Employees in Malaysia can expect to earn more in 2023
Employees in Malaysia can look forward to a median 5.0% increase in their salaries next year, when salary increment is expected to return to pre-pandemic levels, according to a survey by Mercer.
Of all the industries surveyed by Mercer in its Total Remuneration Survey (TRS), the retail and consumer goods industries are expected to see the largest increase in salary increments in 2023, up from 4.5% and 4.6% respectively in 2022. Shared services and outsourcing (SSO), and high-tech industries are expected to maintain their 5.0% increase from this year, signalling the relative stability of both industries amidst inflationary pressures and supply chain issues.
Mercer surveyed 637 companies in Malaysia between April and June for its TRS across 17 industries, of which 98% are multinational companies.
Employees, except for those from the high-tech industry, can also expect higher bonus payouts this year, based on Mercer’s mid-2022 forecast. It said the retail industry is expecting the biggest jump to 12.6%, from 8.1% in 2021, followed closely by the consumer goods industry with an increase to 16%, from 13.7% the previous year.
Mercer said the SSO industry is forecasting the highest payout of 20.3%, exceeding high-tech’s 19.9%, which reflects SSO’s growth potential in Malaysia leading to greater competition for talent.
The median salary increment in Malaysia is also predicted to be above the 4.4% average in the Asia Pacific region, said Mercer. Particularly, the median salary increases across Asia reflect a divergence in pay progression between emerging and developed economies, with estimates as high as 7.1% in Vietnam to 2.2% in Japan.