- 8 months ago
Nearly 50% of Malaysian companies are expanding their workforce in early 2025, according to Jobstreet by SEEK. In this interview with Managing Director Nicholas Lam, we explore how businesses are tackling talent shortages, embracing digital transformation, and rethinking recruitment in a rapidly evolving job market.
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00:00Thank you for tuning in, Niaga Awani.
00:10Right now we're in the topic where nearly half of Malaysian companies are actually looking to expand their workforce.
00:16In the first half of 2025, we're a sign of cautious optimism in a fast-evolving job market.
00:23And that's one of the key takeaways from Jobstreet.
00:24By six newly released Hiring Compensation and Benefits Report 2025,
00:30which surveyed over 2,200 employers and also human resource professionals across the country.
00:37And today we're diving into the findings on how Malaysian businesses are navigating the talent challenges
00:43while planning for growth and what they mean for both employers and job seekers in the months ahead.
00:50So to discuss further, we have the right authority to speak on this.
00:53We have Niklas Lam, the Managing Director of Jobstreet.
00:55Niklas, thank you so much for joining me this morning. How are you?
00:58I'm good, thanks. And thanks for making the time.
01:00No problem. Perhaps we could start with the statistics where the unemployment rate projected to reach decade low,
01:08which is 3.1%.
01:10So what measures, in your opinion, are employers taking to address the tightening labor market
01:16and the accompanying talent shortages, especially in high demand sectors?
01:21Please, Niklas.
01:21Right. Sounds good.
01:23So this is a really good question.
01:26And this now, it's equally important in both the acquisition space as well as the talent retention space.
01:32So there are three things that employers are doing.
01:34And this is what we're seeing.
01:36One, ensuring that we've got competitive compensation.
01:40And that cuts across increments, bonuses,
01:43having flexible benefits,
01:45benefits, as well as being more strategic in hiring.
01:50So many have adjusted salaries and awarded bonuses in line with market expectations,
01:54but also exploring initiatives like flexible workplace arrangements,
01:59mental wellness support,
02:01and upskilling opportunities to attract and retain talent,
02:04especially in high demand areas such as tech and digital.
02:08So let me put some of the steps in our reports,
02:11even in our findings, right?
02:13So over 75% of companies awarded bonuses in 2024.
02:1877% of companies actually gave salary increments in 2024.
02:22And 45% of companies offer flexible working hours.
02:26Companies are also focusing on niche skills and targeted hirings on high demand areas like IT,
02:31data, and digital marketing.
02:33So all these in unison is a key part in ensuring that companies operate in a very competitive landscape.
02:42But looking at another stats in your findings,
02:46in the report as well,
02:48considering that 56% of employers cite a lack of skilled talent as their top hiring challenge,
02:54So how effective are current upskilling and also re-skilling initiatives in bridging these gaps,
03:00especially when it comes to skills,
03:01particularly in digital and also AI landscape?
03:04So you're absolutely right.
03:06So upskilling efforts are actually growing.
03:08We see that widespread.
03:10But the effectiveness of the programs we have today is mixed,
03:14if I'm honest about it.
03:16And the reason for that is,
03:18one, I think there is a certain scale or depth needed to close this gap.
03:23A lot of organizations,
03:25whilst it's growing in terms of upskilling programs,
03:28a lot of them still focus on general capabilities,
03:32as opposed to emerging digital and AI skill sets,
03:35which is more relevant in future work readiness, right?
03:39So this is an area that we really need to go deeper on.
03:44So we see better outcomes in organizations
03:47that combine formal learning with practical exposure.
03:50So, for example, job rotations or real-time project work,
03:54that really helps with on-ground training.
03:58And another thing that we need in Malaysia
04:02is a consistent national framework
04:04to ensure that training maps to the demands of future jobs.
04:08Stronger industry academia partnerships is also critical.
04:12Things that align with the national AI roadmap
04:14is critical to ensure that we have a more consistent
04:17and scalable, systemic approach
04:19in upskilling the impact that we need to drive.
04:24So national framework or roadmap is important,
04:27also strategic partnership is important as well.
04:29But as Malaysia position itself as a regional hub
04:32of AI and also digital transformation,
04:35in European and Nicholas,
04:36as well as what strategies are in place
04:38to actually ensure that the workforce
04:40is adequately prepared to meet the evolving trends
04:43or demands of these rapidly advancing sectors, especially.
