Salaries in Malaysia are projected to increase by 5% across all industries in 2025, and close to a quarter of companies plan to raise headcount next year, a survey showed.
Industries like energy and shared services are leading in base salary offerings, human resources consulting firm Mercer said in a statement, following the release of its annual Total Remuneration Survey. Certain job roles are also seeing a “notable shift” in demand and pay, the firm highlighted.
The talent market is competitive, with 70% of Malaysian companies intending to adjust their remuneration strategies next year, Mercer said.
The survey involved more than 680 companies in Malaysia, in industries including technology, consumer goods, manufacturing, retail, chemical, life sciences, retail and wholesale, energy, and shared services. The survey was conducted between April and June this year.
The data covers multinational corporations, and the actual salary increase, or premiums are influenced by the companies, team and individual performance.
The projected salary increase for 2025 in Mercer’s survey matches the rate in 2024’s budget. The expected pay increment in Malaysia is lower than the 6.1% rise in Indonesia but higher than Singapore’s 3.8% rate.
Hiring intentions, however, have weakened compared to last year, with the majority of the companies surveyed planning to keep their headcount levels steady, and only 24% of respondents plan to expand their workforce, Mercer added.
Malaysia’s labour market is shifting towards a “more strategic and employee-centric approach, prioritising competitive compensation packages, diverse incentive structures, flexible work arrangements, and tailored benefits,” the firm noted.
“The key is flexibility” in adapting to the changing demands of their workforce, said Mercer Malaysia market leader Koay Gim Soon.
“Growth jobs” such as in cloud computing, electrical instrumentation and control engineering are seeing salary growth alongside rising demand, the firm said.
Roles such as those in cybersecurity architecture, project controls engineers, and enterprise architects command a premium in pay, highlighting “the increasing value placed on specialised skills in a competitive environment,” Mercer noted. – The Edge Malaysia
