Contracting gains momentum in Malaysia as organisations turn to specialist expertise to meet rising skill demands

Malaysia, 18 June 2026 - The latest findings from Hays’ The Evolving Role of Contracting in Asia report highlight how contracting is gaining traction in Malaysia as organisations seek more flexible ways to access skills, manage costs and deliver business outcomes. 

Drawing on responses from 1,930 contractors and hiring managers across Asia and supplemented with findings from the 2026 Hays Asia Salary Guide, the report provides a comprehensive view of how contracting is evolving and the role it plays in addressing skill shortages and supporting workforce strategy. 

 

Contracting use set to rise further 

Contracting adoption is gaining pace in Malaysia, with 49 per cent of organisations considering hiring contractors today. This reflects a growing shift in how organisations approach workforce planning, particularly as they look for faster and more flexible ways to access talent. 

Hays Malaysia Contractor Demand in Malaysia:Past and Outlook

Recent trends also point to sustained growth in demand. While 31 per cent of organisations have increased their use of contractors over the past 12 months, this is expected to rise further, with 34 per cent planning to increase contractor use in the next 12 months. 

This demand is being driven by several factors. Over half of organisations (53 per cent) seek access to specific skills for one-off projects, while 45 per cent desire flexibility of staffing costs. 39 per cent are turning to contractors to meet peaks in demand. 

 

Competition for contractors is heating up 

As adoption of contracting continues to grow, competition for talent is intensifying. In Malaysia, 58 per cent of organisations cite the limited availability of suitable candidates as the biggest barrier to securing top contract talent. 

This reflects a broader environment where demand for experienced professionals continues to outpace supply, particularly for specialist and high-impact roles. As a result, organisations are under increasing pressure to act quickly and differentiate their approach to attracting contractors. 

 

Benefits emerging as a key differentiator 

As contracting becomes more established, contractor expectations are also evolving. Contractors in Malaysia highlight the importance of benefits such as health insurance, paid time off and travel/expense reimbursements as key components of their overall proposition. 

However, there remains a gap between expectations and what is currently offered, with only 39 per cent of contractors receiving any form of non-monetary benefits. This presents a clear opportunity for organisations to strengthen their contractor value proposition beyond pay alone. 

 

Tom Osborne, Managing Director for Hays Southeast Asia, comments: 

“Organisations in Malaysia are placing greater emphasis on accessing specialist expertise, and contracting is playing a key role in enabling this. Contractors bring focused, in-demand skills that can be deployed quickly, particularly for one-off or high-impact projects where specific capabilities are needed.” 

“However, as more businesses turn to contractors to meet these needs, competition for skilled professionals is intensifying, requiring organisations to be more deliberate in how they attract and secure talent.” 

 

 

Contact 

Christy Lee, Marketing Executive, Southeast Asia, Hays  
T: +603 5870 4987
E: christy.lee@hays.com.my 

 

About Hays 

Hays plc (the "Group") is the world’s leading specialist in recruitment and workforce solutions. The Group is the expert at recruiting qualified, professional, and skilled people worldwide, being the market leader in the UK, Germany, and Australia and one of the market leaders in Continental Europe, Latin America, and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As of 31 December 2025, the Group employed over 9,100 staff operating from 198 offices in 30 countries. For the year ended 31 December 2025: 

  • the Group reported net fees of £453.3 million and operating profit of £20.1 million.
  • the Group placed around 21,000 candidates into permanent jobs and around 53,000 people into temporary roles. 
  • 12% of Group net fees were generated in Australia & New Zealand, 32% in Germany, 20% in United Kingdom & Ireland and 36% in Rest of World (RoW).
  • the temporary placement business represented 64% of net fees and the permanent placement business represented 36% of net fees.
  • Technology is the Group’s largest division, with 26% of net fees, while Accountancy & Finance (15%), Construction & Property (12%), and Engineering (10%) are the next largest.
  • Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, China, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, the Netherlands, New Zealand, Poland, Portugal, Romania, Singapore, Spain, Sweden, Switzerland, UAE, the UK, and the USA.