Malaysian salaries increase by 5.2% in 2016: Aon Hewitt Malaysia

  • Malaysian employers continue to pay a premium for technologically-savvy fresh graduates.
  • High-tech industries paid fresh graduates 27% more than property and construction.

 

Malaysian salaries increase by 5.2% in 2016: Aon Hewitt Malaysia

 

MALAYSIAN salary increases declined by 0.4% to 5.2% in 2016, according to the 2016 Total Compensation Measurement (TCM) Survey study by Aon Hewitt.

With GDP growth steady at 4.2% but CPI at 1.8% higher in November 2016 than the same month in 2015, the decline in salary increases translates to real wages diminishing for the Malaysian workforce.

As a result, employers are pressured to rework their compensation packages to engage their talent more effectively. Performance-driven reward systems will also become the norm, and place a premium on an organisation's most effective performers.

Technologically-savvy fresh graduates more valued

Salary trends remain optimistic for fresh graduates as Malaysian employers are expected to continue paying a premium for jobs in high-tech and engineering-related fields.

The gulf in pay for specialised talent will also shape the way employee demographics are structured in the future of work.

Roles in engineering, R&D and project management offered the highest starting salaries to fresh graduates--more than RM3,500 per month--while fresh graduates in high-tech industries are paid 27% more than those in property and construction.

Throughout the nation, more than half of the fresh graduates entering employment earned less than RM2,500 per month.

Aon Hewitt Malaysia managing director Prashant Chadha said: "Fresh graduates, while inexperienced, are digital natives that possess relevant skills in today's market, and will be key to success in the future of work. Furthermore, these economically challenging times have placed great pressure on Malaysian businesses to redefine their talent needs. The workforce demographic is being reshaped year on year, and employers don't hesitate to pay for critical talent."

Employees in analytical and strategic roles earned top dollar

Other findings from the Aon Hewitt Malaysia 2016 TCM Survey include:

  • Strategic planners in managerial positions earned RM2,500 more than all other managers across functions in Malaysia -- demonstrating the commitment of Malaysian employers to innovative problem-solving and entrepreneurial acumen.
  • Finance managers in the high-tech industry were paid 16% more than the market midpoint, while HR managers received 21% more. This is further evidence that this industry as a whole more readily invests in their people as an invaluable asset to the organisation.

 
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