Study Shows More Malaysians Will Be Working on Contract in 2026

Malaysia’s job market is heading into one of its most interesting chapters yet. For a long time, contract jobs were seen as “second choice” positions, short-term roles you take while waiting for a permanent job to appear. That mindset is changing dramatically.

The newly released Robert Walters Salary Survey Malaysia 2026 shows a workplace that’s shifting faster than most people realise, shaped by AI, flexible contracts and a growing mismatch between what employers think people want, and what people actually want. The survey collected data from over 500 professionals and organisations in Malaysia from September to October this year.

Contract Hiring Isn’t the Backup Option Anymore

The survey reveals that 61% of Malaysian companies will be hiring contract talent in 2026, with 51% already exploring contract hiring and another 10% planning to jump in next year. Companies are doing this not just to save costs, but to stay agile, especially when they need specialised skills fast.

And here’s the twist; Malaysian professionals are warming up to it too. A strong 78% say they’re open to contract or project-based roles, as long as the terms are favourable. Many now see contracting as a way to learn faster, gain broader experience and avoid being tied to rigid corporate structures. Of course, a portion of the workforce still prefers the security of a permanent role. But the overall trend is clear; the gig mindset is entering corporate corridors.

Robert Walters Malaysia country manager Gan Hua Choon said there is a pressing need for organisations in the country to find ways to navigate talent challenges.

“Against a backdrop of subdued global economic growth, cost pressures and budget constraints, there is a notable, continued shift towards project-based and contract hiring from permanent roles.

“Professionals are also increasingly viewing contracting roles as a sound career strategy, one that offers the opportunity to gain diverse experience,” added Gan.

AI Adoption Is Surging

Malaysia is racing ahead with its AI ambitions, fuelled by a national goal of securing US$40 billion (RM169.2 billion) in AI and data centre investments by 2030. Organisations are moving quickly too: 52% have already adopted AI, and another 34% plan to do so in 2026.

At the moment, most companies are using AI for administrative and business support tasks, but the demand for deeper skills, from machine learning to data analysis, is rising sharply.

What’s interesting is how the workforce is reacting. Almost every professional surveyed is already using AI tools at work, and 75% believe AI will boost their career opportunities over the next decade.

Yet, nearly half feel they’re not being given enough training to stay updated. This is where the gap becomes obvious: companies are accelerating AI adoption, but employees are left to figure out the skills on their own.

In fact, 83% of organisations admit they’ll need to reskill or upskill up to half their staff within five years just to keep pace with technology. With professionals already taking proactive steps, from online courses to self-taught tools, Malaysia’s talent pool is clearly trying to stay ahead. The question is whether organisations can keep up.

Salaries and Benefits

One of the most intriguing findings in the survey is the widening gap in expectations. On paper, salary increments for existing employees seem aligned, 50% of professionals and 75% of companies expect a 3% to 6% bump in 2026.

But when it comes to new jobs, the disconnect becomes obvious. About 85% of job seekers want a 16% to 25% pay increase when switching roles, yet only 27% of employers are prepared to offer that.

The same misalignment appears in benefits. Professionals today value flexibility, remote work and meaningful work-life balance. Employers, meanwhile, still prioritise more traditional benefits like bonuses and medical coverage.

While both are important, people are clearly rethinking what matters most in their careers. Flexibility isn’t a perk anymore; it’s a baseline expectation.

A Tight Labour Market

Even with economic uncertainties, 85% of organisations plan to maintain or increase hiring over the next year. Yet both employers and professionals feel stuck. Companies say they can’t find talent with the right skill sets. Professionals say companies are too rigid with job requirements, demanding niche experience rather than appreciating transferable skills. It’s a stalemate, and 2026 will push both sides to rethink how they define “qualified talent.”

The latest Robert Walters survey makes one thing clear: Malaysia’s workforce is not just evolving, it’s transforming. Contract roles are becoming mainstream. AI adoption is accelerating much faster than training systems can support. Salary negotiations are growing more complex. And employees are increasingly prioritising wellbeing over traditional reward structures.

Source: here