Malaysia: Average Salary increase of 5.7% in 2014

Malaysian employees are expected to see an average salary increase of 5.7% in 2014, higher than the national average salary increase of 5.3% this year, given the good growth prospects for local businesses going forward, according to a latest survey by Towers Watson.

Findings of the "2013 General Industry Total Rewards Survey – Malaysia" also found that employee turnover rate in the general industry in Malaysia has increased to 13.2% in 2013 from 12.3% last year."Manufacturing, conglomerates and financial services industries were experiencing high staff turnover, with manufacturing experiencing 24% employee churn, conglomerates at 14%, business process outsourcing at 19% and financial services at 13.3% this year," said Towers Watson in a statement yesterday, 30th October 2013

It attributed a key reason for the higher turnover rate in the Malaysian general industry to employees feeling that the economy will remain stable despite the uncertain global climate. "Another reason is that local organisations are also actively taking steps to improve their employee value proposition to attract top talent besides offering higher salaries and faster growth opportunities" said Towers Watson global data services practice leader for Southeast Asia, Sean Darilay in a statement yesterday.

He said an earlier Towers Watson's "2012 Global Workforce Study" revealed that 51% of Malaysian employees felt that they have to switch to another organisation to advance in their career or to achieve higher job level, with an "alarming" 83% of them willing to relocate to achieve this. "It is unsurprising that career development is a priority for employees in Malaysia where growth prospects are brighter. As the working class population expands, many young workers are demonstrating a strong desire to build a successful career in line with their aspirations to achieve a better quality of life," Darilay said.

"Employers should also recognise that while pay is still an important element in the equation, the key is to be able to design a comprehensive employee value proposition that balances different drivers and motivators of performance," he added.

Entry level salaries for fresh graduates increased by 8% in 2013 and ranges between RM2,400 and RM2,800 per month. In comparison to this, entry level salaries for MBA graduates range between RM2,600 and RM3,000 per month.

 The survey findings noted that positions in sales, information technology, finance, marketing and customer services/technical support remained as hot jobs. "This is due to the continuous need for organisations to strengthen their brand, improve sales leading to improved ROI and reduce operations costs by improving technology efficiency and productivity," Darilay said.

The "2013 General Industry Total Rewards Survey – Malaysia" saw over 350 organisations from across industries in Malaysia participating. It is an annual survey that provides insights into current compensation practises and trends in Malaysia, thereby aiding organisations to make informed decisions with respect to their total reward programmes.

Source: theSun 31-10-2013

 



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Expats rank Malaysia among best countries to work in

Under the Expat Economics section, the HSBC Expat Explorer Survey 2013, published recently, ranked Malaysia 14th out of a league table of 37 countries, commending its young and dynamic population and a growing economy. The HSBC Explorer Expat Survey 2013 compiled findings from about 7,000 expats worldwide.

Expatriates ranked Malaysia as one of the better places in the world to work in, with Malaysian work culture ranked second in the world, and Malaysians considered the fourth easiest country in which to make friends.

It ranked Malaysia 5th in the world in terms of household income, and 11th where expat satisfaction with the local economy was concerned. The country however fared poorly at 27th in terms of disposable income.

It said that expats were also "upbeat" about Malaysia's local economy, with 41% of them here believing that it was getting better, and that nearly eight in ten expats here were also satisfied with the local economy.

"As a result, few expats are looking to leave the country because of a negative economic outlook, only 15% compared to a global average of 25%," the study said.

The survey however ranked Malaysia's neighbours Thailand, Indonesia and Singapore better in terms of expat-related economics, ranking them 4th, 6th and 9th respectively.

Expats also seemed to be less taken with Malaysia as a second home. The country ranked 20th under the survey's Expat Experience list, behind Thailand and Singapore, which ranked 1st and 6th in the world respectively.

Expats, according to the survey's website, found it easy to make friends here (4th), though integrating into the community was another matter (27th). Organising healthcare was not a problem (5th) for expats, but access to quality healthcare was an issue (29th).

In terms of local work culture, the survey found Malaysia near the top at 2nd, though expats seemed to feel less welcome at work (32nd) than in other countries. A work/life balance was also a problem, with Malaysia at 31st on the list.

Learning and using the local language was also a challenge for expats here, with Malaysia ranking at 23rd and 29th respectively.

