The common salary in Malaysia is MYR6,610 (Malaysian Ringgit) per 30 days or US$1,508 (on the August 2024 exchange rate).
That is significantly lower than the common salary in other developed countries similar to the US, Hong Kong, South Korea, Singapore, and the UK. Because of this, Malaysia is probably the most popular outsourcing destinations in Southeast Asia.
But is that this the very best option for your enterprise?
In this text, we are going to discuss various features of the common and median salaries in Malaysia.
We may also take a look at average salaries by experience, education level, sector, city, and salary increases. Finally, we are going to take a look at the advantages and challenges of outsourcing to Malaysia.
Contents
Let’s dive into this topic.
Malaysia Average Salary Statistics and Trends
The common salary in a given country may be a great indicator of how much an worker typically earns.
According to Salary ExplorerThe common salary in Malaysia is MYR79,300 per yr ($18,103).
The standard salary range in Malaysia is MYR1,670 (lowest average monthly salary Down MYR29,400 (highest average monthly salary)Nonetheless, the actual maximum salary is higher.
Nonetheless, since salaries vary a lot, it’s best to investigate them from different perspectives to learn the way much it is best to pay your employees.
Let’s start by taking a take a look at the common and median salaries in Malaysia.
A. Average and median salaries in Malaysia
When determining how much to pay employees in Malaysia, it may possibly be helpful to know the common and median salaries.
1. Average salary
This monthly average salary (also referred to as monthly average (salary) is MYR6610 per 30 days. The common salary represents what the “typical employee” earns and should be higher for higher salaries or lower for lower salaries.
How is it calculated?
For instance worker 1 earns $30,000, worker 2 earns $40,000, and worker 3 earns $100,000. The whole of $170,000 is split by 3 to get a mean salary of $56,666.
2. Median salary
This median salary Malaysia is 5,790 MYR per 30 daysIn other words, half (50%) of the population earns lower than MYR 5,790 while the opposite half earns greater than MYR 5,790.
How is it calculated?
The median monthly salary shows middle value of remuneration.
For instance: Worker 1 earns $30,000, Worker 2 earns $50,000, Worker 3 earns $90,000. The common salary (median salary) is $50,000.
Since the median wage represents a selected point within the distribution, it can’t be increased or decreased by wages at the acute ends of the distribution.
B. Average salary depending on experience
In Malaysia, work experience plays a big role in determining salary.
In response to the 2024 Salary Report published by Salaryexplorer.com:
- Employees from between two to 5 years experience to earn 32% more than younger and inexperienced staff.
- Professionals with over five years I even have experience 36% higher salary than for first-time job seekers.
- Employees from 10 years and more experience to earn 21% more, and people from 15 and more I even have years of experience 14% higher remuneration.
Employers in Malaysia are generally willing to pay higher salaries to experienced employees. It is because specialist positions are harder for HR professionals to fill than entry-level positions.
In consequence, the salary of an individual doubles their starting salary after exceeding 10 years of experience rate.
C. Average salary by education
In Malaysia, as in most countries of the world, higher education often means higher salary.
In response to 2024 labor statistics:
- Professionals from college diploma they earn greater than their colleagues with the identical experience.
- Employees from certificate or diploma to do 17% more than their colleagues who only had a highschool diploma.
- Employees from Bachelor degree to earn 24% more than individuals with a certificate or diploma.
- Professionals from Master’s degree to earn 29% more than those with a bachelor’s degree.
- Professionals from Doctorate they sometimes earn the very best salary – 23% more than individuals with a Master’s degree doing the identical job.
D. Average salary by sector
Listed here are the common salaries in Malaysia by industry:
| Industry | Average monthly salary |
| Administration | 3910 MYR |
| Banking and financial services | 7210 MYR |
| Construction | MYR4,090 |
| Customer support | 4760 MYR |
| Computer science and knowledge technology | MYR6790 |
| Legal | 8,560 MYR |
| Health and medicine | 9820 MYR |
| Property | MYR7250 |
Source: Salaryexplorer.com
Nonetheless, average salaries vary depending on position and job description in several industries.
For instance, within the IT industry, the common annual salary of an information analyst is MYR73,000, while a software engineer typically earns around MYR79,300.
As well as, salaries in public sector are higher than private sector salaries.
E. Average salary by city
The common salary in Malaysia varies by city.
In response to Department of Statistics Malaysia (DOSM)average salaries in rural areas are often lower than in urban areas. But the fee of living is lower in these areas.
