Malaysians' Average Wages Decreased For the First Time Since 2010

The Department of Statistics Malaysia (DOSM) reported that the mean monthly salaries and wages decreased by 9% in 2020. Based on its report titled Statistics of Salaries & Wages, Malaysia, 2020, this is the first decline since the series began in 2010. 

DOSM compiled the statistic based on the Salaries & Wages Survey, which measured the monthly salaries and wages received by full-time Malaysian workers in the private and public sectors based on their principal occupation. 

Out of 15 million employed people in 2020, the number of citizen salaries and wages recipients was 9.4 million persons.

Malaysia's Chief Statistician Dato' Sri Dr Mohd Uzir Mahidin said that throughout 2020, the labour market experienced uneven momentum after the health crisis and economic consequences. After two consecutive years recording over RM3,000, the mean monthly salaries and wages fell to RM2,933 in 2020. In 2019, the mean monthly salaries and wages was RM3,224.

Source: DOSM

All economic sectors recorded a decrease in mean monthly salaries

Three sectors posted a double-digit decline:

• Agriculture at -20%,

• Mining and quarrying at -17.7%, and

• Construction at -10.4%

Services and Manufacturing sectors registered a decrease of 9.4% and 2.8% respectively. 

These industries in the Services sector recorded a double-digit decline in mean monthly salaries & wages:

• Wholesale and retail trade; repair of motor vehicles and motorcycles at 14.9%

• Accommodation and food and beverage service activities at 13.7%.

 

Mean wages of skilled, semi-skilled, and elementary workers

The Chief Statistician said that the mean monthly salaries and wages in 2020 was RM4,619, compared to RM5,072 in 2019. In the skilled occupation category, Manages had the highest mean monthly salaries and wages at RM6,479, Professionals came at second with RM5,301, followed by Technicians and associate professionals at RM3,313. However, the Managers' mean value registered the largest decrease compared to 2019 with RM8,855.

The mean value of semi-skilled workers was RM2,007, compared to RM2,206 in 2019. Clerical support workers' mean salaries and wages was RM2,370. Other semi-skilled job categories recorded a mean value lower than RM2,000:

• Services & sales workers at RM1,926,

• Skilled agriculture forestry, livestock and fishery workers at RM1,547,

• Craft and related trades workers RM1,891,

• Plant and machine operators and assemblers at RM1,918. 

Elementary workers received mean monthly salaries and wages of RM1,727 in 2020.

Source: DOSM

Salaries and wages situation by stratum

Even though the mean monthly salaries and wages for both urban and rural stratum decreased in 2020, the mean value in urban registered a larger decline of 9.3% to RM3,089. The mean in rural areas decreased with a rate of 5.5% to Rm2,086. 

By state, employees in W.P. Putrajaya received the highest mean monthly salaries and wages at RM4,497. Other states that recorded high mean value were:

• W.P. Kuala Lumpur at RM3,823,

• Selangor at RM3,480,

• Negeri Sembilan at RM3,013, and

• W.P. Labuan at Rm2,942.

All states registered a decrease in mean monthly salaries and wages compared to 2019. 

 

Median monthly wages

Median monthly salaries and wages recorded a double-digit reduction of 15.6%, after average growth of 5.6% for the last nine years. 

The median value was RM2,062 indicates half of the workers earned above this value and half earned below. The number of wage recipients increased at a slower rate of 2.1% to 9.4 million persons compared to an increase of 5% recorded in 2019 with 9.2 million persons. 

 

The Chief Statistician said that the unprecedented event in 2020 had decreased the salaries and wages received by full-time Malaysian workers. 

According to him, the International Labour Organisation (ILO) reported based on early data that the growth rate of average wages around two-thirds of the countries in the world was on a downward trend, including Japan, the Republic of Korea and the United Kingdom. 

Countries that utilised job retention measures were able to retain employment at lower salaries and wages and mitigated job losses. Malaysia experienced the same situation, whereby the wage subsidy and employment retention programmes have assisted in cushioning the impact of job losses in 2020. 

For more information, visit DOSM website here

Sources: DOSM/Facebook

 

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