Malaysia’s employment landscape experienced a notable shift in Q2 2025, with a decline of 7,000 workers, a trend that reveals important changes in workforce composition.
Key figures from Q2 2025:
- Local employment fell by 26,000 positions
- Foreign workers increased by 19,000
- Net employment decrease: 7,000 total
This data reflects Malaysia’s increasing reliance on foreign manpower in essential sectors, particularly manufacturing, construction, and agriculture. The gap between local workforce availability and industry demand continues to widen, making strategic manpower planning more critical than ever.
🔍 Key Highlights from Q2 2025
1. Minimum Wage Review in Progress
| Current Status The government is conducting a comprehensive review of Malaysia’s minimum wage, which currently stands at RM1,500 per month. This review considers cost-of-living increases and economic conditions. | Expected Timeline The new minimum wage rate is anticipated to be announced by end-2025 or early 2026. Implementation will likely follow within 3-6 months of announcement. |
Action Required
Employers should budget early for anticipated manpower cost increases. Consider workforce planning adjustments and productivity improvements to offset rising labour costs.
Historical patterns suggest wage adjustments typically range between 10-15%. Finance and HR teams should model scenarios now to ensure smooth transitions when the new rate takes effect.
Industries with high labour intensity, such as retail, hospitality, and manufacturing, will feel the most significant impact.
2. Skills Development & Upskilling Push
Malaysia’s Human Resource Development Corporation (HRDCorp) is actively promoting innovative learning formats to address the nation’s skills gap. With technology reshaping industries at an unprecedented pace, continuous upskilling has become a strategic imperative rather than a nice-to-have.
Investment in training now means competitive advantage tomorrow. Companies that prioritize workforce development report higher retention rates, improved productivity, and better readiness for industry disruptions.
3. Levy & Admin Cost Adjustments
Affected Sectors
- Agriculture & plantations
- Construction & infrastructure
- Logistics & warehousing
- Manufacturing & production
Strategic Response
Companies are adapting by optimizing workforce mix, investing in automation where feasible, and implementing multi-year manpower planning to anticipate regulatory changes. Early preparation reduces financial surprises and supports better negotiation with authorities.
Sectors Highlight
| Logistics Sector The e-commerce boom continues to drive unprecedented demand for warehouse and delivery personnel. Last-mile delivery services are expanding rapidly, particularly in urban centers. Key hiring hotspots: Selangor – Klang Valley fulfillment centers Johor – Cross-border logistics hubs Penang – Northern distribution networks Positions in demand: warehouse supervisors, forklift operators, delivery riders, inventory specialists, and logistics coordinators. Companies offering competitive shift allowances and career progression pathways are winning the talent war. | Manufacturing Sector Electronics and automotive industries continue to drive strong demand for skilled technicians and production operators. Malaysia’s position as a semiconductor hub intensifies competition for qualified talent. Talent requirements: CNC machine operators Quality control technicians Assembly line specialists Maintenance engineers Cross-border hiring for skilled labour remains active, with companies recruiting from Vietnam, Indonesia, and Bangladesh to fill technical gaps. Upskilling local talent through apprenticeship programs is becoming a parallel strategy. |
Healthcare Demand Surge Malaysia’s aging population and expanded healthcare infrastructure are creating sustained demand for caregivers, Patient Service Assistants (PSA), Bedside Care Assistants (BCA), and registered nurses across both public and private healthcare settings. Specialized roles like geriatric care and rehabilitation support are particularly sought-after as the nation’s 60+ demographic grows. Foreign healthcare workers are increasingly filling gaps, though credential recognition remains a hurdle. | Retail Hiring Acceleration Festive and temporary hiring is ramping up across F&B, fashion, and electronics retail. The September-December period sees a 40-60% spike in part-time hiring as brands prepare for year-end shopping seasons. High weekend demand for sales staff, cashiers, and customer service roles creates opportunities for students and gig workers. Flexible scheduling and performance bonuses are key retention tools in this competitive segment. |
How Kanry Adds Strategic Value
Malaysia’s workforce ecosystem is evolving at breakneck speed, with levy updates, sector-specific hiring challenges, and rising salary expectations reshaping the employment landscape. Employers need more than a recruitment agency. They need a strategic manpower partner.
Compliance First
Licensed APS & JTK Compliance. ISO 9001:2015 & 14001:2015 certified, assuring quality, environmental performance, and compliance.
We navigate Malaysia’s complex regulatory environment so you don’t have to worry about compliance gaps or penalties.
Agile Deployment
Contract, gig, shift-based, and permanent placements. Whether you need 5 workers tomorrow or 500 next quarter, our flexible models scale with your business demands.
Full-Suite Support
End-to-end management: sourcing, skills assessment, onboarding, work pass processing, payroll administration, and ongoing workforce support throughout the employment lifecycle.
Sector Expertise
Proven track record across logistics, healthcare, retail, manufacturing, and engineering. We understand your industry’s unique challenges and talent requirements.
🤝 Let’s Build Smarter Manpower Strategies Together
Whether you’re:
- Navigating levy revisions,
- Facing talent shortages,
- Expanding operations in Johor, Klang, or Penang,
- Or seeking flexible staffing models for peak seasons,
Kanry Search is your strategic ally.
📩 Contact Kanry Search today to discuss your manpower needs and discover how we can help you stay compliant, agile, and competitive.
