KUALA LUMPUR, MALAYSIA - Media OutReach - 18 December 2018 - Salaries in Malaysia increased by 5.0% in 2018, and are projected to increase by 5.2% in 2019, according to the Malaysia 2018 Salary Increase & Total Compensation MeasurementTM Survey by Aon (NYSE: AON), a leading global professional services firm providing a broad range of risk, retirement, and health solutions.
These rates indicate that wages here are increasing faster than in Singapore (3.8% in 2018) and in-line with Thailand where salaries increased by 5.2% in 2018. Indonesia experienced a 7.6% rise in wages -- albeit with higher inflation and lower income base.
Amid volatility in global financial markets and oil prices, alongside the rising trade conflict between Malaysia's largest trading partners, China and the USA, Malaysia's economy remains resilient with a projected GDP growth of 5.0% this year.
Prashant Chadha, Managing Director, Talent, Rewards and Performance, Aon Malaysia & Philippines, said: "In the face of a growing economy and steady salary increases, employers must rework their compensation packages to ensure they can continue to attract and retain the best talent in Malaysia. An organisation's best performers are often able to command premium pay -- and ultimately, play key roles in driving strong business results."
Inside Industry 4.0: Fresh Graduates in Technology and Engineering Fields Most Valued by Malaysian Employers
According to the Aon survey, fresh graduates working in technology and engineering-related fields are enjoying a pay premium (above general industry average) of 12.1%, 21.3% and 23.0% respectively in the engineering, telecommunications and high-tech industries.
This is reflected in engineering and project design roles as well, which offered the highest starting salaries in the market for degree holders at over RM 3,500 per month. Meanwhile, fresh graduates working in IT services and e-commerce roles are paid 5.7% and 6.5% above the general industry average.
Employees in Analytical, Strategic and Specialist Roles Earned Top Dollar
The Aon survey also found that employers were committed to professionals with specialist skills sets, such as legal managers. They are also looking at key attributes such as innovation, critical problem-solving, and strong business acumen -- as demonstrated by the pay premiums in the engineering and tech-related industries.
16% more than market average
Engineering & Tech
7% more than market average
Planning and business development managers
9% more than market average
Rahul Chawla, Practice Lead, Talent, Rewards & Performance, Aon Malaysia, said: "As the country's economy grows, employers must look to align their rewards practices with those of developed economies. Performance-driven rewards systems have become the norm, and productivity bonuses, sales incentives, and long-term incentives (LTI) are increasingly prevalent among Malaysian employers. These must be backed by fair performance assessment processes and robust corporate governance."
About the Aon Malaysia 2018 Salary Increase & Total Compensation MeasurementTM Survey
This is an annual nationwide survey on how organisations are addressing projected salary budgets, variable pay and cost-saving initiatives. It contains data on key changes in employee compensation in 2018 and projections for 2019. This year, 320 employers participated in the survey in Malaysia.
Aon plc (NYSE:AON) is a leading global professional services firm providing a broad range of risk, retirement and health solutions. Our 50,000 colleagues in 120 countries empower results for clients by using proprietary data and analytics to deliver insights that reduce volatility and improve performance.
Aon announced in May 2018 it will retire the business unit brands of Aon Benfield and Aon Risk Solutions, which follows the retirement of the Aon Hewitt business unit brand in 2017. This move was designed to increase the rate of innovation across the firm and make it easier for colleagues to work together to bring the best of Aon to clients. Aon has five specific global solution lines: Commercial Risk Solutions, Reinsurance Solutions, Retirement Solutions, Health Solutions and Data & Analytic Services.
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