Global consultancy firm Mercer said the overall salary increase in Malaysia is forecast to stand at 5.2% in 2019, similarly to this year, with life science and technology as the main industries.

Mercer Malaysia CEO Hash Piperdy said it is anticipated that the majority of industries will retain similar salary growth rates in the following year, excluding the consumer goods industry, which is forecast to grow by a mere 0.3%.

“Life science and technology industries are at the top in terms of the highest base pay and total cash increases for executive roles in 2019,” Mercer said in a statement.

However, roles in the legal, finance and research and development functions are expected to gain the greatest increases.

The statement went on to say: “Positive signals of revival in the semiconductor and biotechnology sectors also implies that specialist engineering and sales talent will be in demand.

“Bucking the trend of muted growth in the rest of the banking and financial services industry, the insurance industry is also projected to see healthy growth.”

Mercer also revealed that Malaysia retains a highly competitive economy, with 38% from Generation X and 44% of millennials forming part of the workforce in 2018.

“The current focus on restructuring the economy, promoting diversity and raising productivity by the Malaysian government is taking light as the country takes progressive strides to be a highly competitive nation globally.

“This means an increased focus by companies to further invest in building their workforce for the future,” said chief executive officer for Mercer Malaysia, Hash Piperdy.

The study shows that among emerging markets, the countries expected to boast the highest salary increases in 2019 are Bangladesh (10%), India (9.2%) and Vietnam (9.8%).