04:48Well, the good news is
04:50employers are already considering AI knowledge
04:53in their hiring process,
04:55with some of them actually regarding it
04:57as an essential skill.
04:58So many organizations today
05:00are aligning with national strategies
05:02and government initiatives
05:03to support workforce development.
05:05So let me quote some stats that we see.
05:07So about 70% of Malaysian employers
05:09evaluate AI knowledge during hiring itself.
05:13That is a massive change
05:14from what it was a couple of years ago.
05:1636% of employers view AI as a core skill.
05:21And many organizations are adopting this practice
05:24and we are seeing this grow with time.
05:28Based on your data as well,
05:29there is 70% of Malaysian businesses
05:31now assess AI skills during hiring,
05:33like I mentioned earlier,
05:34and though only 34% consider it crucial
05:37at this stage,
05:38and that's pretty low,
05:39that's below half.
05:40But given the significant investments
05:41in data centers
05:42and also the associated environmental concerns,
05:45how are companies actually balancing
05:47technological advancement first
05:49and also with the sustainable practices
05:51and also resource management
05:52at the same time?
05:54Nicholas?
05:55Yeah, so it's a good question as well.
05:57So the environmental cost
05:58of digital infrastructure
06:00is under increasing scrutiny,
06:03especially in energy-intensive data centers.
06:06We're seeing a boom in that,
06:08especially in the Johor region.
06:09So in response,
06:11forward-looking companies like MNCs,
06:13tech-driven organizations,
06:14are embedding sustainability
06:16into the core of their digital strategies.
06:20So from powering operations
06:21with renewable energies
06:22to designing greener modular infrastructure,
06:26sustainable practices
06:27are no longer nice to have.
06:29It is a business imperative.
06:31So as digitalization accelerates,
06:34organizations that align with ESG goals
06:36with technological growth
06:38will be better positioned
06:39to scale responsibly
06:40while meeting stakeholder
06:42and regulatory expectations.
06:45But besides all this technology,
06:47another concern that we can look into
06:48is on the mental health
06:50or work-life balance.
06:52But based on the report as well,
06:53only 45% of employers
06:55offer flexible work hours
06:56while mental health support
06:58and family-friendly benefits
06:59are increasingly common.
07:01But that's a set.
07:02The question is,
07:03with the rise of flexible work arrangements
07:04and the emphasis
07:05on mental health benefits,
07:07how are organizations ensuring
07:08that these policies
07:09are effectively implemented
07:11and accessible
07:12across all levels of workforce?
07:16Well, thankfully,
07:17first on those stats,
07:17while low, it is improving.
07:19I hope that this continues
07:20to improve with time.
07:22So with regards to
07:25effective implementation,
07:27I think a big component of it
07:28is how consistent are we
07:31in a lot of organizations
07:33in their implementation
07:33across all levels
07:34and all functions
07:36within the organization.
07:37That is really, really key.
07:38What we've seen
07:39in successful organizations
07:41is they've clearly integrated it
07:43into their core policies.
07:45They have made it their culture.
07:47Hybrid work arrangements
07:49to balance flexibility
07:50and culture.
07:51Consistent communication
07:52on importance of mental health
07:54is really key.
07:56Strong leadership
07:57and commitment
07:57is a key one.
08:00So walk the talk as well
08:01and leaders practicing
08:02the same practices
08:02that we speak.
08:04Investment into technology
08:06and communication tools
08:07is important to ensure
08:08that once we cultivate
08:10remote or flexible
08:12working arrangements,
08:13it is equally effective
08:14and productive.
08:16And last and not least,
08:18we need to ensure
08:20that we constantly listen
08:21to our employee feedback
08:23to ensure that
08:24whatever flexibility
08:25or mental health initiatives
08:27that each company
08:28is trying to drive
08:29is both meaningful
08:30in the policy
08:32as well as in application.
08:33But diversity,
08:35equity and also inclusion,
08:36DEI,
08:37also gains its momentum
08:38the same way as
08:40the mental health concerns
08:41as well,
08:42which is 40%
08:43based on the report.
