KUALA LUMPUR (Dec 4): Malaysia’s digital workforce salaries lag regional peers and leading global markets in both average and top-tier jobs, according to the latest data by the National Tech Association of Malaysia (Pikom) during the release of its Economic and Digital Job Market Outlook 2025 report.

The report benchmarks the salaries in Malaysia using the US dollar against 21 countries by job category and purchasing power parity (PPP) — a macroeconomic tool that compares the buying power of different countries’ currencies using a common basket of goods.

In terms of average salary by job category, Malaysia ranked near the bottom at 18th place overall, behind Singapore and Thailand within the region.

On a PPP basis, Malaysia ranked 16th overall. China topped the PPP-adjusted salary scale among the surveyed countries, followed by Singapore and South Korea.

According to Pikom research committee chairman Woon Tai Hai, Malaysia’s digital job salaries are moving marginally upwards for junior to senior management roles, but technical positions remain a concern due to slower wage progression and persistent talent shortages.

“Both the government and education sector have to work together to make sure that our talent is competitive along with technology growth, even with the increasing minimum wage,” said Woon.

Malaysia’s low rankings amongst the 21 countries reflect limitations in attracting and retaining senior technical talent, according to Pikom. The report noted that currency fluctuations and a weaker ringgit in 2024-2025 have also widened this gap, affecting wages for skilled professionals.

At the upper end of the market, Malaysia’s top 10% earners in the US dollar also fell below global benchmarks, coming in at 18th place overall. The US, UAE, Qatar, Hong Kong and Singapore dominated the highest-paying tier, with salaries far outpacing Malaysia’s top brackets.

For the top 10% earners on a PPP-adjusted basis, Malaysia ranked 13th place, showing that top earners fared slightly better compared to those earning average salaries.

The findings come as Malaysia positions itself to capture rising foreign investment in AI infrastructure and data centres. Despite strong inflows of digital investment where Malaysia is projected to reach RM3.6 billion in data centre revenue, Pikom noted that the domestic supply of high-skilled professionals remains insufficient, especially in areas such as AI engineering, machine learning, cloud architecture and cyber security.

Solutions architects, which is one of the highest-paid technical roles, take home an average of RM15,516 a month in Malaysia, with the top 10% earning RM25,083. While this places them at the top of the domestic technical salary tier, their earnings fall below regional and global benchmarks for equivalent high-skill roles.

Meanwhile, support technicians sit at the bottom of the scale with average monthly salaries of RM2,832 to RM2,837.

By comparison, Malaysian digital professionals earn an average of RM4,422 across technical jobs, well below the broader workforce average of RM8,001.

The widest gaps in salary appear in positions where leadership, specialised capability and risk oversight carry greater responsibility, according to the Economic and Digital Job Market Outlook 2025 report.

The figures were compiled from platforms such as Payscale and SalaryExpert, which indicated that earned salaries — actual take-home pay reported by employees — remained below advertised ranges on job seeking websites.