Salaries increase by 5.0%: Aon Malaysia 2018 Salary Increase & Total Compensation Measurement� Survey

KUALA LUMPUR, MALAYSIA -�Media
OutReach - 18 December 2018 - Salaries
in Malaysia increased by 5.0% in 2018, and are projected to increase by 5.2% in
2019, according to the Malaysia 2018
Salary Increase & Total Compensation Measurement^TM Survey by Aon (NYSE: AON), a leading global
professional services firm providing a broad range of risk, retirement, and
health solutions.

 

These rates indicate that wages here are increasing faster
than in Singapore (3.8% in 2018) and in-line with Thailand where salaries
increased by 5.2% in 2018. Indonesia experienced a 7.6% rise in wages — albeit
with higher inflation and lower income base.

 

Amid volatility in global
financial markets and oil prices, alongside the rising trade conflict between
Malaysia’s largest trading partners, China and the USA, Malaysia’s economy
remains resilient with a projected GDP growth of 5.0% this year.

 

Prashant Chadha, Managing
Director, Talent, Rewards and Performance, Aon Malaysia & Philippines,
said: “In the face of a growing economy and steady salary increases, employers must
rework their compensation packages to ensure they can continue to attract and
retain the best talent in Malaysia. An organisation’s best performers are often
able to command premium pay — and ultimately, play key roles in driving strong
business results.”

 

Inside
Industry 4.0: Fresh Graduates in Technology and Engineering Fields Most Valued
by Malaysian Employers

According to the Aon survey, fresh graduates working in
technology and engineering-related fields are enjoying a pay premium (above
general industry average) of 12.1%, 21.3% and 23.0% respectively in the
engineering, telecommunications and high-tech industries.

 

This is reflected in
engineering and project design roles as well, which offered the highest
starting salaries in the market for degree holders at over RM 3,500 per month.
Meanwhile, fresh graduates working in IT services and e-commerce roles are paid
5.7% and 6.5% above the general industry average.

 

Employees
in Analytical, Strategic and Specialist Roles Earned Top Dollar

The Aon
survey also found that employers were committed to professionals with
specialist skills sets, such as legal managers. They are also looking at key
attributes such as innovation, critical problem-solving, and strong business
acumen — as demonstrated by the pay premiums in the engineering and
tech-related industries.

 

General industry	Legal managers	16% more than market average
Engineering & Tech	Project managers	7% more than market average
	Planning and business development managers	9% more than market average

 

Rahul Chawla, Practice Lead, Talent, Rewards &
Performance, Aon Malaysia, said: “As the
country’s economy grows, employers must look to align their rewards practices with
those of developed economies. Performance-driven rewards systems have
become the norm, and productivity bonuses, sales incentives, and long-term
incentives (LTI) are increasingly prevalent among Malaysian employers. These
must be backed by fair performance assessment processes and robust corporate
governance.”

 

About the Aon Malaysia 2018 Salary Increase &
Total Compensation Measurement^TM Survey

This is an annual nationwide survey on how organisations are addressing
projected salary budgets, variable pay and cost-saving initiatives. It contains data on key changes in
employee compensation in 2018 and projections for 2019.  This year, 320 employers participated in the
survey in Malaysia.

 

About Aon

Aon plc (NYSE:AON) is a
leading global professional services firm providing a broad range of risk,
retirement and health solutions. Our 50,000 colleagues in 120 countries empower
results for clients by using proprietary data and analytics to deliver insights
that reduce volatility and improve performance.

 

Aon announced in May 2018 it
will retire the business unit brands of Aon Benfield and Aon Risk Solutions,
which follows the retirement of the Aon Hewitt business unit brand in 2017.
This move was designed to increase the rate of innovation across the firm and
make it easier for colleagues to work together to bring the best of Aon to
clients. Aon has five specific global solution lines: Commercial Risk
Solutions, Reinsurance Solutions, Retirement Solutions, Health Solutions and
Data & Analytic Services.

 

For further information on
our capabilities and to learn how we empower results for clients, please visit https://apac.aonhewitt.com