This chapter continues from the previous edition by highlighting the challenges that Malaysia faces in light of stiff competition and shifting global human mobility - the by-products of globalization. It begins with a discussion of the historical development of Human Resource Management (HRM) in Malaysia, followed by the role of Human Resource (HR) in most companies, key factors in determining HRM practices and policies and key challenges facing HRM in Malaysia. HRM is currently a rapidly growing field in Malaysia. Indeed, since the late 1980s Malaysian managers have increasingly used the term HRM instead of personnel management. The human resource ministry plays a key role in shaping HRM policies and practices in Malaysia. The government is responsible for developing labour administration policy, promoting workers' welfare (especially bumiputras) and promoting industrial harmony. The chapter concludes with a short case study that showcases HR practices in Malaysia with a discussion of how these practices differ from HR practices around the world.