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Overall score

Score by Indicator

4.6
in 2016 5.1
0 2.5 5 7.5 10

Key drivers

Labour market participation

Higher expected participation rates have further contributed to Malaysia’s falling score, giving employers a larger pool of workers to hire from. The country has successfully increased female labour market participation.

Due to the lack of availability of Malaysian structural unemployment data, we did not calculate the country’s Talent Mismatch score and therefore the overall Index score was calculated using six indicators.

 

Labour market flexibility

The World Bank’s ranking of how regulated Malaysian labour market has improved, suggesting more flexibility for workers and employers relative to its competitors.

Overall wage pressure

Whole economy earnings are forecast to be unchanged this year.

COMPARISON TOOL

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COUNTRY OVERVIEW

Ground View

Tom Osborne, Regional Director, Hays Malaysia

Malaysia’s economy has rebounded and continues to gain momentum across most industries. Although the attraction and retention of talent I Malaysia has eased in the unskilled working environment, the reality on the ground is that it remains a very competitive landscape for businesses to obtain and retain skilled employees. In almost every job function and nearly every industry in Malaysia, the skilled professional recruitment market has become more competitive this year and all indicators suggest that this will not ease any time soon. Businesses will need to show innovation and invest item in understanding what will attract the best talent in the future if they are to employ top talent in Malaysia and overcome the fundamental skill shortages that Malaysia experiences.

Tom Osborne, Regional Director, Hays Malaysia

Country Profile

Malaysia’s Index score has declined substantially since last year. That suggests that conditions for firms looking to attract and retain talent have eased on average.

Productivity growth continues to underperform expectations in Malaysia. All else being equal, that will tend to reduce overall demand for unskilled workers and, along with inflation, is likely contributing to a subdued forecast for overall real wage growth in 2017.

However, in large parts of the skilled labour market shortages remain. In the first quarter of 2017 there were twice as many job vacancies as there were in the first quarter of 2016, indicating that there are certainly some employers struggling to find the workers they need.

Key skills in demand

  • Cyber security experts
  • Compliance professionals
  • Digital marketing professionals
  • Developers
  • General managers

News and Press Materials

Tom Osborne, Regional Director, Hays Malaysia