HR hiring surge in Philippines and Malaysia, dramatic decline in Singapore

SOUTHEAST ASIA: The Philippines and Malaysia witnessed a notable surge in hiring activity, with significant growth in HR and administration roles. According to the latest foundit Insights Tracker (fit) report featured in an HRD Asia article, both countries have seen impressive year-on-year growth in their hiring trends. Singapore, on the other hand, has suffered a downturn in hiring activity, particularly in HR roles.

Philippines sees 47% surge in hiring activity

The Philippines led the charge with an impressive 47% growth in hiring activity throughout 2024. The increase was driven mainly by retail, outsourcing, and infrastructure expansions, fuelling demand for talent across multiple industries. As companies in the country scaled their operations, there was a notable prioritization of expanding HR functions to manage workforce growth better, streamline operations, and enhance employee engagement.

The country’s retail sector, in particular, saw a massive 75% year-on-year increase in hiring as businesses rushed to meet the growing consumer demand. Other industries that experienced a boost included hospitality (30%), marketing, and communications (43%), while software, hardware, and telecom saw a slight dip of 8%. Overall, the Philippines posted a robust 20% year-on-year growth in hiring activity.

Malaysia follows with 28% growth in HR hiring

Malaysia also reported a positive shift in hiring, with a 10% year-on-year rise in overall hiring activities. Notably, the country’s HR functions saw a 28% increase, highlighting a growing emphasis on human capital management. Key sectors driving this growth included retail, which surged by 85%, followed by hospitality (42%), software, hardware, and telecom (25%), and marketing and communications (36%).

The country’s digital momentum, especially retail and hospitality, has driven substantial hiring growth. As businesses continue to embrace digital transformation, Malaysia has leveraged the digital landscape to bolster its workforce and create new job opportunities.

Singapore experiences decline amid technological shifts

While the Philippines and Malaysia thrived, Singapore saw a significant decline in hiring activity, with a 12% drop in HR and administration roles. According to the report, this decrease can largely be attributed to organizations in the country shifting towards automation and outsourcing administrative tasks to optimize costs.

The decline was most evident in Singapore’s hospitality sector, where hiring dropped by 15% due to limited promotional activities, tighter visa regulations, and a shift towards technological solutions such as AI and automation. Other sectors, such as software, hardware, and telecom, faced a staggering 45% reduction in hiring activity. This trend reflects a broader redefinition of industry roles driven by technological advancements and efficiency.

Suresh, CEO of foundit, noted that businesses that balance embracing technology-driven strategies and focusing on employee well-being will be best equipped to navigate these changes and sustain long-term growth. “The evolving employment landscape across Southeast Asia is shaped by key factors such as digital adoption, workplace dynamics, and shifting compensation strategies,” he said.

As the region adapts to rapid technological advancements, these hiring trends underscore the growing importance of aligning talent strategies with evolving market demands.