Digital talents in Malaysia are seeing higher salaries as demand surges for skills in artificial intelligence (AI), data science, cloud computing and cybersecurity, driven by the rapid digital adoption across the nation.

Salary growth is projected to stabilise at 7.19% this calendar year and 7.12% in 2025, according to the Economic and Digital Job Market Outlook 2024-25 report by the National Tech Association of Malaysia (PIKOM).

Speaking at the unveiling of the report, PIKOM chairman Ong Chin Seong said that these growth rates represent a return to healthy, sustainable levels.

“The double-digit salary growth of 13.90% recorded in 2023 was a one-off adjustment following the salary stagnation during the pandemic years. We are pleased to see this healthy adjustment to above 7%, which is reflective of a robust digital economy,” said Ong.

He added that the sustainable salary increments is critical to address ongoing brain drain of digital talents to economies offering significantly higher remuneration.

PIKOM research committee chair Woon Tai Hai, meanwhile, said that the nation’s digital economy continues to drive significant impact, serving as a cornerstone for Malaysia’s long-term growth and competitiveness.

“With strong government support, increasing private sector collaboration, and a growing pool of skilled digital professionals, Malaysia is well on our way to becoming a regional digital leader,” said Woon.

“The opportunities are immense, and if we remain focused on nurturing talent, fostering innovation and bridging salary gaps, we as a nation can continue to unlock the full potential of our digital economy and solidify our position on the global stage.”

Malaysia, however, is facing increasing competition from regional neighbours for our local digital professionals.

“Malaysia must continue to prioritise creating a conducive environment for digital professionals to thrive, from competitive salaries to opportunities for career advancement,” added Woon.

According to the study, Malaysia's digital economy is projected to contribute 24.1% to GDP in 2024, nearing 25% by 2025.  With the tech industry poised for continued expansion, the outlook remains bright for both businesses and professionals in the field.

“Tech salaries have demonstrated a healthy 10-year average annual growth rate (AAGR) of 5.3%, a trend expected to sustain through 2025. This stability reflects the industry's resilience and the increasing value placed on digital expertise,” said Woon.

Notably, salary growth has accelerated significantly in high-demand domains such as AI  development, cloud computing, cybersecurity and data science.

On the broader economy, PIKOM forecasts Malaysia’s GDP to grow by 4.8% to 5.3% in 2025. This growth is expected to be driven by robust private consumption, a rebound in exports and increased capital formation, building on the strong performance anticipated in 2024.

The Malaysian Ringgit is also expected to strengthen to RM4.30 to USD1 in 2025 from RM4.50 in 2024. Inflation, however, is set to climb from 3% to 4% next year.

The Economic and Digital Job Market Outlook 2024-25 report, published in collaboration with JobStreet by SEEK and Talent Corporation Malaysia Berhad (TalentCorp), offers a comprehensive analysis of salary trends for digital talents.

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