CIMA SALARY SURVEY 2013 Malaysia
1 Foreword CIMA s members and students are looking forward to rapid career progression and salary rises well above the national average - despite the continuing economic uncertainty. This optimistic outlook reflects the growing demand for professionally qualified management accountants who are focused on helping organisations in both the public and private sectors - to develop strategies that are successful and sustainable in the long term. Overall, our members and students told us that they are heading for a dynamic future with promotion and attractive earnings packages on the horizon. Their confidence may well have been boosted by CIMA s joint venture with the American Institute of Certified Public Accountants. The result of this alliance is a new global designation, the Chartered Global Management Accountant (CGMA). The CGMA designation is rapidly gaining globally acceptance as a mark of unparalleled excellence in business and financial management. On average, CIMA members are earning just under RM200,000 per annum while CIMA fellows are commanding significantly more at around RM303,000. Moreover, our students in Malaysia earn on average c RM66,000 per year The 2013 survey figures for average basic salaries represent a 10% increase compared with last year s figures for qualified members. There was also a 3% increase for students. However there is still a considerable gender gap among members where, on average, women earn RM63,015 less than their male counterparts. CIMA is working hard to address this issue, and there are signs that the younger generation is beginning to close the imbalance: the gap between male and female students is significantly lower at just over RM1,000. Ambition is a key driver for both members and students; 56% of members and 54% of students said they want to develop their leadership skills, and the vast majority of our members and students (91%) expect to be in a different role in three years time, while almost half (45%) expect to be in a senior, finance-related role. The growing diversity of CIMA members as business partners is reflected in that 20% anticipate being in a very senior, non-finance role such as CEO or leading a non-finance division. Our survey also revealed a preference for a more flexible approach to career progression, with key workplace motivator being a desire for flexibility/work-life balance (53%), followed by a good working environment (41%) and financial reward (40%). Combined, these responses give a clear indicator to employers of what they should be offering if they want to attract the very best in management accounting expertise. Irene Teng Regional Director - ASEAN & Australasia CIMA
2 Salary survey results Malaysia average salary figures In 2013, qualified CIMA members in Malaysia are earning on average RM173,285 in basic annual salary plus RM25,955 in bonus payments, totalling RM199,240 per year. Part qualified students in Malaysia are earning on average RM58,801 in basic annual salary plus RM6,874 in bonus payments, totalling RM65,675 per year. Salary satisfaction Of qualified members, 63% are satisfied with their current salary compared with 41% of students. This gives an overall average figure of 58%, a slight decline since 2012 and 2011, when 63% were satisfied with their salary. Our survey shows that the average salary for members has increased by 10% since 2012, while there has been a smaller increase of 3% for students, which may help to explain the difference in salary satisfaction between members and students. Salary increases anticipated Over the next 12 months 95% of part qualified students expect to receive a salary increase, at an average rate of 8.4%. It should be noted that around two-fifths anticipate a smaller than average increase, but the vast majority anticipate an increase in line with or above the price inflation forecast of 2.2%. 1 Among CIMA members, 91% expect a salary increase, at an average rate of 6.1%. Although 66% anticipate an increase below this average, the majority (88%) expect an increase roughly in line with or above the price inflation forecast. Bonus is an important part of total salary Bonus forms an important part of total annual salary. 93% expect to receive one, including one-third (31%) who anticipate a bonus of 20% or more on top of basic salary. The average annual bonus payment among those who will receive one is 14.5% for members and 11.7% for students. Qualification boosts salary deals 77% of all students agree that the CIMA qualification strengthens their position in salary negotiations. In particular, all students at operational level agree (100%). 2 On average CIMA members earn c.rm199k per year and students earn c. RM66k. 77% of all students agree that the CIMA qualification strengthens their position in salary negotiations. Figure 1: Annual remuneration by CIMA level RM199,240 RM65,675 Part qualified students Qualified members 1 IMF World Economic Outlook April 2013. Available at: http://www.imf.org/external/pubs/ft/weo/2013/01/ Accessed 25 June 2013. 2 Although this figure is based on a small number of respondents (13), it represents a statistically significant difference against the percentages among students at other levels of the qualification.
