SHAH ALAM - Malaysia is unlikely to be short of jobs in 2026, but what workers will face instead is a job market that looks increasingly fragmented, flexible and uncertain.
Economists said the labour market was shifting away from stable, long-term employment towards contracts, project-based work and short-term hiring, as companies try to manage rising costs and global uncertainty.
Data from the Department of Statistics Malaysia showed that there were 17.06 million employed persons as of October 2025.
Employees made up 74.8 per cent of the workforce, indicating a labour market that remained active but increasingly cautious about long-term commitments.
Economist Dr Mohamad Idham Md Razak said the employability outlook suggested structural change rather than job scarcity.
“By 2026, Malaysia’s job market is likely to be characterised less by outright job scarcity and more by fragmentation.
“Firms are cautious about fixed payroll costs amid global uncertainty, rising operating expenses and technological disruption,” he said.
As a result, he said the labour market was seeing fewer permanent roles, a rise in contract-based hiring and a stronger focus on skills rather than credentials, particularly in private-sector as well as small and medium enterprises-driven employment.
He also noted that growth was expected in advanced manufacturing, electrical and electronics, renewable energy, logistics, healthcare, tourism and digital services.
Regarding sectors that are expected to receive pressure and restructuring, he said low-value manufacturing, traditional retail, administrative roles and routine office jobs that were increasingly automated or consolidated to manage costs.
Meanwhile, Malaysian Future Institute honorary fellow and economist Datuk Dr Madeline Berma when contacted recently said Malaysians were heading into a more adaptable employment landscape.
“Malaysians expected to see a more flexible job market. It has the capability to adapt to changing economic conditions,” she said.
She identified three main job creators which were artificial intelligence, data and cloud, semiconductor and high-value manufacturing as well as green economy and environmental, social and governance skills.
Berma further warned of pressure and potential job losses across several sectors based on a study conducted by Talent Corporation Malaysia.
These included wholesale and retail trade (245,000 jobs), food manufacturing services (203,000), global business services (89,000), electrical and electronics (37,000) and information and communications technology (30,000), with possible restructuring in each.
Overall, while the job market in 2026 may not lack opportunities, workers will need to adapt to an environment driven by flexibility, project-based work and rapidly evolving skill requirements.
Emphasising continuous learning and specialised skills will be crucial for navigating a more fragmented labour landscape.
This was Berma's last interview with Sinar Daily. She died at her residence in Bandar Baru Bangi on Dec 30, 2025.
Known for her extensive contributions to education and community development, the 64-year-old Sarawakian was also a familiar and trusted voice who frequently shared insightful perspectives with Sinar Daily.