SHAH ALAM — Malaysians should realistically anticipate a more varied and adaptable job market in 2026, instead of one that is consistently tight or sluggish.
President of the Malaysian Employers Federation (MEF), Datuk Dr Syed Hussain Syed Husman, stated that conventional, low-value positions are expected to stay limited and more stringent as automation, digital transformation, and cost reduction take over repetitive duties.
He mentioned that employers, dealing with increased operational expenses and international economic instability, will be cautious when it comes to expanding their permanent workforce and will maintain stricter control over salary increases.
The employment landscape is expected to grow more adaptable, with increased use of contract and project-oriented jobs, as well as blended and virtual work setups, focusing more on skills rather than just formal qualifications.
“This indicates employers’ requirement to remain flexible in addressing fluctuating demand, while continuing to obtain expert skills when necessary,” he said to Sinar Daily.
He mentioned that the key characteristic will be division, as chances will not be equally spread among industries, regions, or levels of expertise.
He mentioned that expansion is anticipated in digital services, industries focused on green initiatives and sustainability, advanced manufacturing, healthcare, logistics, and specific professional services, whereas sectors that rely significantly on low-skilled workers or have limited local demand might experience slower employment growth.
This indicates that the 2026 job market will value flexibility, ongoing skill development, and movement between positions, instead of depending on one employer or position for an extended period.
“Employees will find job security more dependent on their employability. For employers, the challenge lies in maintaining flexibility while ensuring fair employment practices and talent growth to keep a reliable workforce,” he stated.
He mentioned that job creation will vary among industries, affected by financial constraints, technology usage, regional needs, and government policies.
He mentioned that the main areas of growth are:
Services powered by digital and technological advancements – Positions in data analysis, implementation of artificial intelligence, security measures, software creation, online promotion, and technical assistance.
Economic activities focused on green initiatives and sustainability – such as renewable energy, energy conservation, environmental management, Environmental, Social, and Governance reporting, and eco-friendly production processes.
Advanced production and electrical and electronic fields – Demanding more technical expertise.
Healthcare and care industry – Driven by an aging population, increasing attention to wellness, and growth in the private sector.
Logistics, distribution, and specific services – Influenced by the expansion of online shopping, local trade, and the shift in supply chain strategies.
On the other hand, he mentioned that industries that depended significantly on unskilled workers and encountered increasing wage, regulatory, and running expenses were expected to undergo changes.
He mentioned that repetitive tasks, whether physical or administrative, will be more frequently handled by machines. He highlighted that the main issue was not a lack of job opportunities, but a gap between the skills people possess and the needs of the evolving job market.
He mentioned that proactive reskilling, enhanced cooperation between industries and educational institutions, focused support for small and medium enterprises, and responsible workforce planning are essential.
Syed Hussain mentioned that although starting a business can provide options for workers who have lost their jobs, it is not without risks.
He mentioned that the challenges involved were underestimating capital requirements, cash flow problems, competition, and deficiencies in business management abilities.
Although starting a business could be one of the ways to help workers who have lost their jobs, he mentioned that it should not be considered as a guaranteed support system.
Individuals who are self-employed frequently do not have access to social security, health insurance, or financial safeguards.
“Entrepreneurship is most effective when pursued voluntarily, with availability of training, guidance, and financial support, and preferably while having other sources of income.” he said.
He mentioned that reskilling before retrenchment, redeploying employees, providing transitional assistance, and communicating effectively about the opportunities in self-employment are crucial.
He mentioned that increasing urban living expenses could lead Malaysians to reconsider the conventional city-based work approach.
Urban hubs continue to be essential for high-value sectors, company offices, and specialized services, yet rising expenses for housing, transportation, child care, and everyday items diminish actual income improvements.
“Enhanced digital connectivity and the expansion of economic activities outside urban areas are making non-urban living more viable, although job variety and opportunities for career growth might be restricted in some regions. Certain high-skill or specialized positions still necessitate a physical presence in city centers,” he mentioned.
In the meantime, former president of the Malaysian Trades Union Congress, Datuk Abdullah Sani Abdul Hamid, stated that if job cuts happen, they should not be considered as the final outcome for employees, but rather as a stage where readiness and assistance are essential.
He mentioned that starting a business could serve as a feasible option for employees who have lost their jobs, as long as they receive adequate preparation and assistance, highlighting that layoffs are frequently connected to investment movements and the overall economic situation.
Organizations have already been established to assist affected workers via business opportunities.
Cities still provide greater job prospects compared to rural regions, which is why numerous people keep moving there.
“This is also the reason why farming needs to be made more appealing for the younger generation,” he stated.
He mentioned that promoting the stay of individuals in rural regions necessitates more robust policy guidance, guaranteeing that long-term employment prospects are available beyond urban centers.