Here’s a breakdown of average incomes in major cities of malaysia:
| City | Average monthly salary |
| Kuala Lumpur | 7160 MYR |
| Latest Johor | 6660 MYR |
| Kota Kinabalu | MYR6,560 |
| Kuching | 6420 MYR |
| Jaya’s Petals | MYR6960 |
| Ipoh | 7070 MYR |
| Clang | MYR6,130 |
| Amang | MYR6,010 |
Sources: Salaryexplorer.com and Payscale.com
F. Average annual salary increases
Average salary increase per yr in Malaysia is 6%. But possibly oscillate based on aspects similar to industry and experience.
1. Average annual salary increases by industry
Below is a summary of the annual salary growth rate in individual industries in 2024:
| Industry | Average annual growth |
| Banking | 4% |
| Energy | 8% |
| Information technology | 3% |
| Healthcare | 7% |
| Trip | 2% |
| Construction | 6% |
| Education | 1% |
Source: Salaryexplorer.com
2. Average annual salary increases depending on length of service
Below is an summary of the common salary increase rate in Malaysia by seniority level:
| Experience level | Average annual growth |
| Junior Level | 3-5% |
| Medium level | 6-9% |
| Senior level | 10-15% |
| Top management | 15-20% |
Source: Salaryexplorer.com
Note: The salary data provided in this text is sourced from various salary surveys, web sites, etc., and the actual numbers may vary based on the aspects mentioned above (location, experience, etc.)
It’s also vital to keep in mind that various aspects similar to the worldwide economic situation and Malaysian Conditional Movement Control Order (MCO)introduced to regulate the movement of individuals throughout the pandemic might also affect average wages.
Now that we all know the common salary, let’s examine if Malaysia is a great location for outsourcing.
Is it value considering outsourcing to Malaysia?
The Malaysian government has implemented many national programmes focused on developing their digital and e-commerce industries. Nonetheless, as an outsourcing location, it also has its shortcomings.
Let’s take a look at the advantages and challenges.
A. 2 Major Advantages of Outsourcing to Malaysia
Here Why it is best to consider outsourcing to Malaysia.
1. Technology leaders
Aside from digitally advanced economyMalaysia is a pacesetter in implementation Artificial Intelligence (AI) Technologies in smart cities to maximise economic and social advantages.
Malaysia can be experiencing growth in e-commerce, big data and analytics, nanotechnology and Internet of Things (IoT) sectors – all with excellent revenue potential.
As well as, the federal government has implemented Mandatory Standard Access Pricing (MSAP) to create multimedia technology centers, advanced telecommunications infrastructure, and reasonably priced high-speed Web services. MSAP has effectively reduced broadband Web prices by 49% and tripled Web speeds.
2. Investor-friendly policy
Malaysian Ministry of Housing and Local Government (KPKT) recently launched Malaysian Smart City Framework. The aim of this initiative is to develop urban areas into smart cities, geared toward serving global enterprises from various industries, including the outsourcing sector.
As well as, Malaysia has also introduced National Development Policy (NDP) AND National Vision Policy (NVP). These rules provide Malaysians with equal opportunities in business. It also offers opportunities for global players by way of investment ownership and control.
B. 2 Major Challenges of Outsourcing to Malaysia
Despite the advantages, outsourcing to Malaysia also comes with some challenges.
1. Limited competitive human capital
Since only 50% of the population makes up the complete workforce, access to qualified, experienced employees is usually a challenge, especially in knowledge-based and specialist industries.
In Malaysia, continuing your education after college is pricey. A master’s degree can cost anywhere from MYR32,900 to MYR98,800, which might restrict access for brand new graduates and educated professionals.
2. Growing variety of cybersecurity breaches
The Malaysian Government passed the Personal Data Protection Act (PDPA) in 2013.
Nonetheless, there remains to be a rise cybercrimeincluding online exploitation and identity theft.
In 2017, the information of 46 million cell phone users and 20,000 medical records were leaked.
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Final Thoughts
Malaysia has the potential to turn out to be a number one outsourcing destination, given its investor-friendly policies and give attention to technology. Nevertheless it also has its challenges.
Subsequently, it’s value analyzing the common salary data and weighing the professionals and cons before making a choice on Malaysia as an outsourcing location.
Fortunately, the information in this text can provide a great start line on your research and enable you determine whether outsourcing your services to Malaysia shall be the right solution for your enterprise.