Jobstreet Survey: Half of Malaysian Employers Set to Increase Permanent Workforce in 2025

According to Jobstreet's latest 2025 Hiring, Compensation, and Benefits Report, nearly half (48%) of Malaysian employers plan to expand their permanent workforce in the first half of the year. This growth is largely driven by business expansion (83%), the introduction of new roles (58%), and the replacement of outgoing staff (43%).

The survey, which gathered insights from 2,279 HR professionals, reveals that businesses are entering 2025 with cautious optimism. Key focus areas for employers include enhancing flexibility, offering competitive compensation, and integrating AI into recruitment processes.

While most companies are optimistic about growth, 39% reduced their workforce in 2024, with permanent full-time roles being most impacted. Despite this, 74% of respondents still view the job market as active, signaling a shift towards more strategic hiring practices.

Jobstreet’s report also highlights that companies are providing improved remuneration to attract and retain top talent. Over 75% of businesses awarded performance bonuses in 2024, averaging two months' salary, while 77% offered salary increases to keep pace with inflation.

Additionally, more companies are offering flexible work options and family-friendly policies, with 45% providing benefits like flexible hours, nursing rooms, and medical coverage. AI’s role in recruitment is growing rapidly, with 70% of companies evaluating candidates' AI knowledge as part of their hiring process.

As for diversity, equity, and inclusion (DEI), 40% of businesses now have formal DEI practices in place, with more companies embedding DEI into their culture. Jobstreet recommends that businesses expand their recruitment strategies and prioritize AI literacy, as well as take advantage of incentives in Malaysia’s 2025 budget to strengthen DEI efforts.