Survey: M’sian Salary Increases To Remain Flat in 2024

By Aqasha Nalani • 30 Jan 2024 in News

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Image for illustration purposes only. (source: lifeforstock/freepik)

Aon plc (NYSE: AON), a prominent global professional services firm, has unveiled the global and regional results from its 2023 Salary Increase and Turnover Study.

According to the survey, which collects data gathered in the third quarter of 2023 from 950 companies across Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam, salaries in Malaysia are anticipated to remain stagnant in 2024.

While Malaysia and Singapore project flat salary increments at 5.0% and 4.0%, the study indicates a median salary increase of 6.5% for Indonesia, 5.5% for the Philippines, 4.9% for Thailand, and 8.0% for Vietnam in 2024.

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Despite concerns about the economic slowdown, compensation increases in Malaysia are projected to stay constant as employers deal with talent loss.

The attrition rates in Malaysia also rose to 16.2% in 2023 from 14.9% in 2022 due to evolving talent strategies and a persistent gap between talent supply and demand.

Meanwhile, the Philippines has the highest attrition rate at 17.5%, while Vietnam has the lowest at 13.8%.

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The report also indicated that businesses in Southeast Asia are cautiously optimistic about hiring, with 40% reporting no changes to recruitment numbers and 40% having hiring restrictions.

Aon’s data shows headcount numbers across industries are still higher than pre-pandemic levels, despite increased layoffs earlier in the year.

New hire premiums are averaging between 5.6% and 13.3%, with firms becoming more cautious with compensation spending as they streamline budgets and re-evaluate compensation strategies.

In contrast to 2022, Southeast Asia saw a hiring boom, and new hire premiums averaged between 14.7% and 23.6%.

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Looking ahead to 2024, salaries across industries in Malaysia continue to vary, with the retail industry having the highest budgeted salary increases at 5.2%.

The technology, life sciences, medical devices, and manufacturing sectors are at 5.0%, while financial services are at 4.5%.