Malaysia, 26 Feb 2025 – Insights from the 2025 Hays Asia Salary Guide reveal that 47 per cent of working professionals in Malaysia did not feel their salaries aligned with their responsibilities, the highest percentage among six locations surveyed in Asia which include Malaysia, China, Hong Kong SAR, Japan, Singapore, and Thailand. 

The survey conducted by Hays across six weeks in late 2024 gathered insights from 3,670 hiring managers regarding expected changes in salaries or rates of pay within their organisations. Additionally, 8,790 skilled professionals were queried about their remuneration expectations for the year, including anticipated changes, satisfaction with pay, and whether they felt their salaries aligned with their responsibilities. 

In Asia: Modest raises amidst tough economic backdrop

Despite cautious pessimism about the broader economic climate, sentiments around salary are showing signs of improvement. Fewer professionals in Asia can expect to encounter no change in their salaries this year, down from 29 per cent in 2024 to 23 per cent. Professionals can also anticipate fewer pay cuts this year, down from seven per cent last year to six per cent in 2025. 

Conversely, most employers in Asia (34 per cent) expect to provide salary increments of between 2.5 per cent to five per cent, consistent with last year’s rate. Notably, organisations are increasingly committed to rewarding key talent on a higher scale, with 10% of hiring managers planning to offer raises between 6 per cent and 10 per cent, nearly double from last year (six per cent). 

More raises in Malaysia this year 

The outlook in Malaysia has improved from 2024, with organisations looking to provide increments to more working professionals this year. 80 per cent of professionals in Malaysia can expect to receive a raise this year, ahead of Hong Kong (77 per cent), Singapore (75 per cent) and Japan (70 per cent). The largest shift comes from the number of organisations expecting to keep salaries stagnant, down to 18 per cent this year from 31 per cent in 2024. 

Most professionals in Malaysia can expect to receive increments between 2.5 per cent to five per cent (41 per cent), followed by increments between six per cent to ten per cent (17 per cent). 16 per cent of professionals stand to enjoy pay raises up to 2.4 per cent. Only 2 per cent of professionals can expect decrements this year. 

Professionals are more optimistic regarding increments, with 90 per cent indicating they expect a raise. Most professionals expect to see increments between 2.5 per cent and five per cent (33 per cent), while 27 per cent predicted increments between six and ten per cent. 10 per cent expected no changes to their salaries this year. 

“58 per cent of working professionals in Malaysia consider compensation and benefits to be their top Employee Value Proposition today,” said Natasha Ishak, Regional Director at Hays Malaysia. “Additionally, 36 per cent of respondents stated they would remain with their current employer due to the salary package offered.” 

Pay does not align with responsibilities

Salary increments in Malaysia are also accompanied by increased expectations regarding work output. 58 per cent of professionals reported that their workload or scope of responsibilities had increased as a result of changes to their salary, the highest in Asia. While 35 per cent of respondents felt their pay was aligned with their responsibilities, 47 per cent disagreed. 

“45 per cent of working professionals in Malaysia were unsatisfied with their current pay. Additionally, among the 62 per cent of professionals intending to switch jobs this year, 56 per cent are choosing to do so for higher remuneration,” said Natasha. 

Working professionals in Singapore expressed similar sentiments to their counterparts in Malaysia. 47 per cent of professionals in Singapore wishing to seek employment elsewhere this year were also doing so for higher pay. 42 per cent similarly felt that their pay did not align with their responsibilities, while 41 per cent were dissatisfied with their salaries. 

“With 42 per cent of organisations in Malaysia looking at employee retention as a key HR focus area this year, leaders will want to ensure that compensation levels remain competitive. Be sure to evaluate your salary structures and conduct benchmarking exercises to align remuneration with market standards,” said Natasha. 

A copy of the 2025 Hays Asia Salary Guide is available here.

For more information contact:

Sonel Singh, Head of Marketing, Hays Southeast Asia
T: +60 3 7890 6351
E: sonel.singh@hays.com.my