Only 5% of Malaysian employers confident in securing AI talent, Aon finds

Only 5% of organisations in Malaysia are confident they can recruit and retain enough AI-skilled talent, even as nearly six in 10 employers are already deploying or piloting AI, highlighting a growing gap between technology adoption and workforce readiness, according to a new Aon study.

Aon’s inaugural Human Capital Trends Study found that 59% of Malaysian organisations have either deployed AI or are actively piloting AI programmes. While this trails Singapore, where the figure stands at 80%, and the APAC average of 74%, the findings point to rising momentum for AI adoption in Malaysia.

The bigger challenge, however, may be whether organisations have the people and skills required to make those investments deliver.

Despite the shortage of AI talent, 91% of Malaysian organisations believe AI will create new opportunities and require new skills, while 82% expect the technology to automate some tasks without eliminating existing roles.

“Malaysian organisations recognise the transformative potential of AI and are continuing to integrate it across their businesses,” said Farhan Hanif, Head of Growth, Human Capital, Malaysia, Aon.

“However, technology investment alone is not enough. Employers that invest in skills development, workforce planning and change management alongside AI adoption will be better positioned to turn digital transformation into sustainable business performance and competitive advantage,” he added.

The study found that 41% of Malaysian organisations have high levels of HR data maturity, giving employers a potentially strong foundation for more data-driven workforce decisions.

However, that capability is not consistently translating into a stronger employee proposition. Only 10% of organisations have a clearly defined and well-understood employee value proposition (EVP), compared with 31% in Singapore and 22% across APAC.

The findings suggest that organisations could make better use of workforce data to strengthen employee engagement and retention, particularly as competition for critical skills intensifies.

Wellbeing presents another gap between organisational confidence and visible action. While 83% of organisations believe their wellbeing strategy is meeting workforce needs, only 14% report strong and visible leadership commitment to employee wellbeing.

Employee expectations around benefits are also running ahead of what employers currently provide. 72% of employees consider customised benefits important or extremely important, but only 31% of employers offer them. Malaysia nevertheless performs better than the APAC average of 22% on this measure.

“The findings show that organisations have a strong foundation to build on, particularly through investments in workforce data, wellbeing and benefits,” said Rachel Jayaprakash, Head of Talent Solutions, Malaysia, Aon.

“The next opportunity is turning those investments into a more differentiated employee experience that strengthens trust, supports engagement and helps people and businesses succeed together,” she added.

Compensation is another area where Malaysian employers have room to strengthen their practices. Just 14% of organisations rate their pay transparency practices as mature, while 34% have not benchmarked compensation during the past year.

With employers competing for increasingly specialised skills, the study suggests stronger pay transparency and more regular compensation benchmarking could become important tools for attracting and retaining talent.

Workforce resilience is also emerging as a priority. Around 31% of organisations are taking action to improve retirement savings outcomes, including measures aimed at addressing the gender retirement savings gap.

Looking ahead, adaptability and change management are identified as the most critical workforce skills organisations will need over the next three years, reinforcing the importance of preparing employees for continuous transformation rather than focusing solely on technical AI capabilities.

Overall, Aon’s findings point to a growing need for Malaysian organisations to align their people strategies with their technology investments. For employers accelerating AI adoption, building the right skills, improving workforce planning, strengthening pay practices and creating a clearer employee proposition could determine whether AI investment translates into sustainable business performance.