Malaysia ranks 11th globally for talent competitiveness according to Hays Global Talent Tracker

Malaysia, 23 October 2025 - New research released by Hays, the global leader in specialist recruitment and workforce solutions, reveals how Malaysia’s position in the global talent landscape is being shaped by a range of workforce and labour market factors. The report, which compares labour market performance across 35 locations, highlights both opportunities and risks in attracting, developing, and retaining skilled talent—offering valuable insights for business leaders and policymakers. 

Malaysia’s global standing: strengths and challenges

  • Malaysia ranks 11th out of 35 in global talent competitiveness, a measure of how effectively a market attracts, develops, and retains skilled workers. That ranking is better than Hong Kong SAR (14th) and Thailand (24th) but behind Singapore (4th), China (2nd) and Japan (1st). 

  • The research shows that Malaysia ranks 1st in talent value (a measure of how investment in people delivers returns) and 4th in talent market flexibility (a measure of how easily the labour market can adapt to changing business needs) among the 35 countries assessed. 

  • Malaysia (30th) is behind on talent participation—Japan (1st), Singapore (9th), Hong Kong (21st) and China (25th) all rank higher on workforce engagement and resilience. 

  • Malaysia (31st) was also outperformed on talent development by Singapore (13th), Japan (18th) and China (29th). This is in large part because those markets invest more in education and skills investment. 

“Hays’ findings show how the global landscape for talent is evolving at unprecedented speed, with countries investing strategically to build more innovative, resilient and future-ready workforces amid increasing economic uncertainty,” said Dirk Hahn, Chief Executive Officer of Hays. 

“As organisations navigate this complexity, the ability to identify and harness the right talent ecosystems will become a defining factor for long-term success.” 

“The findings reinforce there are many contributing factors to a strong workforce, and each market can and should consider that combination differently, but by understanding these trends, businesses can make smarter decisions about where to invest, grow and compete on the world stage.” 

Headwinds to future Malaysia growth

Hays’ research highlights a range of factors shaping the future of Malaysia. When reviewing the Compound Annual Growth Rate of Gross Value Added (GVA CAGR) of local domestic sectors, engineering, services and technology were identified as the fastest growing industries by 2030. 

This growth is accelerated by its cost-competitive labour, where Malaysia ranks first globally in the Talent Value pillar. “A blend of low employment costs, good English proficiency and a scalable workforce makes Malaysia a compelling destination for shared services, customer operations and regional headquarters,” said Natasha Ishak, Regional Director for Hays Malaysia. “Flexible local labour laws and prevalence of contract and freelance work greatly support businesses that seek rapid deployment and operational agility.” 

While there are clear strengths, the data also points to areas where targeted action is needed to remain competitive in attracting global talent and investment. Malaysia’s overall productivity still trails more advanced economies, attributed by disparities in education quality and regional skills readiness. 

“For Malaysia to retain its position as a top performer in agility, it will need to continue investing in education, strengthen protections for vulnerable workers, and formalise employment structures to ensure that flexibility doesn’t come at the cost of fairness.” 

“For organisations seeking cost-effective talent in Southeast Asia, Malaysia offers a strong value proposition. Long-term success will depend on how effectively it transitions from a cost-led model to a capability-driven ecosystem.” 

The Hays Global Talent Tracker was developed in partnership with Oxford Economics in early 2025, analysing labour market data across 35 locations. The research benchmarks national workforces using a composite index built from five pillars – talent value, participation, development, flexibility, and innovation – drawing on a wide range of economic, demographic, and skills-based indicators.

 

Contact 

Sonel Singh, Head of Marketing, Southeast Asia, Hays 
T: +60 3 7890 6351 
E: sonel.singh@hays.com.my 

 

About Hays Malaysia

Agensi Pekerjaan Hays (Malaysia) Sdn Bhd ("Hays Malaysia") is one of the leading specialist recruitment companies in Malaysia in recruiting qualified, professional and skilled people across a wide range of industries and professions. We provide mid to senior level recruitment services across both finance and commerce industries. We have become known as the experts in sourcing regional and global candidates, as well as returning Malaysians. 

Hays has been in Malaysia since 2012 and boasts a track record of success and growth, with two operating offices located in KLCC and Sunway. At Hays in Malaysia, we operate across the private and public sector, dealing in permanent positions, and workforce solutions such as recruitment process outsourcing (RPO) in the following specialisms: Accountancy & Finance, Banking & Financial Services, Construction, Engineering, Human Resources, Insurance, Legal, Life Sciences, Marketing & Digital, Procurement, Supply Chain, Sales and Technology. We continue to strengthen our position in Asia with the world-leading ISO 9001:2015 certification in all our operational markets including Malaysia, China, Hong Kong SAR, Japan, Singapore, and Thailand. 

 

About Hays

Hays plc (the "Group") is the world’s leading specialist in recruitment and workforce solutions, such as Recruitment Process Outsourcing (RPO) and Managed Service Provider (MSP). 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 2024, the Group employed over 10,300 staff operating from 225 offices in 33 countries. For the year ended 30 June 2024: 

  • the Group reported net fees of £1,113.6 million and operating profit of £105.1 million. 

  • the Group placed around 57,700 candidates into permanent jobs and around 225,000 people into temporary roles. 

  • 13% of Group net fees were generated in Australia & New Zealand, 32% in Germany, 20% in United Kingdom & Ireland and 35% in Rest of World (RoW). 

  • the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees. 

  • Technology is the Group’s largest division, with 25% of net fees, while Accountancy & Finance (15%) and Engineering (11%), are the next largest. 

  • Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Singapore, Spain, Sweden, Switzerland, Thailand, UAE, the UK, and the USA.