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5 trends impacting Malaysia’s jobs outlook
Malaysia is one of the most exciting and dynamic markets in the world and I’ve been privileged to recruit the best talent for the best companies over the past years. Despite the uncertainty faced by companies over the recent months, many companies are expected to remain fairly optimistic.
Hiring activity will gradually pick up, with nearly one in two companies (47%) planning to increase headcount, as we observed in the 2017 Michael Page 2017 Malaysia Salary and Employment Outlook. This will be led mainly by increased investment in the technology sector, and as companies complete their restructuring exercises.
Here’s a look at the five trends that will impact the Malaysia job market in 2017:
1. Salary increases in companies are expected to stay on par with the region. Half of employers surveyed in Malaysia expect to increase salaries by 1-5%, in line with the Asia average of 48%.
2. Conditions for growth are especially positive for technology companies operating in the areas of financial technology (fintech), app development, and e-commerce. More of such companies are relocating to Malaysia for its strategic location and low operating costs.
3. On the hiring front, 60% of companies said they will be actively looking to hire mid-to high-level employees with digital skills, such as software programming, app development, and data analytics. Apart from start-ups, demand for such skills has also become increasingly urgent for more traditional companies looking to engineer new technology functions.
4. In a talent-short market, this means competition for high-quality candidates will become even tougher in an already shallow pool. In the area of Big Data, for instance, companies are recruiting from places outside of Malaysia, such as in the United States, where there are more candidates with the right set of skills and experience.
5. Companies in more traditional industries will remain cautious about hiring. Having experienced a greater impact from the global economic slowdown, such companies, typically those in the oil and gas, manufacturing, property and banking industries, will be less likely to hire for new positions, unless it is for a key role, or to replace headcount.
However, the Malaysian shared services industry is likely to buck this trend in 2017. Malaysia continues to be a preferred destination for organisations looking to establish a cost-effective shared services or outsourcing centre within a country that boasts a diverse, well-educated and multilingual workforce.
For more salary and employment trends, download the 2017 Michael Page Salary and Employment Outlook.