How does the 2023 tech salary growth compare to the previous two years?

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The tech sector saw a significant acceleration in salary growth in 2023 compared to the prior two years.

In 2023, the technology sector experienced a year-on-year salary increase of 13.9 per cent. This represents a substantial jump from the more modest growth observed in the preceding two years, which hovered in the two per cent percentile range. This marked acceleration highlights a dynamic shift in compensation trends within Malaysia's tech industry.
Significant Jump in Salary Growth

The tech sector's salary growth rate in 2023 reached 13.9 per cent, a notable figure compared to the previous two years. This period saw salary increases within a much narrower band, specifically the two per cent percentile range. The widening gap underscores a heightened demand or a shift in how talent is being compensated within the industry.
Context of Digital Economy Momentum

This robust salary growth occurs against the backdrop of a strengthening digital economy in Malaysia. The digital economy is projected to contribute 24.4 per cent to the nation's gross domestic product (GDP) in 2023 and is further expected to rise to 25.5 per cent in 2024. This economic momentum is seen as a key factor supporting the increased investment in and compensation for tech talent.
Factors Influencing Salary Increases

Several factors have been identified as contributing to the intensified competition for talent and subsequent salary growth. These include the repatriation of skilled professionals following the pandemic, the impact of a weakening ringgit, and the accelerated pace of digital transformation across the private sector. Additionally, forward-thinking government policies are also cited as playing a role in shaping the employment landscape.

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How does the 2023 tech salary growth compare to the previous two years?

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