Malaysia, 15 January 2026 - New insights released by Hays, the global leader in specialist recruitment and workforce solutions, reveal five key trends shaping Malaysia’s hiring landscape in 2026. 

Despite ongoing economic headwinds, organisations across Malaysia are navigating 2026 with a clear appetite for growth, while also facing heightened challenges around talent retention, workforce expectations and the rapid adoption of AI technologies. 

Key findings for Malaysia 

1. Organisations are still looking to grow despite economic pressures 

• 83 per cent of employers in Malaysia cite growing their organisation as a key strategic priority for 2026.
• Employers are focused on: 
  • Expanding market share (40 per cent) 
  • Improving competitiveness (32 per cent) 
  • Expand product portfolios (26 per cent) 
• Growth strategies are shifting toward targeted capabilities, critical roles and sustainable, productivity‑focused workforce planning rather than broad headcount expansion. 

2. Talent retention emerges as a major barrier to growth 

• 23 per cent of employers identify talent retention as their biggest obstacle to achieving organisational goals, slightly higher than the Asia average (21 per cent). 
• Market competitiveness and evolving employee expectations amplify retention challenges. 
• Career development, progression clarity and manager‑led engagement are emerging as key differentiators. 

3.  Flexible work remains a core attraction driver 

• 50 per cent of professionals in Malaysia say flexible working arrangements are important to them, higher than the Asian average (45 per cent). 
• According to professionals. flexibility has a direct impact on: 
  • Work‑life balance (69 per cent agree) 
  • Productivity (64 per cent agree) 
  • Retention and motivation (44 per cent agree) 
• Organisations embedding flexible models are better positioned to sustain performance and reduce attrition risk. 

4.  Conversational AI becomes part of everyday workflows 

• 93 per cent of professionals in Malaysia now use conversational AI tools (e.g., ChatGPT, Copilot), slightly higher than the Asia average (92 per cent). 
• AI is being used to support productivity in areas such as multilingual content creation, analytics and decision‑making. 
• Employers must balance opportunity with governance through training, policy clarity and responsible‑use frameworks. 

5.  Life Sciences one of fastest‑growing sectors in Malaysia 

• The Life Sciences sector is entering a period of rapid expansion, with Malaysia recording 9.4 per cent projected growth, the 3rd fastest globally behind Sweden and Denmark. 
• 92 per cent of Life Sciences professionals in Malaysia expect their salaries to increase in 2026, reflecting strong sector confidence and long‑term career prospects. 
• Employers offering clear career pathways, cross‑functional exposure and access to cutting‑edge innovation are best positioned to attract high‑potential talent. 

Tom Osborne, Managing Director of Hays Southeast Asia 

“Malaysia’s talent landscape is evolving at remarkable speed. Demand for specialised scientific and technical skills is accelerating, driven by increased investment, technological advancement and a stronger push toward innovation‑led industries.” 

“For employers, this means rethinking how they attract and develop niche talent, while for professionals it opens the door to some of the most exciting and future‑focused career pathways in the market today. Organisations that align their workforce strategies with this momentum will put themselves in the strongest position to grow in 2026.” 

For more information contact:

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