Bad news for Malaysians: Salary increases are expected to be lower than last year, at 2% in 2017 due to rising inflation. This is down from the 3.1% in 2016, said ECA International.
“Low unemployment continues to exert upward pressure on wages in Malaysia and this is reflected in the 5% nominal salary increases forecast next year,” said Lee Quane, regional director – Asia, ECA International.
With high labour cost in Malaysia compared to some of its competitors, investments are lost, especially to other ASEAN member economies, Lee added.
According to the latest Salary Trends survey by ECA International, Malaysia ranks at the 14th position in the Asia Pacific regional rankings for real wage increases, and the 11th position for nominal salary increase:
Source: ECA International
In Asia Pacific, the average real wage increase is expected to be 2.6% next year, which is higher than all other regions surveyed. In terms of real salary increases, staff in Vietnam will experience the highest regional and second highest global real wage increase next year at 5.4%.
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