%), and the replacement of outgoing staff (43%).

Compiled from insights from 2,279 HR professionals and employers, the report serves as a comprehensive resource for business leaders, HR practitioners, and policymakers navigating the evolving employment landscape.

“Businesses are approaching 2025 with cautious optimism, focusing heavily on flexibility, competitive compensation, and the strategic use of AI,” said Nicholas Lam, Managing Director of Jobstreet by SEEK Malaysia. “As AI becomes integral to recruitment, businesses must adopt it thoughtfully to ensure inclusivity and effectiveness.”

While optimism is high for 2025, with 83% of companies planning business expansion, 2024 was a year of recalibration. Although 74% of respondents perceived the job market as active, 39% of companies reduced their workforce, with permanent full-time roles most affected. These retrenchments and strategic adjustments point to a cautiously optimistic hiring landscape moving forward.

Compensation and Benefits Remain Central to Talent Attraction

In today’s competitive job market, attractive remuneration packages are crucial for attracting, retaining, and motivating top talent. Over 75% of companies awarded performance bonuses in 2024, averaging two months’ salary — an increase from 1.7 months previously. Additionally, 77% of businesses implemented salary increments, keeping pace with Malaysia’s 2.49% inflation rate.

Companies are also enhancing benefits offerings, introducing perks such as replacement leave and additional parental leave. Notably, 45% of employers now offer flexible working hours and family-friendly amenities, including nursing rooms and expanded medical coverage.

Accelerating AI and Digital Readiness

As AI reshapes recruitment, Malaysian employers are rapidly adapting. Today, 70% of businesses assess candidates’ AI skills during hiring, with 36% considering AI proficiency a critical competency. Meanwhile, 26% of recruiters use AI tools for functions like job ad creation (71%), candidate screening (59%), and assessments (54%).

However, 47% of businesses remain hesitant to fully embrace AI, citing concerns over the lack of personalisation. This highlights the need for balanced AI integration that supports, rather than replaces, the human touch in hiring.

Momentum Builds Around Diversity, Equity, and Inclusion (DEI)

DEI initiatives are gaining traction in Malaysia, reflecting a broader trend across Asia. In 2024, the CEO Action Network launched a DEI Implementation Guide at Bursa Malaysia, reinforcing national efforts toward inclusive workplaces.

Progress is also evident at the leadership level: women now hold 33% of board positions among Malaysia’s top 100 PLCs, and 27.6% across all PLCs as of January 2025.

Beyond leadership, more companies are embedding DEI into their culture. While 40% of companies have formal DEI practices, adoption is growing through measures such as anti-discrimination policies (59%), unconscious bias training (53%), clear diversity goals (46%), and blind resume screenings (40%).

“Employers in Malaysia are increasingly recognising DEI not just as a moral responsibility but also as a strategic business advantage,” Lam said. “However, more work is needed to fully embed these principles across organisational cultures.”

Strategic Recommendations for Employers in 2025

To remain competitive, Jobstreet by SEEK recommends that employers:

• Broaden recruitment strategies to include part-time, contractual, or freelance workers.
• Align salary adjustments with inflation and industry benchmarks, leveraging insights from SEEK’s Talent Attraction Lab study.
• Enhance employee benefits, including flexible working arrangements, mental health leave, and family-friendly policies.
• Prioritise AI literacy, referencing SEEK’s Decoding Global Talent 2024 report and Malaysia’s National Artificial Intelligence (AI) Roadmap 2021-2025.
• Strengthen DEI practices, capitalising on tax incentives outlined in Malaysia’s Budget 2025 supporting diversity, caregiving responsibilities, and women returning to the workforce.

As businesses navigate an increasingly digital and dynamic landscape, the Hiring, Compensation & Benefits Report 2025 provides timely guidance for building resilient, future-ready organisations.