Kuala Lumpur, 10 December 2024 — Mercer, a business of Marsh McLennan (NYSE: MMC) and a global leader in helping clients realize their investment objectives, shape the future of work and enhance health and retirement outcomes for their people, released today the findings from its annual Total Remuneration Survey (TRS). The survey reveals that overall salaries in Malaysia are projected to increase by 5.0% across all industries in 2025 and that close to a quarter (24%) of organizations are planning to increase headcount next year, indicating a demand for talent.
More than 680 companies in Malaysia were surveyed in a range of industries including technology, consumer goods, manufacturing, retail, chemical, life sciences, retail and wholesale, energy, and shared services.
Koay Gim Soon, Mercer Malaysia Market Leader, said: “As we navigate through a dynamic economic landscape, it is essential for employers to recognize the evolving nature of the workforce and the diverse needs of individuals. By staying attuned to the market landscape and the pulse of their employees, employers can remain resilient and thrive amidst competitive pressures and market disruptions. The key is flexibility, as it enables organizations to adapt to the changing demands of their workforce while maintaining the priorities of the business.”
Shifting Labor Market Dynamics
The Malaysia labor market is shifting towards a more strategic and employee-centric approach, prioritising competitive compensation packages, diverse incentive structures, flexible work arrangements and tailored benefits that addresses the different needs of their workforce. The median voluntary turnover rate of 11.8% highlights the competitive landscape of the job market, prompting employers to enhance their retention strategies. With 70% of Malaysia companies intending to adjust their remuneration strategies next year, this further underscores the competitive talent market.
Industry Pay Premiums and Hot Jobs
Industries like Energy and Shared Services continue to thrive, leading in base salary offerings. This is largely fueled by the high demand for skilled professionals in these fields, driven by ongoing investments and growth opportunities. Companies in these sectors often have the financial resources to offer competitive salaries, which helps them attract top talent. Conversely, industries like retail and logistics are exploring innovative strategies to enhance their compensation packages, often incorporating allowances and non-monetary benefits to effectively attract and retain talent.
Beyond industry-level trends, specific job roles are also seeing notable shift in demand and pay.
Growth jobs such as Cloud Computing, Electrical Instrumentation and Control Engineering experiencing positive salary growth alongside rising demand. Additionally, roles such as Cybersecurity Architecture, Project Controls Engineers and Enterprise Architects command a premium in pay, highlighting increasing value placed on specialized skills in a competitive environment.
It is important to note that the surveyed data is primarily multi-national corporations, and the actual salary increase, or premiums are influenced by the organization, team and individual performance
