How to choose a recruitment agency or headhunter in Malaysia (2026)

Choose an agency that recruits regularly for your industry and level, and check that it holds a licence from the Department of Labour Peninsular Malaysia (JTKSM) under the Private Employment Agencies Act 1981. Fees for permanent hires are usually a percentage of the candidate's annual salary, payable on placement, with a replacement guarantee. Ask for the terms in writing before sharing any vacancy.

Last updated 31 October 2026 · See the Top 10 recruitment agencies & headhunters in Malaysia →

Typical costs in Malaysia (2026)

Item	Typical range / basis
Contingency placement fee	Commonly 15%–25% of annual salary
Retained executive search	Often 25%–35%, paid in stages
Contract staffing	Mark-up on salary, quoted per role
Replacement guarantee	Commonly 1–3 months

Editorial estimates from published rate cards and quotes. Always get written quotes.

Licence or registration to check

Private employment agencies need a licence from JTKSM under the Private Employment Agencies Act 1981 (amended 2017). Sabah and Sarawak have their own labour departments.

Checklist before you hire

Ask for the JTKSM licence number and check it
Agree the fee percentage and what counts as 'annual salary'
Confirm the replacement or refund guarantee in writing
Ask how candidates are screened and referenced
Check how candidate data is handled under the PDPA
Agree exclusivity terms, if any

Questions to ask

How many similar roles have you filled recently?
How do you source candidates for this level?
Do you charge candidates any fee?
What happens if the hire leaves early?
How long does a typical search take?

Red flags

No JTKSM licence
Charging job seekers fees outside what the law allows
Sending CVs without candidates' consent
Vague guarantee terms

Top-ranked recruitment agencies & headhunters right now

Asia Recruit — Shah Alam, score 39/100
CityRecruit — Johor Bahru, score 29/100
Talent Houz — Bayan Lepas, score 26/100

Full Top 10 → Get matched

FAQ

Do agencies need a licence?

Yes. Agencies that place workers need a JTKSM licence under the Private Employment Agencies Act 1981.

When is the fee paid?

For contingency hires, usually when the candidate starts or accepts the offer.

Can I use more than one agency?

Yes, unless you agree to exclusivity. Agree who 'owns' each candidate to avoid double fees.