The Tech Talent Crisis in Malaysia: Why Companies Can’t Find Engineers

A fintech founder in Kuala Lumpur posts a job for Senior React Developer on LinkedIn.

Expected: 50-100 applications

Reality: 8 applications. 2 are qualified.

She ends up hiring someone below her ideal bar. Six months in, he’s struggling with the codebase. She regrets the hire.

Sound familiar?

Tech recruitment in Malaysia is broken. Not because of a lack of talent, but because most companies don’t know where to find it, how to assess it, or how much to pay for it.


The Malaysia Tech Talent Landscape (2025)

The Numbers: Supply vs. Demand

Software Engineers in Malaysia:

  • Total pool: ~45,000 professional engineers
  • Active job-seekers: ~8,000 (18%)
  • Quality pool (3+ years): ~12,000
  • Top tier (5+ years): ~4,500

Demand far exceeds supply.

  • Tech job openings in Malaysia: 15,000+/year
  • Available qualified candidates: 8,000/year
  • Shortage: 7,000+ roles/year

For every engineer available, there are 2 companies competing for them.

Geographic Distribution

City% of Tech TalentCompetition
Kuala Lumpur45%Very High
Selangor (PJ, Subang)25%High
Penang15%Medium
Cyberjaya8%High
Johor Bahru4%Medium

Implication: KL has best talent but also most competition. Penang/JB have less competition but smaller pools.


Where to Find Tech Talent in Malaysia

Channel 1: LinkedIn (Best for Active Candidates)

Best for: Mid-level and senior engineers actively looking

How to use:

  1. Post job on LinkedIn company page
  2. Use LinkedIn Recruiter to search and message candidates
  3. Post content (attract passive candidates)
  4. Join groups (Malaysia engineers groups)

Cost: RM 5K-15K/month Quality: Medium-High Time-to-hire: 4-8 weeks Success rate: 30-50 applications per post

Channel 2: Referrals (Best Quality)

Best for: All levels, especially senior

How it works:

  • Ask your current team: “Know any good engineers?”
  • Offer referral bonus (RM 3K-10K depending on role)
  • Network at tech meetups, conferences

Cost: RM 3K-10K per successful hire Quality: Very High Time-to-hire: 2-4 weeks (faster) Success rate: 50%+ of referrals convert to offers

Channel 3: Tech Communities & Meetups

Malaysia Tech Communities:

  • KL JavaScript Meetup (1,200+ members)
  • Python Malaysia (800+ members)
  • React KL (500+ members)
  • iOS Dev Malaysia (300+ members)
  • Women Who Code KL (400+ members)

Cost: RM 500-2K per event (sponsorship) Quality: High Time-to-hire: 8-12 weeks Best for: Junior and mid-level engineers

Channel 4: Coding Bootcamps

Major Bootcamps in Malaysia:

BootcampFocusGraduates/YrPlacement
Coding Bootcamp KLFull-stack, UX20080%
Geek BootcampFull-stack, mobile15075%
Le Wagon KLWeb development8085%

How to recruit:

  • Partner with bootcamp (job post + hiring partnership)
  • Host demo day (meet graduates)
  • Offer internship (pipeline of talent)

Cost: RM 3K-10K per partnership Quality: Medium (fresh, need training) Best for: Scaling junior/mid-level team

Channel 5: Direct Outreach (LinkedIn, GitHub)

Best for: Senior and hard-to-find specialists

How it works:

  1. Find them on GitHub (search by contribution, language)
  2. Find them on LinkedIn (search filters)
  3. DM or email directly with personalized pitch

Cost: Low (time + maybe recruiter service) Quality: Very High Success rate: 5-10% of outreach converts

Channel 6: University Partnerships

Top Tech Universities in Malaysia:

UniversityStrengthGraduates/Yr
Universiti Malaya (UM)CS, engineering1,200
Universiti Kebangsaan (UKM)CS, IT800
Universiti Tunku Abdul Rahman (UTAR)Engineering, CS900
Monash University MalaysiaIT, business400

How to partner:

  • Post internship program
  • Host recruitment events
  • Sponsor competitions

Cost: RM 5K-20K per partnership Success rate: 30-50% of interns convert to full-time

Channel 7: Recruitment Agencies

AgencySpecialityTypical Fee
Weizhen RecruitersTech, startup, fintech20-25% of salary
Morgan McKinleyExecutive, corporate tech25-30% of salary
Michael PageTech, management20-25% of salary

Cost: High (RM 50K-70K fee for RM 200K engineer) Quality: High Time-to-hire: 4-8 weeks Best for: Executive roles, speed, budget available


