Malaysian employees may see a 20% pay hike this year

Malaysians can anticipate salary adjustments ranging from 3% to 20% depending on the industry, with high-growth sectors like manufacturing and technology undergoing more significant changes, according to a survey by international human resource firm Randstad Malaysia’s 2023 talent and salary outlook report.

According to the research, which was published yesterday, January 17, Malaysia’s rising inflation and cost of living have a negative influence on the ability of individuals to afford necessities and lifestyles.

It was shown that 74% of local workers gave income and perks the highest priority when seeking a new job.

As a result, businesses wishing to hire applicants with specialised talents or with ambitions to expand their personnel would need to provide a very competitive salary and benefits package to attract talent.

According to the survey, despite recent tech layoffs, businesses are still moving forward with their plans for technology recruiting, albeit cautiously given that by 2025, the digital technology industry is expected to contribute 22.6% of the nation’s gross domestic product (GDP).

According to Randstad Malaysia, the number of digital job openings has also increased, from 19,000 to 56,000 in a year, and the development of 5G technology would result in the creation of 750,000 employment in Malaysia alone by 2023.

Similar to real estate, infrastructure growth in the construction sector is anticipated to increase the number of high-skilled job opportunities for local employees, but if the skills gap persists, difficulties may arise.

85% of workers in Malaysia stated it was very important for employers to give training programmes and educational development, but just 36% of respondents claimed they had gotten new training during the previous year, according to a case study and research by Workmonitor Randstad.

While Malaysian workers are aware of their skills gap and willing to upskill, the report claims that it is Malaysian companies who should make the investment in upskilling their workforce.