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Study: Salary Growth in Malaysia is the 3rd Lowest in Southeast Asia, Stagnation Projected Until 2026

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Source: 123RF

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Salary growth isn’t the same everywhere. While some countries are giving their workers a nice pay bump, others are still waiting for that long-overdue raise.

Guess which ones are moving at snail speed? Here’s a look at the countries with the lowest salary growth in Southeast Asia.

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Malaysia ranks 3rd lowest for salary growth

A recent survey by leading global professional services firm AON reveals insights from its 2025 Salary Increase and Turnover Study across Southeast Asia.

The study looked at salary adjustments and employee turnover rates for more than 700 businesses across six Southeast Asian countries.

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So, where does Malaysia stand? The country ranks 3rd lowest in salary growth for 2025, with a salary growth increase of just 4.8%, which is 0.1% lower than 2024.

On the other end of the spectrum, Vietnam takes the top spot with 7.7% growth, followed by Indonesia at 5.7% and the Philippines at 5.3%.

The remaining countries include Thailand in 5th with 4.6% and Singapore with 4.3%.

Here’s the list of the six countries’ salary growth in 2024 and 2025:

  1. Vietnam – 6.4% (2024), 7.7% (2025)
  2. Indonesia – 5.7% (2024), 5.7% (2025)
  3. Philippines – 5.4% (2024), 5.3% (2025)
  4. Malaysia – 4.9% (2024), 4.8% (2025)
  5. Thailand – 4.4% (2024), 4.6% (2025)
  6. Singapore – 4.2% (2024), 4.3% (2025)
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Any chance Malaysia will finally see a pay bump next year?

As much as we’d like to say better days are ahead, the survey shows that overall, budgeted salary increases in Southeast Asia are projected at 5.3% for 2026.

For Malaysia, salary growth is expected to stay the same as this year at 4.8%. Meanwhile, there’s a little light at the end of the tunnel for some other countries, with Thailand at 4.7% and Indonesia seeing 5.9%.

Check out the table below for a quick comparison:

Screenshot 2025 10 14 151035

 

It’s a slow jog in the Southeast Asia salary race, but maybe 2027 will finally throw us a bone (and hopefully a raise).

 

Also read: Study: Workers in Malaysia Have Among The World’s Fewest Paid Leave Days, 6th Worst in Asia

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Source: 123RF
Source: 123RF
Source: 123RF
Source: AON

Follow us on Facebook, Youtube, Twitter, and Instagram for the latest stories and updates daily.



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