08:44So what tangible outcomes
08:45have been observed
08:46in terms of employee
08:47retention,
08:50promotion rates
08:50and also overall
08:51workplace culture
08:53in European and English?
08:54Still early days
08:55is what I have to say.
08:57Early days
08:58and adoption
08:58is still relatively low
09:00in Malaysia,
09:01is what I would say.
09:03But for those companies
09:04that have implemented
09:06formal DEI initiatives,
09:08we are starting
09:09to see early gains,
09:11especially in the areas
09:12of workplace sentiment
09:13and diversity
09:14in hiring pipelines.
09:17So, again,
09:18quoting those companies
09:19that have formal
09:20companies,
09:21they report higher levels
09:23of employee engagement,
09:24a stronger sense
09:25of belonging,
09:26especially amongst
09:27underrepresented groups.
09:29Some are also tracking
09:30improvements in internal
09:32mobility and retention,
09:34though the data
09:34on promotions
09:35is still,
09:36as I mentioned,
09:37limited due to
09:38its infancy stage.
09:39It is worth noting
09:40that most successful
09:42DEI outcomes
09:42come from companies
09:43that treat it
09:44as a leadership priority,
09:46not just as a HR function.
09:49But when we talk
09:50about the job markets,
09:51I want to take highlight
09:53on the latest initiatives,
09:54government initiatives,
09:55which is
09:56the Johor Singapore
09:57Special Economic Zone,
09:59JASSEZ,
10:00where in light
10:00of this project
10:01has created
10:0220,000 skilled jobs
10:04through these initiatives.
10:06So, in your opinion,
10:07how are local
10:07educational institutions
10:09and training programs
10:10are actually adapting
10:11to prepare
10:12the workforce
10:13for these opportunities?
10:15Yeah, so the report
10:16doesn't specifically
10:17cover this,
10:18but there is evident demand
10:19for skilled talent
10:20in this zone.
10:22So, the key sectors
10:23in this special economic zone
10:24include logistics,
10:26manufacturing,
10:27technology,
10:28and digital services.
10:30So, what we are noticing
10:32at least,
10:32like local polytechnics,
10:34universities
10:34and training providers
10:35are expanding
10:36their TVET programs
10:37to cater for
10:38this growing potential demand.
10:40And public-private partnerships
10:42involving MDEC,
10:44HRD Corp,
10:44and EPU
10:45are focusing
10:46on future ready skills.
10:48But considering
10:49the shift towards contract
10:50and also freelance
10:52hiring models right now
10:53that's, you know,
10:54mainly are contracts
10:55if I talk to my friends
10:57when they say
10:58they're actually
10:59the contracts
10:59and sort of permanent,
11:00but that's actually
11:01normal right now.
11:03But in your opinion,
11:04what implications
11:05does this have
11:05on job security,
11:07especially when it comes
11:08to employee benefits
11:09and also long-term
11:10career development
11:11for Malaysian workers?
11:13Yeah, this is really growing,
11:15especially in the current climate
11:17on global trade uncertainties.
11:20We're already starting
11:21to see a growing number
11:22of contract
11:23and temporary staff.
11:24And this is also consistent.
11:26If you look at
11:26the younger generation,
11:28a lot of them
11:29are actually seeking flexibility.
11:31And when you look
11:32at flexibility,
11:33you naturally associate,
11:34oh yeah,
11:34then gig-type works
11:36or temporary contract work
11:38is the way to go.
11:40So contract
11:41and freelance work arrangements
11:42are becoming more common
11:43because companies
11:44are seeking flexibility
11:45in this climate.
11:47And workers,
11:48on the other hand,
11:50they may benefit
11:50from greater autonomy
11:51or diverse experiences,
11:54but there's also uncertainties
11:55around stability,
11:57income stability as well,
11:58benefits,
11:59or even structured
12:00career progression.
12:02So a lot of the younger workers
12:05and especially in digital roles,
12:07while it is seen
12:08as a viable path,
12:10it actually comes
12:11at the cost
12:12of traditional protections,
12:14one that a permanent employee
12:15would typically
12:16get.
12:18So employers
12:18that want to retain
12:19this top freelance
12:21or contract talent,
12:23they are starting
12:23to provide
12:24hybrid benefits
12:25as a way
12:26to kind of retain them,
12:27such as training,
12:28access,
12:29performance bonuses,
12:30or wellness support.
