A recent survey by Mercer revealed that Malaysian professionals, despite being highly skilled, have the second-lowest salaries among six major markets in the region.
The study compared the affordability of an iPhone 16 across China (Shanghai), Hong Kong, Malaysia, the Philippines, Taiwan, and Thailand. This luxury item was chosen as a symbol of relative purchasing power.
The findings showed that Malaysian professionals need to dedicate a larger portion of their annual salary to purchase an iPhone 16 compared to their counterparts in Thailand (4.2%), Taiwan, China (Shanghai), and Hong Kong (1.3%). Hong Kong professionals emerged as the highest earners, requiring only a fraction of their annual income for the same device.
This disparity highlights a significant income gap between Malaysian professionals (4.3%) and their regional peers. While the cost of living varies across these countries, the study suggests that Malaysian professionals are not adequately compensated for their skills and experience relative to their regional counterparts.
Furthermore, the study found that this trend extends to management and executive levels as well. This indicates a systemic issue within the Malaysian job market, where high-skilled professionals may not be receiving competitive salaries.
The Philippines, on the other hand, fared worse than Malaysia in this regard. Filipino professionals required a significantly higher percentage of their annual income (5.4%) to afford the iPhone 16, further emphasizing the income disparities within the region.
In essence, the Mercer survey provides compelling evidence that Malaysian professionals are underpaid compared to their peers in other major Asian markets. This has significant implications for the country’s competitiveness and the overall well-being of its highly skilled workforce.
