Salaries in Malaysia 2025: Trends and Projections for Employers

Curious about salary trends in Malaysia for 2025? Good news! Salaries are expected to keep growing.

On average, salaries across industries will increase by 5%.

The energy and shared services sectors will see the biggest pay hikes according to the Mercer Annual Total Remuneration Survey.

If you're looking to grow your team or stay competitive, it's important to understand these trends.

Knowing what’s happening in the market will help you attract and keep the best talent.

In this article, we’ll explain the latest salary growth, which industries are hiring more, and what’s causing changes in the job market.

Think of this as your guide to navigating Malaysia’s job market in 2025. Let’s get started!

Overview of Salary Projections for 2025

Salaries in Malaysia are expected to grow steadily in 2025, with a projected 5% increase across all industries.

This consistent hike reflects Malaysia’s resilience and adaptability in a competitive global market.

From manufacturing to technology, every sector is set to see a boost, helping businesses keep pace with inflation and attract top talent.

On top of that, hiring intentions are strong, with 24% of companies planning to expand their workforce.

This upward trend in recruitment signals a renewed confidence in business growth, particularly in key industries like tech and healthcare.

Employers looking to grow their teams will need to offer not just competitive pay but also compelling career opportunities to stay ahead.

Industry Salary Trend and Key Roles

Not all industries are created equal when it comes to salary growth.

In 2025, energy and shared services are taking the lead, offering some of the highest base salaries in Malaysia.

These sectors are ramping up efforts to attract top talent, especially as businesses double down on digital transformation and sustainability initiatives.

Key roles driving salary spikes include:

Cloud computing professionals. As companies continue their shift to cloud-based operations, the demand (and pay) for experts in this field is soaring.
Electrical instrumentation and control engineers. Energy and manufacturing industries are prioritizing specialists who can optimize operations and ensure seamless automation.
Cybersecurity architects. With cyber threats on the rise, these roles are now critical for protecting sensitive data and systems.
Enterprise architects. Businesses are investing in professionals who can align IT strategies with long-term goals, making this role indispensable.

Hiring Plans for 2025: Cautiously Positive Despite Challenges

In 2025, most companies in Malaysia are opting to maintain their current headcount, while 24% are planning to expand their workforce.

This signals a cautious but optimistic approach to hiring as businesses continue to recover and adapt to the evolving market.

When comparing this to 2024, hiring intentions are slightly weaker.

According to the ManpowerGroup Employment Outlook Survey, 27% of employers in the Asia Pacific region planned to increase their workforce in Q1 2025, which is 3% lower compared to Q1 2024.

This shift reflects the ongoing uncertainties in the global economy, with employers balancing growth ambitions against potential risks.

Despite this, the intention to increase headcount in certain sectors, particularly in tech and specialized industries, still indicates a positive outlook for the year ahead.

Comparative Salary Projections in Southeast Asia

Malaysia

A 5% salary increase is projected for 2025, reflecting steady growth across all industries.

This increase is in line with the country’s stable economic recovery, as companies continue to offer competitive salaries to retain talent and navigate inflationary pressure.

The rise in salaries is seen as strategic move to maintain a competitive edge in the regional job market.

Indonesia

Employers in Indonesia are expecting a slightly higher salary boost of 6.1%.

This reflects the country’s robust economic growth and demand for talent, particularly in sectors like technology, manufacturing, and finance.

The salary increase is also driven by inflation concerns and the need to retain key talent in a competitive market.

Singapore

Singapore’s salary increase projection stands at 3.8%, which, while lower than its Southeast Asian neighbors, still shows consistent growth.

The smaller rise is attributed to a more mature and competitive job market, where companies are more focused on retaining top talent rather than aggressively increasing wages.

However, high-demand roles in tech and specialized industries may see larger salary hikes.

Labor Market Trends in Malaysia: Employee-centric Policies

In 2025, Malaysia’s labor market is shifting towards more employee-centric policies as companies recognize the need to attract and retain top talent in a competitive environment.

Here’s how businesses are adapting:

Competitive Compensation Packages

Employers are offering attractive salary and benefits packages to stay competitive, ensuring they meet or exceed industry standards to secure the best candidates.

Flexible Working Arrangements

The demand for remote work and flexible hours remains strong as employees seek better work-life balance.

Businesses are increasingly adopting hybrid models to accommodate these preferences.

Tailored Benefits and Diverse Incentive Structure

Companies are customizing benefits, from health insurance to performance bonuses, to meet the unique needs of their workforce.

Offering diverse incentives, such as wellness programs and learning opportunities, is becoming a key way to retain staff.

Given these trends, businesses need to adopt strategic and adaptive HR strategies.

This includes staying ahead of labor market shifts, being proactive in adjusting compensation and benefits, and creating an inclusive work culture that addresses evolving employee expectations.

By doing so, companies can position themselves as employers of choice in a rapidly changing landscape.

Key Insights from Mercer’s Annual Survey

Mercer’s Annual Total Remuneration Survey offers valuable insights into how businesses are adapting to the evolving labor market. Here are some key takeaways:

Adjusting Remuneration Strategies

Around 70% of companies are planning to adjust their remuneration strategies in 2025.

This reflects a growing recognition of the need to align pay with market trends and employee expectations, particularly as businesses face rising competition for talent.

Employers are focusing on offering competitive compensation packages to attract and retain top performers.

Specialised Roles Demanding Premium

Specialised roles, particularly in fields like technology, cybersecurity, and engineering, are commanding a premium.

As businesses focus on innovation and digital transformation, professionals with niche skills are increasingly in high demand, leading to higher salary offerings.

These roles are seen as essential to achieving long-term business goals, and companies are willing to pay a premium to secure the right talent.

Growth Sectors and Strategic Roles

Several sectors are seeing notable growth, including energy, technology, and healthcare.

Within these sectors, strategic roles such as cloud computing professionals, cybersecurity experts, and enterprise architects are particularly in demand.

These positions are critical to the growth and success of businesses in these industries, driving the need for competitive compensation and long-term talent development strategies.

Conclusion

In summary, Malaysia is witnessing consistent salary growth across industries, with a projected 5% increase in 2025, especially in sectors like energy and shared services.

Hiring patterns are shifting as companies remain cautious but optimistic, with 24% planning to expand their workforce.

At the same time, businesses are increasingly adopting employee-centric strategies, focusing on flexible work arrangements and tailored benefits to attract and retain talent.

As Malaysia continues to strengthen its position within the SEA talent market, it remains competitive, particularly in high-demand sectors like technology and energy.

To stay ahead, employers must embrace the evolving labor market and respond to the changing needs of their workforce.

Adapting to these changes will ensure businesses remain attractive to top talent in an ever-evolving landscape.

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