A new report by Randstad highlights a widening confidence gap in Malaysia’s labour market, with employers far more optimistic about business prospects than the workforce.
According to the company’s latest Workmonitor report, 95% of Malaysian employers expect business growth this year, yet only 68% of workers share that optimism. The disconnect suggests companies could face challenges sustaining growth amid economic uncertainty and accelerating technological change.
The findings draw on insights from 750 individuals and employers in Malaysia, supported by global data from more than 27,000 workers across 35 markets and analysis of over three million job postings.
It describes the shift as part of a broader “Great Workforce Adaptation,” driven by artificial intelligence (AI), evolving career expectations and the growing importance of managerial support.
AI perception gap emerges
Artificial intelligence is at the centre of this transformation, but the report finds a clear mismatch between employer ambitions and employee perceptions.
While companies are rapidly expanding AI adoption, 62% of Malaysian workers believe AI will only affect a small to moderate share of their current tasks, and 54% say AI benefits organisations more than employees.
However, global hiring trends suggest demand for AI skills is accelerating. In 2025, job postings requiring “AI agent” capabilities surged by 1,587%, while demand for “AI trainers” rose by 247%, reflecting the growing need for people who can train and guide AI systems. Demand for prompt engineering skills also climbed by 97% worldwide.
Despite concerns about automation, the report indicates AI is more likely to augment human tasks rather than replace jobs. Workers appear to be responding proactively, as 56% identify AI training as their top learning priority, while 63% say they are independently seeking opportunities to future-proof their skills outside employer-led programmes.
Workers rethink career paths
The research also points to a shift in how employees define career success.
About 44% of Malaysian respondents say they no longer want a traditional linear career path, instead preferring “portfolio careers” that allow them to explore different roles and industries. Employers appear to recognise the shift as well, with 75% agreeing the traditional career ladder is outdated.
Economic pressures are also reshaping work decisions. More than half of Malaysian workers (52%) say they have taken on, or are considering taking on, a second job, while 48% plan to increase their working hours to manage rising living costs.
Even so, workplace priorities are evolving. While competitive pay remains the main attraction for talent (89%), work-life balance has become the strongest driver of retention. Nearly 49% of employees say work-life balance is the primary reason they would stay in their current role, compared with 29% who cite pay and benefits.
Managers play stabilising role
Despite global concerns about declining workplace trust, Malaysian organisations appear relatively resilient.
The report shows 84% of employees trust their company leadership, while 85% trust their colleagues. In times of uncertainty, however, employees are increasingly turning to their direct managers, with 72% saying they are seeking greater reassurance from them due to volatile economic conditions.
Manager–employee relationships also appear to be strengthening, with 79% of respondents reporting a strong relationship with their manager, up six percentage points from 2025.
Intergenerational collaboration is emerging as another workplace strength. Three-quarters (75%) of Malaysian workers say they rely on colleagues from different generations to broaden their perspectives and support learning. Younger employees report gaining industry knowledge and soft skills from older colleagues, while senior workers increasingly learn technology and AI skills from younger team members.
Sander van't Noordende, CEO of Randstad said organisations that adapt to these changes will be best positioned for growth. “AI should be seen as key to augmenting tasks and highlighting the importance of roles that only people can perform. Traditional career goals are changing, with talent and organisations thinking more flexibly about what success looks like,” he said.
“However, human connection remains central to organisations, with managers taking on an increasingly important role in maintaining stability during the Great Workforce Adaptation. Only when businesses and talent are on the same page can true growth be unlocked.”