Mercer’s Total Remuneration Survey 2023 indicates that Malaysians could get an average salary increase of 5.1% for 2024. The survey, conducted between April and June this year, collected data from 668 multinational corporations across 15 industries in Malaysia.
The group said the projected increase is a slight uptick from Mercer’s 5.0% forecast for 2023 and the 4.8% recorded the previous year, indicating a positive trend in salary growth.
Koay Gim Soon, Mercer Malaysia Market Leader, said, “Despite the moderate economic growth experienced in 2023 compared to the previous year, Malaysia’s labor market continues to show a positive outlook, which is reflected in the uptrend in salaries. The country’s GDP and individual sectors have largely rebounded to pre-pandemic levels, and multiple economic indicators point towards further growth in the coming year. ”
Malaysia’s projected median salary increment of 5.1% in 2024 falls slightly below the Asia average of 5.2%. This reflects the varying pay progression between emerging and developed economies in the region. India, Vietnam and Indonesia report the highest projected median salary increments in 2024 at 9.3%, 7.0% and 6.5% respectively, while Japan, Taiwan, and Hong Kong report the lowest at 2.6%, 3.8% and 3.9%. Other countries included in the survey are the Philippines at 5.7%, China at 5.2%, Thailand at 4.7%, South Korea at 4.4% and Singapore at 4.2%.
Energy and High-Tech industries lead salary increases in Malaysia for 2023
In 2023, the Energy and High-Tech industries have led salary increases in Malaysia, with median salary growth of 6.5% and 6.1% respectively. Sectors such as Consumer Goods and Manufacturing have seen a salary increment of 5.0%, similar to the Malaysia-wide median. However, the Life Sciences industry, which recorded the highest salary increase in 2022 at 7.7%, experienced a decrease to 4.3% in 2023. The Transportation Equipment sector has seen the lowest increase at 3.6% for 2023. These industry trends are projected to continue in 2024, with the industry-wide salary increase forecast averaging at 5.0%.
The survey also revealed consistent median values for 2023 bonus projections across industries in Malaysia, with an average multiple of 2.2 times the monthly base salary. While the Shared Service & Outsourcing sector maintained the highest bonus projection at 2.4 months, the Retail industry is expected to see a notable decrease from 2.5 months in 2022 to 1.5 months in 2023. This adjustment reflects a return to pre-pandemic bonus levels after Retail companies provided higher-than-normal bonuses in 2022 due to post-pandemic recovery.