Channel Comparison Table

ChannelCostQualitySpeedEffort
LinkedInMediumMedium-HighMediumMedium
ReferralsLowVery HighFastLow
CommunitiesLowHighSlowMedium
BootcampsLow-MediumMediumMediumMedium
Direct OutreachLowVery HighSlowHigh
UniversitiesLow-MediumMediumSlowMedium
AgenciesHighHighMediumLow

Best Strategy: Use 3-4 channels in parallel:

  • Ongoing: Referrals + LinkedIn + community
  • For speed: Add recruitment agency
  • For pipeline: Add universities + bootcamps

Role-by-Role Tech Recruitment Guide

How to Hire: Senior Software Engineer

What They Want:

  • Interesting technical problems
  • Architectural responsibility
  • Mentorship opportunity
  • Competitive salary (RM 180K-250K)
  • Equity (0.1-0.5% if startup)

Salary Benchmark (2025):

  • Mid-size company: RM 180K-220K + 15-20% bonus
  • Startup (Series B): RM 150K-200K + 0.1-0.3% equity
  • Enterprise: RM 200K-280K + 25-35% bonus

Interview Process:

  1. Phone screen (30 min): Verify experience
  2. Technical interview (60 min): Architecture + coding
  3. Team interview (60 min): Culture fit
  4. Offer & negotiation

How to Hire: Product Manager

What They Want:

  • Real influence (decision-making power)
  • Interesting product
  • Strong team
  • Compensation: RM 120K-180K + equity

Salary Benchmark (2025):

  • Startup (Series A/B): RM 100K-150K + equity 0.05-0.2%
  • Growth company: RM 150K-200K + 15-20% bonus
  • Enterprise: RM 180K-250K + 20-30% bonus

Interview Process:

  1. Phone screen (30 min)
  2. Product case study (45 min)
  3. Interview with founder/CEO (60 min)
  4. Reference check

How to Hire: UX/UI Designer

Where They Are:

  • Dribbble (design portfolio site)
  • Behance (Adobe portfolio platform)
  • LinkedIn
  • Design agencies
  • Design bootcamps

Salary Benchmark (2025):

  • Junior (0-2 years): RM 60K-80K
  • Mid-level (2-5 years): RM 85K-120K
  • Senior (5+ years): RM 120K-180K

Interview Process:

  1. Portfolio review (30 min)
  2. Design challenge (60 min)
  3. Team interview (45 min)
  4. Reference check

How to Hire: DevOps / Infrastructure Engineer

Unique Challenge: Very small pool in Malaysia.

Salary Benchmark (2025):

  • Mid-level (3-5 years): RM 130K-170K
  • Senior (5+ years): RM 170K-240K
  • Staff level (10+ years): RM 240K-350K

Options if can’t find locally:

  • Expand search to Singapore expats
  • Remote hiring (Singapore, India)
  • Training internal engineers into DevOps

Skill Assessment: How to Test Technical Abilities

Don’t Use LeetCode Challenges

LeetCode tests algorithm knowledge, not real job skills. A LeetCode crusher might be terrible at:

  • Writing clean, maintainable code
  • Building systems at scale
  • Debugging production issues
  • Collaborating with team

Use Real-World Assessments Instead

Assessment 1: Code Review Challenge (30 min)

  • Show them real code
  • Ask them to review it
  • What would they improve?

Assessment 2: System Design Challenge (60 min)

  • Give them a problem (e.g., “Design notification system”)
  • Walk through their thinking
  • Assess tradeoff reasoning

Assessment 3: Take-Home Project (48-72 hours)

  • Build a small feature (3-6 hours of work)
  • Submit code + explanation
  • Assess real coding ability

Assessment 4: Pair Programming Session (60-90 min)

  • Work together on a real problem
  • See communication and collaboration
  • Handle feedback in real-time

Recommendation: Use 2-3 Assessments

For junior/mid-level:

  • Code review + take-home + pair programming

For senior engineers:

  • System design + pair programming + reference check

Malaysia-Specific Hiring Considerations

Visa & Work Permits

ScenarioProcessTimelineCost
Malaysian citizenNothing needed0RM 0
Expat (new)Employment Pass (EP)4-8 weeksRM 3K-5K
Returning MalaysianNo visa needed0RM 0

Employment Pass Requirements (2025):

  • Monthly salary: RM 10K+
  • Qualification: Degree or specialized skill
  • Company must sponsor

Singapore Talent (High Leverage)

Why hire Singaporeans:

