Malaysia Core HR Software Market | Revenue, Analysis, Companies, Growth, Forecast, Size, Industry, Trends, Share & Value | Market Forecast By Component, By Organization Size, By Deployment Type, By Software, By Services, By Vertical And Competitive Landscape

Malaysia Core HR Software Market has seen a consistent expansion in recent years, propelled by a rise in Grade A offices and the widespread uptake of advanced IT infrastructure by SMEs and large enterprises. These elements have driven the need for core HR software solutions. Additionally, Malaysian companies are prioritizing digital transformation efforts, prompting core HR service providers to deliver comprehensive digital solutions. The government has played an active role in supporting technological progress through initiatives such as the Malaysia Digital Economy Blueprint 2021-2030, which aims to expedite digital adoption and cultivate a digitally proficient workforce.

Moreover, significant investments in the manufacturing sector over recent years have generated numerous job opportunities within the industry. For instance, in 2022 and 2023, the sector offered 76,093 and 73,939 jobs respectively in the country, thus driving the demand for core HR software within this sector.

Malaysia Core HR Software Market Overview

Malaysia Core HR Software Market Size is anticipated to grow at a CAGR of 9.7% respectively during 2024-2030. The 'Digital Investment Future5 (DIF5) Strategy', launched by MDEC in 2021, targets attracting around $12 billion in investments into the digital economy by 2025. This includes enticing 50 Fortune 500 technology companies and creating 50,000 high-value job opportunities. Also, Knight Frank Malaysia predicts that by 2026, the pipeline of office projects in Kuala Lumpur and Selangor would comprise a total area of 2.62 million square feet.

Therefore, establishing a potential platform for the adoption of core HR software in the years ahead. Moreover, the New Industrial Master Plan 2030 (NIMP) targets enhancing the manufacturing GDP, striving for a contribution of approximately $124 billion by 2030, representing a year-on-year growth rate of 6.5%, which marks a 61% increase from its 2022 contribution. In tackling skills shortages, NIMP 2030 is anticipated to elevate employment by 2.3% annually from 2023 to 2030, consequently generating 3.3 million new jobs.

Malaysia Core HR Software Market Share

Thus, with the ongoing growth of the Malaysian economy and the increasing adoption of digital transformation by businesses, the core HR software market is set to experience substantial revenue growth in the forthcoming years. Elements such as the emergence of high-quality office spaces, governmental backing for digital endeavors, and rising requests for comprehensive HR solutions are anticipated to fuel the market's expansion.

Market Segmentation by Component

Services hold the highest share compared to software in the HR software industry due to their critical role in ensuring the effective deployment, customization, and utilization of HR technologies. Implementing HR software involves complex processes that require expert knowledge to tailor the system to an organization’s unique needs, integrate it seamlessly with existing systems, and ensure it aligns with business objectives, which increases the costs.

Market Segmentation by Organization Size

OEMs should focus on large enterprises in the upcoming years, as they are expected to generate the majority of revenues due to the significant presence of large enterprises in the country.

Market Segmentation by Deployment Type

The cloud segment is expected to experience the highest growth rate in the coming years, primarily due to the market leader, SAP, intends to cease management support for on-premises software, encouraging companies to migrate to cloud solutions. Consequently, there is an increasing need for companies to adopt cloud-based software.

Market Segmentation by Software

In terms of volume share, Payroll & Compensation Management software dominated the core HR software market in Malaysia as they are fundamental aspects of HR management, crucial for ensuring employees are paid accurately and on time, and for managing benefits and compensation packages.

Market Segmentation by Services

Implementation services accounted for major revenue share in Malaysia core HR software market due to its high initial one-time cost, driven by its crucial role in ensuring the successful adoption of complex HR systems. These services demand expertise in HR processes, software configuration, and data migration, guaranteeing seamless adoption and functionality.

Malaysia Core HR Software Market Segmentation

Market Segmentation by Vertical

Commercial offices acquired the highest revenue share in Malaysia's core HR software market as these offices often have complex organizational structures and a significant number of employees, making the management of human resources a top priority. Consequently, they require comprehensive HR solutions to handle various aspects such as pension management, payroll, and compliance.

Key Attractiveness of the Report

• 10 Years Market Numbers.
• Historical Data Starting from 2020 to 2023.
• Base Year: 2023
• Forecast Data until 2030.
• Key Performance Indicators Impacting the Market.
• Major Upcoming Developments and Projects.

Key Highlights of the Report

• Malaysia Core HR Software Market Overview
• Malaysia Core HR Software Market Outlook
• Malaysia Core HR Software Market Forecast
• Historical Data and Forecast of Malaysia Core HR Software Market Revenues, for the Period 2020-2030F
• Historical Data and Forecast of Malaysia Core HR Software Market Revenues, By Component, for the Period 2020-2030F
• Historical Data and Forecast of Malaysia Core HR Software Market Revenues, By Organization Size, for the Period 2020-2030F
• Historical Data and Forecast of Malaysia Core HR Software Market Revenues, By Deployment Type, for the Period 2020-2030F
• Historical Data and Forecast of Malaysia Core HR Software Market Revenues and Volume, By Software, for the Period 2020-2030F
• Historical Data and Forecast of Malaysia Core HR Software Market Revenues, By Services, for the Period 2020-2030F
• Historical Data and Forecast of Malaysia Core HR Software Market Revenues, By Verticals, for the Period 2020-2030F
• Market Opportunity Assessment
• Market Drivers and Restraints
• Market Trends
• Competitive Benchmarking
• Key Strategic Recommendations

Market Scope and Segmentation

The report provides a detailed analysis of the following market segments:

By Component

• Software
• Services

By Organization Size

• SMEs
• Large Enterprises

By Deployment Type

• On-Premises
• Cloud

By Software

• Benefits And Claims Management
• Payroll And Compensation Management
• Personnel Management
• Learning Management
• Pension Management
• Compliance Management
• Succession Planning

By Services

• Integration Services
• Maintenance And Support
• Consulting
• Implementation Service

By Vertical

• Commercial Offices
• Government
• Manufacturing
• Wholesale Retail
• Healthcare
• Transportation And Logistics
• Telecom And Information Technology (IT)
• Banking, Financial Services, And Insurance (BFSI)
• Others