12:31So these are
12:32your usual benefits,
12:33your usual perks
12:33that a permanent employee
12:35typically gets.
12:36But a long-term solution
12:37is still required,
12:39maybe a policy update.
12:40As this pool of talent
12:43continues to grow
12:44in the freelance
12:46and contract space,
12:48we may need
12:48a policy update
12:49to ensure
12:50that non-permanent workers
12:51are not left behind
12:52in terms of protection
12:53and growth pathways.
12:55And as for contract workers,
12:57it is important
12:58for them to seek,
13:00meanwhile,
13:01before a policy
13:02is being set,
13:03seek self-development,
13:05active career management,
13:07please manage
13:08their own insurance
13:09as well as
13:10their retirement savings
13:11to plan for their future.
13:13And I do agree with you,
13:16we still need
13:16the proper policies
13:18when it comes
13:18to these gig workers
13:20who have a better
13:21and stability,
13:22I would say,
13:23when it comes to their work.
13:24But let's talk
13:26on the recruitment
13:27for my last question
13:28because we see
13:28that as companies
13:29increasingly incorporate
13:31AI tools
13:32into their recruitment
13:33processes,
13:34what safeguards
13:35are being actually
13:36implemented
13:36to mitigate
13:37potential biases
13:38and also that
13:39ensure fairness
13:41in candidate selection.
13:44Yeah, this is
13:44a tricky one as well.
13:46Like, there are
13:46two school of thoughts
13:48right now.
13:49Like, on one end,
13:50it's like,
13:50oh, AI removes biasness.
13:52On the other hand,
13:52it creates biasness
13:54because it kind of
13:54follows your hiring pattern
13:56and all of that.
13:57So, Job Street by Seek,
13:58for us,
13:59we are very big on AI.
14:01We embed AI
14:01in almost every single part
14:03of our hiring process
14:04as well as in the products
14:05that we offer.
14:06to our customers.
14:07So, the way
14:08we should manage this
14:11well and safeguards
14:13specifically to your questions,
14:15I think the inputs
14:16that are being considered
14:17into AI models
14:19in the future
14:20should be skill-based
14:22or merit-based.
14:22That already helps
14:23eradicate a lot more
14:25potential biasness
14:26and fairness.
14:27The second part is
14:28whilst AI is in
14:30all parts of the journey
14:31and whilst it's trying
14:34to promote efficiency,
14:35it's important that
14:37AI becomes more explainable.
14:40So, if,
14:41let's just say,
14:41as part of the screening
14:42or candidate selection
14:44to your question,
14:46it's important
14:46if the candidates
14:48are being identified
14:49as these are
14:50your high-fit ones,
14:51it's important
14:52to call out
14:53why are they high-fit
14:55because then
14:56you can remove
14:57the bias
14:57that people understand it.
14:59Look,
14:59so, AI is there
15:00to improve productivity,
15:03improve efficiencies.
15:05It's eradicating
15:06a lot of the
15:06administrative work
15:07that typically
15:09a lot of us
15:09still do
15:10in today's environment.
15:11But what it does not do
15:13is remove
15:14decision-making.
15:16It's supposed
15:16to facilitate
15:17decision-making.
15:18So, tabling
15:19as many facts
15:19as possible,
15:21facilitate that
15:22is more important.
15:24And that way,
15:25then, at least
15:25a lot of our
15:25human interactions
15:26moving forward
15:27can be focused
15:27on having
15:28meaningful conversations
15:29with our
15:30potential prospects.
15:32Again,
15:32that was
15:33Nicholas La,
15:34the Managing Director
15:35of Jobstreet
15:35and what we discussed
15:37earlier is based
15:38on the newly
15:39released report
15:41by them,
15:41which is the
15:42Hiring Compensation
15:44and Benefits Report
15:452025
15:45and perhaps you can
15:47find that
15:47on their website.
15:49And please
15:49have,
15:50you can find
15:50this whole discussion
15:51on all of our
15:52social media platforms
15:53and that includes
15:53astroawani.com
15:54And again,
15:55thank you so much
15:56Nicholas and
15:56I'm Nabila Khalida.
15:57Thank you so much
15:58for watching.
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