  • Higher skills (access to global talent)
  • Lower salary than Singapore (RM 180K vs. SGD 200K = RM 600K)
  • Lifestyle (KL more relaxed)
  • Cost of living lower

Success rate: 30-40% of Singaporeans open to Malaysia offer

Equity Considerations

StageTypical Equity for Senior EngineerSalary
Pre-seed1-2%RM 100K-130K
Seed0.5-1.5%RM 120K-150K
Series A0.1-0.5%RM 150K-180K
Series B+0.05-0.2%RM 180K-220K

Valuation transparency matters:

  • Engineers want to know company valuation
  • Clear vesting: 4-year vest, 1-year cliff is standard

Red Flags in Tech Recruitment

Red Flag 1: Engineer Can’t Explain Their Work

What it means: Probably didn’t actually build it. What to do: Ask for specific examples. Force them to go deep.

Red Flag 2: Arrogance + Lack of Depth

What it means: All talk, no substance. What to do: Pass. Hire humble mid-level over arrogant senior.

Red Flag 3: Badmouthing Previous Employers

What it means: In 6 months, you’ll be the “bad company.” What to do: Look for accountability, not blame.

Red Flag 4: No Questions About the Role/Company

What it means: Not genuinely interested. What to do: Pass. You want people excited about YOUR company.

Red Flag 5: Inconsistent Work History

What it means: Resume embellishment. Integrity red flag. What to do: Verify EVERYTHING with references.


Case Studies: How Malaysian Tech Companies Scaled

Case Study 1: TechCommerce (Fintech, RM 200M GMV)

Challenge: Scaling from 5 to 20 engineers in 12 months

Strategy:

  • First 5: Referrals + founder network (6 weeks)
  • Next 5: Agencies + referral bonus program
  • Final 10: Bootcamp partnerships + university recruiting

Outcomes:

  • 5 → 20 in 12 months
  • 95% retention at 12 months
  • Cost: RM 800K for RM 30M salary investment (2.7%)

Case Study 2: PayFast (Fintech, Series A)

Challenge: Solo founder needs 15 engineers

Strategy:

  • Pre-Series A: CEO direct outreach (40% response rate)
  • Post-Series A: Morgan McKinley agency
  • Competitive equity (0.5-1% for senior)

Outcomes:

  • 1 → 15 engineers in 3 months post-Series A
  • Average tenure 2+ years

Case Study 3: DesignHub (Design/SaaS, RM 50M ARR)

Challenge: Building first design team

Strategy:

  • First 2: Co-founder referrals
  • Next 3: Design community + portfolio review
  • Ongoing: Design bootcamp partnerships

Outcomes:

  • 2 → 8 designers in 12 months
  • 90% retention at 18 months

Key Takeaways

  1. Malaysia tech talent shortage is real. Use multiple channels.

  2. Referrals are your best source. Higher quality, faster, higher retention.

  3. Be transparent on salary. Post RM 180K-250K range for senior engineer.

  4. Use real assessments, not LeetCode. Code review, system design, take-home, pair programming.

  5. Equity matters for startups. Senior engineers won’t join at RM 150K without equity.

  6. Visa sponsorship is easier than you think. Employment Pass takes 4-8 weeks, costs RM 3K-5K.

  7. Build pipeline, don’t just hire. Partner with bootcamps/universities.

  8. Involve founder/CTO in hiring. Engineers want to know the vision.

  9. Multiple channels in parallel. Don’t rely on LinkedIn alone.

  10. Culture fit matters more than resume. Assess thoroughly.


Tech Recruitment Checklist

Foundation:

  • Define role clearly
  • Know your budget (salary, benefits, equity)
  • Know your timeline
  • Identify ideal candidate profile

Sourcing:

  • Post on 3+ channels
  • Identify 10 people for direct outreach
  • Set up referral program
  • Find 2-3 agencies to brief

Interview Process:

  • Create interview scorecard
  • Prepare technical assessments
  • Assign interview panel
  • Document interview questions

Post-Offer:

  • Sponsor visa if needed
  • Prepare onboarding
  • Assign buddy/mentor
  • Plan 30-60-90 day success plan

About Weizhen Recruiters

Weizhen Recruiters specializes in tech recruitment in Malaysia. We’ve helped 50+ tech companies scale their engineering teams.

Our approach:

  • Source talent from LinkedIn, referrals, communities, bootcamps
  • Real assessments (not LeetCode)
  • 4-8 weeks average time-to-hire
  • 90%+ retention rate at 12 months

Learn more about tech recruitment services →

Or book a free consultation to discuss your hiring needs.