Salaries in Malaysia increased by 5.0% in 2018, and are projected to increase by 5.2% in 2019, according to the Malaysia 2018 Salary Increase & Total Compensation Measurement Survey by Aon (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement, and health solutions.
These rates indicate that wages here are increasing faster than in Singapore (3.8% in 2018) and in-line with Thailand where salaries increased by 5.2% in 2018. Indonesia experienced a 7.6% rise in wages -- albeit with higher inflation and lower income base.
Amid volatility in global financial markets and oil prices, alongside the rising trade conflict between Malaysia's largest trading partners, China and the USA, Malaysia's economy remains resilient with a projected GDP growth of 5.0% this year.
Prashant Chadha, Managing Director, Talent, Rewards and Performance, Aon Malaysia & Philippines, said: "In the face of a growing economy and steady salary increases, employers must rework their compensation packages to ensure they can continue to attract and retain the best talent in Malaysia. An organisation's best performers are often able to command premium pay -- and ultimately, play key roles in driving strong business results."
Inside Industry 4.0: Fresh Graduates in Technology and Engineering Fields Most Valued by Malaysian Employers
According to the Aon survey, fresh graduates working in technology and engineering-related fields are enjoying a pay premium (above general industry average) of 12.1%, 21.3% and 23.0% respectively in the engineering, telecommunications and high-tech industries.
This is reflected in engineering and project design roles as well, which offered the highest starting salaries in the market for degree holders at over RM 3,500 per month. Meanwhile, fresh graduates working in IT services and e-commerce roles are paid 5.7% and 6.5% above the general industry average.
