Moving from market entry to expansion

Malaysia has increasingly become a key market for multinational organisations looking to expand their operations in the APAC region. This is because of its fast-growing global business services (GBS) sector, a strong financial services market, and continued investment in digital technologies. In fact, the GBS sector in Malaysia was projected to grow to US$7 billion (RM28 billion) in revenue by 2025.

But establishing a presence in a new market and successfully scaling operations are two very different challenges.

Having worked with businesses operating in multiple geographies across APAC, I’ve seen how priorities change as organisations move from market entry to expansion.

Infrastructure, regional regulations, government support, sector maturity, and access to a skilled talent pool give way to a more complex set of considerations for businesses as they scale:

• How do you build the right mix of capabilities to support growth?
• How do you maintain consistent delivery standards as teams expand?
• And how do you scale without increasing cost, complexity or pressure on existing operations?

These are some of the most common conversations I’m having with clients. And while the specific challenges differ from company to company, a few come up consistently.

64% of hiring managers in Malaysia report facing moderate to extreme skills shortages

Malaysia’s ambitious growth potential is also intensifying demand and competition for specialist skills. For context, the Malaysian government has acknowledged it needs 50,000 engineers annually to meet demand, whereas universities are producing just 5000 per year. This highlights a crucial gap between ambition and capability.

However, the challenge isn’t just in numbers.

Companies looking to grow in the region need quality talent, at scale. They are increasingly looking for people who bring a mix of technical skills, industry knowledge, and AI-fluency to a role. But the shortage of skills means international organisations are vying for the same pool of candidates, causing an unsustainable salary war.

Salary ranges for senior tech roles in Malaysia, some crossing RM 700,000, surpassed Japan’s RM 630,000.

AI is providing an additional layer of complexity. AI-powered screening tools are making it possible for companies to screen large volumes of applicants, often with little to no human oversight. As a result, there is almost no guarantee that they’ll get the right capability once someone joins. On the other hand, the growing use of generative AI by candidates also raises questions about the efficacy of conventional screening processes.

This is where a structured workforce development model can have immediate, measurable impact.

At FDM, we address this through a four-month recruitment and training programme that acts as a quality gate, helping to validate both technical skills and professional readiness before consultants are deployed.

By the time consultants reach interview stage, clients can focus on project fit and business needs, instead of testing the basics.

We know the market really well and have strong ties with more than 16 top universities in Malaysia. We also have a strict process for finding and vetting local talent. This means we can give companies a steady supply of skilled workers that they would find hard to build on their own.

For international organisations scaling operations in Malaysia, this provides access to a more predictable pipeline of developed talent without having to manage the recruitment and training infrastructure internally.

Hiring talent is only half the battle won

Hiring the right people is the first step. But successful growth depends on retaining the hired talent. According to the 2025 Hays Asia Salary Guide, 56% of candidates look to change jobs within six months of joining because of better salary prospects or benefits packages elsewhere.

Recruitment specialists estimate around 30 hours of internal work to recruit one employee over four weeks, which suggests around 150 hours of hiring effort across five hires. Recruitment and onboarding costs in Malaysia can range from around RM 3500 to RM 25,000 per hire, depending on role seniority and specialism. This is because different jobs require different levels of expertise and experience, which can affect how much it costs to hire someone.

Top skills companies in Malaysia are hiring for

Through multiple conversations with clients across financial services and global business services organisations, we’re seeing a rising demand for skills in data engineering, business intelligence, IT operations, service management and financial crime compliance.​

In particular, demand is high for:

• 24×7 IT Operations support
• Service management
• Data engineers
• AML/KYC/Compliance talent for firms operating in highly regulated industries
• Professionals with a blend of financial domain knowledge and technical skills like Excel, SQL and Python

These capabilities now include an additional layer of demand for AI fluency and professional skills like stakeholder management, communication, and leadership. But what most organisations lack is the time to onboard new employees that allows them the requisite duration to get properly embedded in the business. This creates further difficulties in sourcing talent that matches all these requirements.

Follow the sun support

International businesses in Malaysia operate across multiple regions and time zones. Gaps in support can delay incident response, prolong disruption, and affect trading activity, service continuity, customer trust, and competitiveness.

A key challenge is finding operational coverage that complements teams across North America, Europe, and Asia Pacific. So, when one team logs off, another one logs on to ensure 24×7 support.

But expansion can quickly increase the pressure on internal teams. Attracting and assessing talent, onboarding new hires, developing specialist skills and providing ongoing support all require time and resources. Multiply that across different capabilities and the operational budget can suddenly start escalating.

FDM’s full-managed service gives clients the ability to use skills and resources for both long-term projects and short-term needs, helping them to get the support they require.

Scaling in Malaysia with stronger hiring control

A global software technology provider needed data engineering capability in Malaysia to support anti-fraud ​and financial crime projects for banks, government organizations, and other regulated clients. ​

Malaysia seemed like a great place to grow, but getting the right people on board was tough at first. High application volumes didn’t mean consistent technical quality, while AI-assisted assessments and copied work made it harder for hiring teams to separate real capability from strong-looking applications. Engineering leaders spent a lot of time reviewing candidates who weren’t suitable for regulated project work. ​

FDM assessed candidates, trained them in the skills the work required, and prepared them for client delivery before interview. This reduced time spent reviewing unsuitable candidates and gave project leaders greater confidence in the people joining their teams. ​

The consultants supported anti-fraud and financial crime delivery across data ingestion, transformation, testing, scripting, configuration, data quality, and downstream analytics. ​

Across five hires, the model avoided around 150 hours of estimated internal hiring effort. ​

Access the full case study here.

For global businesses looking to scale technology and operations teams in Malaysia, success will be measured by building the right capabilities without losing control, quality, retention or speed.

If you’re already operating in Malaysia and considering how to scale your operations, I’d be interested to hear what challenges you’re facing.

Contact our team or get in touch with me directly.

Franki Vambanu, Sales Manager, FDM Singapore

Franki is a technology sales leader who is passionate about connecting people and driving business outcomes. Based in Singapore, he has a focus on helping organisations in Southeast Asia meet their goals through strategic partnerships and innovative talent solutions.

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