KUALA LUMPUR: The salary increase across key industries in Malaysia is forecast to remain stable at 5.0 per cent, while the inflation rate is projected to increase to 2.4 per cent from 0.9 per cent in 2019.
Based on the Mercer’s Annual 2019 Malaysia Total Remuneration Survey, the shared services and outsourcing (SSO) industry is predicted to have the highest salary increase at 5.5 per cent compared to 5.3 per cent in 2018, followed by life sciences (5.4 per cent) and chemical (5.4 per cent) industries.
Mercer Malaysia chief executive officer Prashant Chadha as quoted in Bernama said well-performing companies and industries might be more incentivised to provide employees with increases higher than the market average as they benefit from the government’s push for industry disruption and digitisation.
Prashant said similarly, high demand for some jobs may lead to larger salary increases to attract and retain talent.
The salary trend forecast for 2020 in Malaysia remains stable across job functions with the highest salary increase are production and skilled trades (5.8 per cent), data analytics/warehousing (5.5 per cent), and IT and project managers (5.3 per cent), while administration and secretarial jobs are predicted to receive the lowest increment at 4.0 per cent.
As for career streams, paraprofessionals can expect a salary increase of 5.3 per cent, whereas executives can expect a 4.0 per cent increase.