Big money in oil sector

Wednesday June 25, 2008

KUALA LUMPUR: The oil and gas sector and the information technology industry saw the sharpest increases in salary, a survey has shown.

According to outsourcing and consulting group Kelly Services, which conducted the 2007/08 survey, base salary in both sectors increased by 30% followed by the engineering sector at 28%.

“Commodity-based companies like oil and gas and oil palm are able to absorb the salary increase as there is continued demand for their products and by-products,” said consulting director Anthony Devadoss at the launch of the Malaysia Salary Handbook 2008/09: A Practitioner’s Insight To Salaries Across Industries, here, yesterday.

“Both sectors also recorded an increase in hiring opportunities,” he said, adding that generally, “Malaysia experiences the most stable salary increment compared to India, Singapore and China.

“There is a 6% to10% increase annually, which is steady.”

He said that the survey, conducted during the first quarter of this year across salary trends among companies in the country, also found a robust situation in employment opportunities.

“There is an increase in the manufacturing, IT, engineering, marketing services and banking sectors with new job titles to cater to changing demands,’’ he said.

High value-added investments, which create jobs that command high incomes, and investment in human capital could form some of the core elements of sustaining growth.

Although most industries would see an increase in increment, there were sectors which would be hit, especially, with the economic uncertainties.

“With the price hike in food and fuel, businesses such as retail, FMCG (fast-moving consumer goods) companies, tourism, travel and automotive are much likely to be affected due to reduced and cautious consumer spending.

“Thus, an increase in salaries will be a tight squeeze for them,” he said. “These sectors will definitely take a cautious stand in raising salaries,” he added.