KUALA LUMPUR: Overall salaries are expected to go up by 5 per cent in 2025, as most companies look to maintain headcount according to a survey of 681 organisations.
Mercer's, a business of Marsh McLennan's, findings are based on findings from companies across diverse sectors of technology, consumer goods and manufacturing among others.
The survey reveals that overall salaries in Malaysia are projected to increase by 5.0 per cent across all industries in 2025.
It also found that while about 60 per cent are looking to maintain headcount, close to a quarter of organisations are planning to increase headcount next year.
Mercer said the Malaysia's labour market is shifting towards a more strategic and employee-centric approach, prioritising competitive compensation packages, diverse incentive structures, flexible work arrangements and tailored benefits that addresses the different needs of their workforce.
The median voluntary turnover rate of 11.8 per cent highlights the competitive landscape of the job market, prompting employers to enhance their retention strategies.
With 70 per cent of Malaysia companies intending to adjust their remuneration strategies next year, this further underscores the competitive talent market. Mercer said industries like energy and shared services continue to thrive, leading in base salary offerings.
This is largely fuelled by the high demand for skilled professionals in these fields, driven by ongoing investments and growth opportunities.
Companies in these sectors often have the financial resources to offer competitive salaries, which help them attract top talent.
Conversely, industries like retail and logistics are exploring innovative strategies to enhance their compensation packages, often incorporating allowances and non-monetary benefits to effectively attract and retain talent.
Beyond industry-level trends, specific job roles are also seeing notable shift in demand and pay.
Mercer said growth jobs such as cloud computing, electrical instrumentation and control engineering experiencing positive salary growth alongside rising demand.
Additionally, roles such as cybersecurity architecture, project controls engineers and enterprise architects command a premium in pay, highlighting increasing value placed on specialised skills in a competitive environment.
Mercer's survey data was primarily multi-national corporations, and the actual salary increase, or premiums are influenced by the organisation, team and individual performance