Desire for higher salary, better benefits unmet in Malaysia: Research report
KUALA LUMPUR, Malaysia (MNTV) – “Salary and Benefits” records the widest gap between employee expectations and perceptions of what employers in Malaysia offer, according to the 2025 Employer Brand Research report.
While Malaysian talent consistently rank “Salary and Benefits” as the most important employer value proposition (EVP) when considering an ideal employer, this factor drops to 8th place when assessing their current employers.
Fahad Naeem, Country Director at Randstad Malaysia said, “Salary and benefits have consistently been the top priority for Malaysian talent, especially with the growth in job opportunities driven by rapid expansion and rising cost of living.
“However, annual salary increments often fall short of expectations and this gap is a key driver behind the increasing number of Malaysians seeking new employment opportunities for the salary they want.”
Respondents appreciate the convenient location of their current employers, as they experience shorter commute times as a benefit. However, when considering an ideal employer, company location is not a key priority.
As flexible and remote work options become more commonplace, the importance of office location is also increasingly being replaced by the desire for flexible working arrangements.
AI adoption rising quickly in Malaysia
AI adoption is found to be rising quickly in Malaysia, with 33% of respondents now using AI at work—an increase of 11-point from the previous year. The proportion of those who have never used AI in their roles has dropped by 13% year-on-year.
Attitudes toward AI in the workplace are also becoming more positive. This year, 2% more respondents reported feeling optimistic about AI’s impact on their job satisfaction, while 2% fewer expressed concern that AI would replace their jobs.
These shifts indicate that Malaysia’s workforce is increasingly viewing AI as a valuable tool and collaborator, rather than a threat.
“Fostering interest in AI among employees is especially important to many companies as it directly supports their digital transformation,” Naeem said. “Effective AI training programmes not only drive these business goals, but it also equips employees to complement and integrate critical and logical thinking with AI capabilities.
“It is also important for employers to leverage AI tools while ensuring compliance with data protection regulations and a strong grasp of ethical AI practices.”
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