Stig Malm grew up in a workers' home in Sundbyberg, and started employment at the Swedish packaging firm Arenco at the age of sixteen.

[1] Malm resigned from his position as chairman of LO in 1993, after it was revealed that he had approved a number of generous severance packages to managers of the trade union owned construction company BPA.

After his resignation as chairman of LO, Malm was active as a local politician in Solna Municipality, north of Stockholm.

In 2004, Malm participated as a contestant in the popular TV game show På spåret together with comedian Babben Larsson.

[2] Prime Minister Stefan Löfven, who earlier was chairman of IF Metall, the successor organization of the Swedish Metalworkers' Union, remembered him as an "ideologically clear representative of the Swedish labour movement" and "an outspoken LO chairman who always defended the members' interests".