MALAYSIAN businesses are taking a cautious approach to hiring and investment as cost pressures persist, with the domestic market emerging as their main source of growth, a new survey found.
Three-quarters of Malaysian businesses surveyed identified the domestic market as their leading growth opportunity, the highest proportion recorded among the six ASEAN markets covered.
The findings, from The Great Restructuring: ASEAN Consumer & Business Pulse Survey 2026 by Reeracoen Group and Rakuten Insight, point to companies concentrating on existing operations while taking a more selective approach to expanding their workforce.
Some 36% of businesses said they were hiring selectively, while only 7% reported increasing their headcount.
Reeracoen Malaysia country manager Yohei Yagi said employers were still recruiting for critical positions but were becoming more deliberate in deciding where to add staff.
“Hiring decisions are becoming more focused and aligned with longer-term business priorities,” he said.
Investment plans reflected a similar degree of caution. While 46% of businesses said they were maintaining their current level of investment, 16% said they were increasing spending.
The survey also found Malaysian consumers adjusting their spending as household costs rise.
About 88% of consumers surveyed said they were spending more cautiously, with food prices cited by 64% as a factor affecting their spending. Fuel and transport costs were cited by 46%, while 38% pointed to household bills.
More than half, or 54%, said they were looking for additional sources of income, while 41% said they were putting more money into savings.
Rakuten Insight country director for Malaysia and Thailand Collin Leow said the findings reflected adjustments by both businesses and households to changing economic conditions.
“Businesses are placing greater emphasis on domestic opportunities and operational discipline, while consumers are adjusting their spending and financial priorities,” he said.
The survey covered six ASEAN markets and examined how businesses and consumers were responding to changing economic conditions. - September 24, 2026
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