- 25.5 % projected growth in the digital economy in 2024, surpassing the national goal
- Pikom also experiences an annual average growth rate of 6.45 %& nbsp over a 10-year period.
According to Vanessa Tan, CEO and owner of HT Consulting( Asia ) Sdn Bhd of Pikom’s( National ICT Association of Malaysia ) Economic and Digital Job Market Outlook 2023,” I have been eagerly awaiting this report.” She said,” It is a very helpful data-based document that helps me standard how competitive my renumeration coverage is so I can compete for skill.”
The executive summary is available for download with the hard copy & nbsp at the Pikom website and will soon be for sale.
In fact, a full house of C-suite executives and Pikom partners attended the report’s 15th book, which was released on October 12th, with two important data points standing out. This was the highest salary increase since the study was first released in 2008, and it also predicted that the digital economy would grow strongly by 25.5 % in 2024.
The average tech salary increased to 13.9 % for 2023 following an anemic average salary growth in the 2 % to 2.6 % range during the pandemic years of 2020 to 2022. The amount was determined using advertised monthly salaries for digital professionals in five categories( access, young executive, top executive; manager, and senior manager ) published by SEEK, Pikom’s research partner, Jobstreet.
Pikom also sourced information for 61 specific positions( collected under the headings” Technology ,”” Managerial ,” and” C-level”) from Payscale and SalaryExpert, two well-known US compensation companies, in an effort to improve the accuracy of its report.
Salaries playing catch-up after the pandemic bring
According to Woon Tai Hai, a Pikom adviser and study head who is also the association’s former chairman,” Pay were playing catchup after the lower than average growth during the pandemic.” According to Woon, with a standard 6 to 12 month slowdown in salaries to represent robust GDP growth, the increase in average tech salaries seen this year was down to the strong 8.4 % gross domestic product growth Malaysia experienced next year.
However, Woon cited increased talent competition, the relocation of experienced professionals following the pandemic, accelerated modern transformation in corporations, and inclusive government policies in addition to GDP.
Pikom projects a 4.13 % average salary growth YOY for 2024, and beyond that, an annual average growth rate ( AAGR ) of 6.45 % over the course of ten years, with economic growth in 2023 expected to be at 4.2 %( higher than the 3.8 % projected by The World Bank ).
Woon believes that a convergence of factors involving both public and private sector action is necessary for this project to succeed.
With hybrid work options for older employees who have the maturity and responsibility to balance work and household responsibilities, he thinks both the public and private sectors need to improve the workplace environment. This is not for younger employees who, in my opinion, require additional business relationships. & nbsp,
In order to provide families more freedom to manage their careers and filial obligations, he would also like to see an income-based tax reimbursement for child care. Australia benefits from this thanks to its Child Care Subsidy. Although he believes that the value of the Malaysian currency is” an utmost factor faced today in the brain drain faced by the country ,” and that continued strong economic growth is the best way to strengthen the currency, the corporate side feels that tax subsidies for ongoing training and mentoring of skill will help businesses retain employees and even help mitigate mind discharge.
” It may sound like a mother speech, but we fervently urge the government to put all of its effort and focus into strengthening the market, which will strengthen the currency and control our local inflation so that our workers’ purchasing power can be increased.”
Information is not a rest.
The report’s Pikom forecast that the digital economy of Malaysia will contribute 24.4 % to the overall GDP in 2023, rising to 25.5 % by 2024, exceeding the government’d target set a year earlier.
The Department of Statistics, Malaysia( DOSM ) has the most recent official data available, which shows that the digital economy will account for 22.6 % of GDP in 2021. When the office may update its data is unknown.
.jpg "IT salaries in Malaysia show largest % jump according to Pikom’s Economic and Digital Job Market Outlook 2023")
” The strong escalation of the online economy, adaptable even in the face of world economic turmoil, has cemented its position as a crucial pillar of Malaysia’s economic structure,” said Pikom deputy chairman Alex Liew.
The tactical role of the digital economy in generating employment,” facilitating rural work during and post-pandemic while fostering technological developments and local technology has played an intrinsic role in propelling the society forward ,” Alex continued.
Woon continued,” Data does not exist.” He emphasized,” Our electronic economy is very powerful.”
With security and data analytics, as well as AI, the hot subject of the year, added to analytics roles earning the highest salaries, this translates to solid wage growth in some high require tech roles that has not changed in the most recent report.
.jpg "IT salaries in Malaysia show largest % jump according to Pikom’s Economic and Digital Job Market Outlook 2023")
Despite the robust modern economy and the significant pay increase in 2023, Pikom is worried about a persistent issue Malaysia’s technology industry is dealing with: brain drain. And while the report indicates that Malaysia ranks in the 12th spot when top 10 % salaries are compared to those of 21 chosen markets, Malaysia comes in at number 17 when comparing average pay. This category was created by Pikom to show employers, nbsp, policymakers, and foreign investors how common Malaysian tech salaries stack up against those in both developed and developing economies. & nbsp,
According to Woon, who acknowledged that Pikom also relies on empirical information and lacks data-driven information to be able to provide a clear picture of the issues influencing those who take their tech skills abroad,” this latter point is ephemeral concern and an realistic catalyst for the brain drain of our modern talent with Thailand( in the tenth spot ) then o potential destination for our talent besides persistent favorite, Singapore.”
Pikom’s Economic and Digital Job Market Outlook, which was first released in 2008 and was formerly known as ICT Job Markt Outlook Malaysia until the name was changed in 2020, has come a long way since the eight-page 2008 statement.
With the Asian-Ocean Computing Industry Organization ( ASOCIO ), which has been collaborating with Pikom since 2022, it now consumes 1,500 data points when crunching the data to produce its report and has a regional audience. At the ASOCIO Digital Summit in Seoul in November 2023, the report’s features may be presented.