Malaysian food was also not seen in a good light. To expats, local cuisine was considered unhealthy (35th). Getting used to it was an issue (31st), and enjoying it appeared to be a problem (34th).

Many expats here however seemed to have a great social life (2nd) and tended to be very sporty (2nd). Also, 54% expats surveyed here believed that Malaysia had a higher quality of life, as opposed to a global average of 45%.

Malaysia could not be ranked under the survey's full list, included in the Expat Survey league table as there was not enough data over the raising of expat children.

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Lonely Planet: Travel list for 2014 and Malaysia is featured.

MALAYSIA has been chosen as one of the world’s Top 10 Countries for next year and the only Asian country to make the list. Lonely Planet has included it in it’s Best in Travel 2014 that is hot off the press.

It will be Visit Malaysia Year next year and besides her perennial attractions and new ones that have  been recently added, there will be all kinds of events and festivities to mark the occasion.

“Among new tourist attractions are the largest bird park in Southeast Asia in Malacca (with 6000 birds featuring 400 species), Legoland Malaysia and Hello Kitty Land in Nusajaya,” the book observes.

“The new second terminal at Kuala Lumpur International Airport (KLIA2), catering mainly to the booming budget-airline sector, is another major factor in attracting more visitors.”

The top three countries/regions listed are Brazil, Antarctica and Scotland in that order. Sweden, Malawi, Mexico, Seychelles, Belgium, Macedonia round it up with Malaysia ending the list.



Lonely Planet focuses on the merits of each destination and the unique experiences they offer to travellers. It features Malaysia as one of the top 10 countries to visit in 2014.

Other 2014 highlights include:

• Top 10 Regions to visit: Sikkim, The Kimberley, Yorkshire, Hokuriku, Texas, Victoria Falls, Mallorca, West Coast New Zealand, Hunan and Ha’apai.

• Top 10 Cities to visit: Paris, Trinidad, Cape Town, Riga, Zürich, Shanghai, Vancouver, Chicago, Adelaide and Auckland.



 

 

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Malaysia: 6th spot in World Bank "Doing Business" report

Malaysia has surged to the sixth position among 189 economies in the latest World Bank Doing Business 2014 report, putting it ahead of economies such as South Korea, Norway, the United Kingdom, Australia and Finland.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Malaysia achieved this well ahead of its target to be among the top 10 by 2015. Last year, Malaysia was ranked 12th.

He said Malaysia achieved first position in Getting Credit and fourth in Protecting Investors six years in a row.

In the area of Trading Across Borders, Malaysia made a breakthrough to fifth position.

Other significant improvements made were in the areas of "starting a business", "“dealing with construction permits", "enforcing contracts", "resolving insolvency", and "getting electricity".

Mustapa said the World Bank further acknowledged that Malaysia was among the economies that improved the most across three or more doing business areas.

World Bank Group President Kim Jim Yong, who appointed an independent panel last year to review the Doing Business report after criticism about it from some of the bank's board members, said he would keep the rankings since they help countries improve their business climates - EPA Photo.

Singapore retained its No 1 spot in overall rankings for the eighth straight year, followed by Hong Kong, New Zealand and the US.

The report judges 189 countries on 10 criteria, such as ease of opening a business and paying taxes, and assigns each country a rank. Since their inception in 2003, the rankings have come to carry a huge weight with governments eager to attract private enterprise.

"Doing Business is not about less regulation, but about better regulation," the World Bank said in the report.

Source: the STAR 29-10-2013

 



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Ringgit against the USD by end 2013 ?

MALAYSIA’S currency, along with several other regional currencies, has regained some lost ground in recent weeks after suffering a major sell-off between August and early September. Quoted at around 3.16 per US dollar as at Oct 24, 2013, the ringgit’s performance represented an appreciation of 5% from Aug 28 when the ringgit fell to a three-year low of 3.33 per unit of the greenback.

And now, analysts believe the direction for the ringgit towards the end of the year is only up, thanks to the return of foreign capital, as concern over the US Federal Reserve planning to wind down their quantitative easing (QE) programme subsides. RHB Research Institute Sdn Bhd expects the ringgit to reach 3.10 per US dollar by the end of this year. This compared with the ringgit’s value at 3.05 against the greenback at the start of 2013. 

