Employers in Malaysia are using internships and short-term contracts to screen fresh graduates, expecting faster productivity amid cost pressures
PETALING JAYA: Recruitment agencies and employers say entry-level hiring is becoming more cautious, with companies tightening onboarding timelines and relying more on internships or short-term contracts as expectations for early productivity rise.
Association of Employment Agencies Malaysia president Datuk Foo Yong Hooi said employers are recalibrating how fresh graduates are assessed amid cost pressures and leaner staffing structures.
“Companies increasingly expect new hires to contribute within a relatively short onboarding period as employers operate under tighter cost structures, leaner teams and rising productivity pressures.
“As a result, some employers have moved away from traditional probation models.
“They are instead using internships or short-term contracts as extended screening tools before offering permanent roles, to better manage hiring risk and assess work readiness,” Foo told theSun.
“With shorter onboarding timelines, employers are placing greater emphasis on whether candidates can adapt quickly and demonstrate basic workplace readiness early on.
“This has led to more rigorous assessment at the early stages of recruitment, as companies seek to ensure candidates are able to meet role expectations before confirming permanent employment.”
From the recruiter’s ground-level perspective, Persatuan Insurans Krew dan Agensi Pekerjaan president Fiona Lau said mismatched expectations could complicate placements.
“We do encounter fresh graduates who question starting salaries of about RM3,000 after being told during their studies that they could earn RM4,000 or RM5,000 upon graduation.”
Lau said preferences around workplace structure and flexibility also influence hiring outcomes.
“Some candidates place a stronger emphasis on flexibility at work and may be less comfortable with highly structured environments or close supervision.
“From an employer’s perspective, this becomes part of the assessment process, as companies continue to look at readiness, responsibility and long-term commitment when making entry-level hiring decisions.
“In certain industries, employers feel they do not have the time or margin to provide extensive training or absorb early mistakes.
“It is important for fresh graduates to understand that entering the workforce requires adjustment, continuous learning and a willingness to build experience.
“Education plays a key role in preparing them for these realities.”
Malaysian Employers Federation president Datuk Dr Syed Hussain Syed Husman said employers do not expect fresh graduates to be fully job-ready on day one.
He acknowledged that business realities have narrowed onboarding windows.
“Employers recognise that fresh graduates are at an early stage of their careers, and do not expect them to be fully skilled or immediately productive.
“However, rising operational costs, lean staffing structures and productivity pressures mean there is a growing expectation for graduates to demonstrate stronger baseline work readiness.”
Addressing AI trends in the workforce, he said readiness expectations towards entry-levels have risen.
“AI and automation have not reduced demand for fresh graduates in Malaysia but they have raised the bar on readiness, adaptability and value creation.
