Higher Wages for Malaysians in 2017

Diane Foo Eu LynnJanuary 10, 2017

 

Despite a lacklustre outlook for the year ahead, more companies in Malaysia expect to generate higher revenue in the next 12 months, as well as raise the salary of their employees, according to global survey conducted by Grant Thornton in Q4 2016.

“In Malaysia, business optimism level suffered a huge decline due to our weak ringgit performance and this links to our country’s economic uncertainty. Exchange-rate fluctuations topped the list as the country’s biggest constraint to business expansion, with 76 percent of business executives highlighting this as a challenge. This is an increase of 34 percentage points from 42 percent in Q3 2016 and is the highest in the ASEAN region,” said Datuk NK Jasani, Country Managing Partner at Grant Thornton Malaysia.

Nevertheless, Malaysia has the highest percentage (86 percent) of businesses that are expecting to increase the wages of their personnel in 2017, compared to other countries in the Southeast Asian region.

In addition, 36 percent of the surveyed companies there anticipate a hike in revenue over the next 12 months, up from the 26 percent figure recorded during the previous quarterly survey.

The latest Grant Thornton International Business Report, which polled 2,600 businesses in 37 economies, also noted that more Malaysian firms are forecasting better profitability in the year ahead, with 24 percent expecting higher earnings compared to -4 percent in the Q3 2016 survey.

 

Image sourced from Parade

 

Diane Foo Eu Lynn, Senior Content Specialist at PropertyGuru, edited this story. To contact her about this or other stories email diane@propertyguru.com.my

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