“The ringgit, however, is still vulnerable to global swing in risk appetite given that the US fiscal brinkmanship will likely come back to haunt the economy in the early part of the year and expectation of the QE tapering remains,” it warns.

Risks to outlook
According to ADB, economies in developing Asia, including Malaysia, in general face three major risks. These include increased volatility in global and regional financial markets due in particular to uncertainties over monetary and fiscal policies in advanced economies; a more pronounced slowdown in major regional economies, such as China, India and Indonesia, which will affect other economies within the region; and a disruption in the recovery of the Group of Three, or G3, economies, namely the United States, Europe and Japan.

According to ADB, developing Asia’s growth will likely slow slightly this year before picking up next year. In general, it expects developing Asia to grow 6% in 2013, slightly below the 6.1% growth last year, before recovering to a 6.2% growth in 2014.

Source: theSTAR 26-10-2013

 



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Malaysia Health Sector: Budget 2014

The government will provide free Peritoneal Dialysis machine, called the Continuous Ambulatory Peritoneal Dialysis (CAPD), costing RM19,000 per unit, to patients with end state kidney failure to enable them to do the treatment at their own home.

Prime Minister Datuk Seri Najib Abdul Razak said the government realised the difficulty of patients with kidney failure in having to go to the haemodialysis centre for treatment three time a week and spent up to RM400 for each treatment.

The government would continue to provide quality health care and medical services for the people and was allocating RM22.1 billion for the health sector, he said when tabling the 2014 Budget in the Dewan Rakyat today.

He said the allocation would be channelled for various programmes and projects, including the construction of Tanjung Karang Hospital and additional blocks for Jeli Hospital, as well as upgrading of the Kuala Lipis Hospital and 30 rural clinics. The government, he said, had set up 234 1Malaysia clinics and another 50 to be set up next year.

In addition, the government would allocate RM66 million for the purchase of equipment and the construction of additional blocks at the Queen Elizabeth Hospital in Kota Kinabalu, he added.

"To improve the quality of nursing care and reduce the nurses' workload of working continuously in two shifts, the government will appoint 6,800 more nurses with an allocation of RM150 million," he added.

He said an allocation of RM3.3 billion would also be made for the purchase of medicine and medical equipment to ensure patients receive appropriate treatment, including expanding the cardiothoracic services in the Ipoh, Kuala Terengganu, Kuantan and Kuching hospitals.

To address the shortage of parking lots at Kuala Lumpur Hospital, he said, a total of 1,950 new parking lots would be completed next year.

He said hospitals in Rompin and Tampin, as well as the National Cancer Institute, would be operational next year.

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Malaysia: Budget 2014

The Goods and Services Tax (GST), abolition of sugar subsidy, 1Malaysia People's Aid (BR1M) and higher property taxes - these were the highlights of Prime Minister Datuk Seri Najib Tun Razak's Budget 2014.

Najib, who presented his budget speech before Parliament on Friday, 25th October 2013, first shook the House when he announced that the hotly debated GST would be introduced from April 1, 2015 at a rate of 6%.
"With the implementation of GST, the Government will be able to address the weaknesses in the current taxation system.

"As an example, if we were to buy a carbonated drink in a restaurant today, we would not notice that we are paying double taxes, which are sales tax and service tax."With the GST system, consumers will only need to pay tax once and the price of goods should be cheaper," he added.

Najib, who said the 6% GST was the lowest in the Asean region compared with 10% in Indonesia, Vietnam, Cambodia, the Philippines and Laos, and 7% in Singapore and Thailand, added that the Government would also provide a one-off payment of RM300 to BR1M households when GST was implemented. Essential food items will be exempted from GST.

Announcing other tax reductions to offset the introduction of GST, Najib said families with a monthly income of RM4,000 will no longer have any tax liabilities, with individual income tax rates being reduced by one to three percentage points for all taxpayers to increase their disposable income. This, he added, meant that 300,000 taxpayers will no longer pay income tax.

Najib said that certain essential items, however, would be exempted from GST - essential food items, transport services including toll payments, purchase and rental of residential properties and selected financial services.

GST will also not be imposed on basic food items, piped water supply, the first 200 units of electricity per month for domestic consumers, services provided by the Government such as issuance of passports and licences, health services and school education.

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