8 Most In-Demand Skills in Malaysia for 2025

According to the latest Thornton International Business Report, 68% of businesses in Malaysia are struggling to find skilled individuals across various industries. As the country moves towards technological advancement, skill shortages persist. Furthermore, one of the main reasons behind the shortage is the mismatch between the skills and market demand. Many graduates enter the workforce with skills that don’t match industry needs and hence talent shortage in key sectors. In this article, we will discuss the skills that you need to have to be more aligned with the changing needs of the labor market.

Work Culture in Malaysia

The work culture in Malaysia has both traditional and modern perspectives, which has formed an interesting working culture. Here are the main aspects you should know about work culture in the country: 

• ‍Hierarchy: In Malaysia, the workplace is very hierarchical and respect for seniority is key. Decision-making is centralized at the top, and understanding the hierarchy is important for a respectful workplace.‍
• Relationships: Building personal relationships is highly important. Networking and trust building are key aspects of the work environment, as Malaysians believe that strong personal relationships lead to more successful and longer collaborations.‍
• Work-Life Balance: While Malaysians are workaholics, there is also a strong emphasis on work-life balance. Time with family and friends is important and employers recognize the value of personal time for overall well-being and productivity.

Skills In Demand in Malaysia 2025

By 2025, Data Science and Analytics, Cybersecurity Expertise and Green Energy and Sustainability will be in high demand, driving innovation, security and sustainability across industries. Here are the top skills expected to be in demand by 2025:

1. Engineering Skills

Malaysia’s semiconductor industry is actively looking for engineering talent to achieve its ambitious growth targets. A recent forum in Penang brought together local and foreign chip manufacturers, as well as learning institutions, to discuss the National Semiconductor Strategy (NSS) which needs 50,000 skilled engineers. 

According to MSIA chairman Wong Siew Hai, companies like Oppstar, AMD, Intel and others already employ over 7,000 engineers from a pool of around 90,000. But this may not be enough to meet the RM1.2 trillion chip production target by 2030. Closing the skills gap is crucial for Malaysia to stay competitive and achieve its vision to be a global leader in the semiconductor industry.

2. Healthcare Skills

Malaysia is facing a staff shortage of healthcare professionals, especially nurses and medical specialists. The health ministry predicts a shortage of 8,000 nurses from 2023 to 2024. The current ratio of specialists to population is 4 per 10,000 people, far below the OECD’s benchmark of 14.3 per 10,000. To address the gap, the government is also focusing on healthcare training and workforce development.

3. Cybersecurity Skills

As cyber threats escalate, Malaysia is placing a premium on a skilled cybersecurity workforce. The upcoming Cybersecurity Bill emphasizes the need for experts to counter these growing threats. Currently, the country has 13,000 cybersecurity professionals but aims to increase to 25,000 by 2025. With 94% of organizations in Malaysia having been breached, highly skilled professionals are in demand.

4. AI Skills

AI skills are changing the Malaysian workforce as companies adopt technology. 75% of employers are looking for AI literacy in their job requirements. Decoding Global Talent Report 2024, GenAI Edition, shows that 79% of Malaysian professionals expect their roles to change with AI. By 2028, 97% of employers plan to transform their companies into AI companies. Clearly, building a future workforce is the focus.

5. Data Science Skills

Data science skills are becoming more important in the Malaysian job market. By 2030, Malaysia will need at least 20,000 data professionals and 2,000 data scientists to meet industry demands. This is the growing importance of data driven decision making across sectors. With companies embracing big data and advanced analytics, the need for data experts will grow and there are opportunities for those with expertise in this field.

6. IT Skills

According to recent reports, 48% of companies facing talent shortage in Malaysia. The challenge is more pronounced in key states like Selangor, Johor and Kuala Lumpur where 60% of companies struggle to find skilled workers. The shortage is most acute in professional, IT and managerial roles, hence the need for a workforce with advanced technical and managerial skills to support Malaysia’s digital economy.

7. Green Energy Skills

Malaysia is focusing on green energy skills with over 71 new job titles across energy, manufacturing and transportation sectors. The Green Jobs Portal aims to create 200,000 green jobs by 2030. To support this transition, the New Industrial Master Plan 2030 and National Energy Transition Roadmap are expected to attract RM1.3 trillion in investments. 

8. Tourism and Hospitality Skills

The World Tourism Body forecasts that by 2034, Malaysia’s Travel & Tourism sector will generate MYR 336.6 billion annually to the GDP, 12.1% of the national economy. Employment in the sector will also exceed 3.5 million jobs, making it one of the largest sector in the national workforce and one in six Malaysians will be employed in this sector. 

How to Increase Your Skills for the Job Market in Malaysia

To increase your employability in the Malaysian job market, get in-demand technical skills through vocational training or online courses. With practical experience from internships or freelance work, develop soft skills like communication and teamwork. Stay updated on industry trends and get relevant certifications to match your skills to the current job market, boost your chances.

1. AHK Malaysia

AHK Malaysia (German-Malaysian Chamber of Commerce and Industry) offers vocational training programmes to improve skills in various sectors. They offer German Dual Vocational Training (GDVT) which combines practical training with theoretical learning especially in engineering, manufacturing and technical fields.

2. Selangor Human Resource Development Centre (SHRDC)

Selangor Human Resource Development Centre (SHRDC) offers various skill courses to enhance industry specific skills. These include training in engineering, IT, manufacturing, leadership and technical skills like automation, cybersecurity and business management to prepare individuals to meet the changing job market demands.

3. Penang Skills Development Centre (PSDC)

Penang Skills Development Centre (PSDC) offers various vocational training programs to enhance skills in engineering, manufacturing and IT. Key courses include Certification in Engineering, Technical & Vocational Education and Training (TVET), German Dual Vocational Training (GDVT) and scholarships for further studies to prepare individuals for the changing job market.

Conclusion

In summary, the Malaysian job market is changing with increasing demand for skilled workers in engineering, IT, healthcare and green energy. Knowing these in-demand skills allows professionals to match their skills to the market. Platforms like Edsteller offers training solutions to address the skill gaps. Tools like Skill Matrix help to identify the gaps and guide businesses to develop skills effectively. By upskilling employees with the right skills, businesses can stay ahead and grow long-term in Malaysia’s economy.