Recruiting Challenges in Malaysia

More than half of Japanese companies are turning to automation to recruit and retain talent.

By Maggie Mancini

More than half (63.5%) of Japanese businesses in Malaysia are struggling to recruit and retain talent, particularly in the manufacturing and retail industries, according to a survey from the Japan External Trade Organisation (Jetro), which collected data from 4,892 companies worldwide.  

Nearly half (47.9%) of companies are facing a talent shortage, the report finds. In Malaysia, more than 60% of companies in markets like Selangor, Johor, and Kuala Lumpur are facing challenges finding skilled workers. This shortage is particularly high in professional, IT, and managerial occupations.  

This issue, along with rising labour costs, is leading more than half (51.5%) of Japanese firms in the country to consider automating their operations.