• Overall median salary increments projected to hit 5% in Malaysia next year, up from 4.8% this year
• Dissatisfaction with pay a key driver of higher voluntary attrition rates in 2022
• Greater workplace flexibility and holistic wellness support are critical to attract and retain talent
Employees in Malaysia can look forward to a median 5% increase in their salaries next year, according to Mercer’s annual Total Remuneration Survey (TRS) 2022. The TRS polled 637 organisations – of which 98% are multi-national companies (MNCs) – across 17 industries in Malaysia between April and June this year.
This return to the pre-pandemic level seen in 2019 reflects growing optimism among employers about their business and overall market outlook. Malaysia’s Gross Domestic Product (GDP) is estimated to grow by 6.4% this year, exceeding pre-pandemic levels of 4.4% in 2019. Malaysia’s median salary increment is also above the Asia Pacific average of 4.4%. Across Asia, the overall median salary increases 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, the lowest in the region.
Koay Gim Soon, Mercer’s Career Business Leader for Malaysia, said, “With Malaysia rebounding from the pandemic, companies, especially the MNCs, are more certain about the future and are ramping up their business activities to cope with increased demands. Nevertheless, larger firms will need to keep abreast of the latest reward trends and developments to ensure they have a relevant and reliable talent pool. Small to medium enterprises (SMEs), which have relatively fewer resources, on the other hand, need to double down on their business priorities while ensuring that their compensation and benefits packages are competitive in order to attract and retain the right talent.”
