KUALA LUMPUR: Businesses in Malaysia are expecting employee salaries to increase over the next 12 months, says a survey conducted by Grant Thornton International Business Report (IBR).
Employee salaries and other key economic indicators, including revenues, exports, selling prices, employment and profits are expected to improve despite the less-than-optimistic outlook for the year ahead, a company statement said today.
Malaysia has the highest proportion of businesses in the Asean region expecting to offer employees a pay rise in next 12 months.
"Eighty-six per cent of businesses are expecting to offer salary increments for their employees for the year ahead, as compared to 78 per cent in the third quarter of 2016 (3Q16)," said Country Managing Partner Datuk Narendra Kumar Jasani.
He said the low optimism is due to the ringgit's poor performance.
"Exchange-rate fluctuations topped the list as Malaysia's biggest constraints to business expansion, with 76 per cent of business executives highlighting this as a challenge.
"This is an increase of 34 per cent from 42 per cent in the third quarter of 2016 and is the highest in the Asean region," he added.
The findings also revealed that 36 per cent of businesses in Malaysia expect revenue to increase in the fourth quarter of 2016, compared with 26 per cent in the previous quarter.
"Selling prices and profitability are also expected to increase over the next 12 months, with 20 per cent of businesses expecting an increase in selling prices," it added. -- Bernama