KUALA LUMPUR: Workers in the country are expected to receive salary adjustments and increments of between three and 20 per cent, depending on the industry, with high-growth industries such as technology and manufacturing more likely to see major changes in salary structure.
Human resource service provider Randstad's 2023 Job Market and Salary Trends Report said the rise in the cost of living and inflation in Malaysia had affected the people's ability to pay for essential items and their lifestyle.
It said salaries and careers had stagnated during the Covid-19 pandemic when companies froze hiring, salary increments and bonus payments in 2020.
It said in response to the increase in interest rates, companies were evaluating and rechecking salary scales to keep existing talent and attract new ones.
It said skills and talent development were needed in three industries — technology, manufacturing and construction.
The tech industry needed to take a calculated and careful approach to managing staff and the intake of new workers, focusing on talent demand in cloud computing, cybersecurity, artificial intelligence, Internet of Things (IoT), virtual reality and blockchain.
Demand for technical and commercial talent in the manufacturing industry was expected to continue as companies make efforts to increase Industry 4.0 digital transformation in automation and digitalisation.
Real estate and infrastructure development in the construction industry was expected to create more high-skilled job opportunities for local workers, but it could create problems if the skills gap continued.
Randstad Malaysia country director Fahad Naeem said many global companies had cut back on hiring due to record high inflation and leaned more towards controlling expenditure.
He said some companies might shift focus to Malaysia as part of their business transformation and restructuring, which will create new job opportunities for local talent.
"Change is crucial to thriving in Asia's rapidly evolving business landscape. With people serving as the backbone of any organisation's success, business leaders learn to address employee expectations for more effective talent attraction and management efforts."
A major challenge employers face is the lack of skilled talent in Malaysia.
A case study and research by Workmonitor Randstad found that 85 per cent of workers in Malaysia said it was very important for employers to offer training programmes and educational development, but only 36 per cent of respondents said they have received new training since last year.