Survey ‘overly optimistic’

PETALING JAYA: A 10% salary increase for employees in Malaysia is “overly optimistic” given the current economic conditions, says Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan.

Many developments had taken place, especially in the fourth quarter of last year, he said in questioning the just released 2015 Hays Asia Salary Guide.

The findings by Hays, a recruiting expert, claimed that Malaysian workers could get a pay rise of between 3% and 10%.

However, the majority will get between 3% and 6%.

It also found that only 11% of employers indicated that bonuses were guaranteed.

“The Hays Asia Salary Guide found that 51% of employers across Asia will award bonuses to more than 50% of their staff this year.”

The survey covered 2,361 employers representing about four million staff throughout Asia.

Shamsuddin, when contacted yesterday, explained about the economic situation which was affecting salaries.

“The drop in petrol prices had an impact on the economic outlook of the world, especially in Malaysia where 30% of our revenue depend on it.

“Most companies are not that optimistic as far as the economic outlook in 2015 is concerned, so that is a pull down factor in their willingness to give a high (salary) review,” he said.

Shamsuddin said a survey by MEF conducted from May to September last year predicted a salary review of between 5% and 6%.

MTUC secretary-general N. Gopal Kishnam said the pending Goods and Services Tax (GST) would have an impact on workers, so employers should take this into consideration as well.

“After all, a happy employee will be more productive,” he said.