Aliya Syafa' Binti Azahar
Manager, Delegations Services
+60 3 9235 1817 aliya.azahar@malaysia.ahk.de
Introduction
The Mercer’s annual Total Remuneration Survey (TRS), which polled 668 multinational corporations (MNCs) across 15 industries in Malaysia, reported that the salary increment of Malaysian employees is projected to reach 5.1% in 2024, upon demonstrating a steady upward trend from 4.8% to 5.0% in 2022-2023. Energy and High-Tech industries lead salary growth, with increases of 6.5% and 6.1% respectively in 2023, Mercer reported.
A recent general projected salary increments for 2024 survey conducted by MGCC across 35 companies has shed light on the planned salary increments for the upcoming year, providing valuable insights into the trends and patterns shaping the workforce compensation landscape. The participating sectors include manufacturing/production, services, chemical, logistics, computer/IT, education, and construction/building/engineering.
| Sector | Number of companies |
|---|---|
| Manufacturing/Production | 10 |
| Services | 11 |
| Chemical | 4 |
| Logistics | 3 |
| Computer/IT | 3 |
| Education | 2 |
| Construction/Building/Engineering | 2 |
In addition, this survey measured the projected salary increment across four sizes of company based on the number of employees.
| Number of employees | Number of companies |
|---|---|
| Less than 10 employees | 3 |
| 10-50 employees | 12 |
| 50-100 employees | 10 |
| More than 50 employees | 10 |
MGCC Planned Increment 2024 Outlook
Planned Salary Increment - Percentage of companies surveyed
The survey reveals a varied landscape of planned salary increments for 2024 among 35 member companies of MGCC. A closer look at individual companies shows that 4 companies plan no increase, 1 aims for below 2.5%, 14 foresee increments between 2.5% and 5%, 11 anticipate growth between 5% and 7.5%, 3 expect growth between 7.5% and 10%, and 2 anticipate increments between 10% and 15%.
Planned Salary Increment - Number of companies
Planned Salary increments by industry
Planned Salary Increment - By Industry
The survey also breaks down salary increment plans by industry. Notably, the construction/building/engineering sector is evenly split between 50% minimal growth and 50% high growth. Education follows a contrasting pattern with 50% indicating no increment and the remaining 50% foreseeing moderate growth. In the computer/IT sector, 33% expect minimal growth, while 67% project moderate growth. Logistics companies unanimously anticipate minimal growth. The chemical industry exhibits a split with 75% expecting minimal growth and 25% foreseeing moderate growth. The services sector demonstrates varied expectations, with 18% indicating no increment, 27% foreseeing minimal growth, 46% projecting moderate growth, and 9% anticipating high growth. Manufacturing/production companies show a mix with 10% expecting no increment, 40% foreseeing minimal growth, 40% projecting moderate growth, and 10% anticipating high growth.
Planned Salary Increment - By Company Size
Company size also plays a role in determining salary increment trends. Among companies with more than 50 employees, 10% expect no increment, 40% foresee minimal growth, and 50% anticipate moderate growth. In the 50-100 employee category, 10% expect no increment, 70% foresee minimal growth, and 20% anticipate moderate growth. For companies with 10-50 employees, 17% expect no increment, 25% foresee minimal growth, 41% anticipate moderate growth, and 17% anticipate high growth. In companies with less than 10 employees, the majority (67%) anticipate moderate growth, while 33% foresee minimal growth.
Looking beyond salary increments, the survey also explores the hiring intentions of the participating companies. An encouraging 77% of the participating member companies plan to hire new staff in 2024. Among these, 27 companies aim to hire local staff, 10 companies plan to hire expats, and 4 companies have intentions to hire foreign workers. This positive hiring outlook reflects a sense of optimism and growth within these industries.
In conclusion, the detailed analysis of salary increments projections for 2024 based on the responses of 35 companies offers valuable insights into the prevailing trends. The spectrum of growth expectations underscores the diverse strategies adopted by businesses across various sectors. As companies navigate the evolving economic landscape, this information becomes instrumental in making informed decisions regarding compensation structures and human resource planning. Employees and employers alike can use these findings to align their expectations and strategies with the prevailing trends in the broader business community.