3 70% of CIMA members and students are employed in large businesses with 250 or more employees, where average earnings are higher. Salary patterns Annual remuneration by city Average annual earnings for members and students in Kuala Lumpur are higher than both the CIMA national average and earnings in Selangor. Students in Kuala Lumpur earn 4% more than the national average and 6% more than the average for Selangor. Members earn 8% and 23% more respectively. These differences seem to have an impact on satisfaction with salary, with 61% of those in Kuala Lumpur being satisfied, compared to 51% in Selangor. The largest sectors in terms of employment of CIMA members and students are manufacturing and engineering (23%), construction and property (10%) and retail and consumer goods (10%). However, in Kuala Lumpur a focus on high-earning industries such as banking, and financial services is a likely reason for the higher than average remuneration figure, in addition to differences in living costs. Annual remuneration by business size 70% of CIMA members and students are employed in large businesses with 250 or more employees. On average, these large businesses pay members 23% more and students 18% more than micro/small/medium businesses. The higher average salaries in large businesses can be explained by the greater availability of senior finance-related and non-finance roles available, and the predominance of the banking sector in this category. Figure 2: Annual remuneration by business size Malaysia total part qualified students RM58,801 RM65,675 Malaysia total qualified members RM173,285 RM199,240 Micro/small/ medium (1 249 employees) RM53,540 RM58,585 Micro/small/medium (1 249 employees) RM140,219 RM159,359 All large (250+ employees) RM61,424 RM69,307 All large (250+ employees) RM186,057 RM214,564 Lowest base: Micro/small/medium (1-249 employees) (31) Highest base: All large (250+ employees) (62) 250 999 employees RM170,000 RM191,889 1,000 9,999 employees RM198,043 RM230,300 10,000 or more employees RM186,310 RM216,224 Lowest base: 250 999 employees (35) Highest base: Micro/small/medium (1-249 employees) (49) Basic salary Bonus Total
4 Business and the economy Expectations for future pay and conditions Amid continuing global economic uncertainty and uneven recovery in Western markets, the Malaysian economy is forecast to grow by an encouraging 5.1% in 2013. While this forecast is lower than 5.6% growth achieved in 2012, the 2012 figure exceeded expectations of 4.4% growth. 3 There is evidence of a cautiously improving outlook among CIMA members and students. Almost two-fifths (37%) expect an increase in business profitability and one-third (33%) anticipate an increase in headcount, at a similar level to previous years. Salary increases across the board are anticipated by 25%, slightly down on previous years, but at the same time the proportions expecting negative factors of falling profits (19%), budget cuts (27%) and a recruitment freeze (19%) have also fallen slightly since 2012. Increased outsourcing, more money available for future investment and increased mergers and acquisitions activity are each anticipated by 15% of members and students. This is encouraging, although slightly lower than figures reported for 2011. The Malaysian economy is forecast to grow by an encouraging 5.1% in 2013 and there is evidence of a cautiously improving outlook among CIMA members and students. Figure 3: Expectations for the business environment over the coming 12 months selected indicators Business process/policy changes 52% 43% 57% Increase in the overall profitability of business 37% 33% 39% Increase in staff recruitment 33% 32% 29% Budget cuts 27% 30% 25% Salary increases Recruitment freeze Greater focus on regulatory issues 19% 22% 17% 25% 30% 30% 19% 23% 33% Fall in the overall profitability of business Increase in outsourcing 19% 23% 22% 15% 16%20% Increased mergers/acquisitions More money available for future investment 15% 16% 17% 15% 15% 18% 2013 2012 2011 3 IMF World Economic Outlook April 2013. Available at: http://www.imf.org/external/pubs/ft/weo/2013/01/ Accessed 25 June 2013.
5 93% of members and students agree that the CIMA qualification strengthens their ability to move internationally with their career. Working conditions Working hours On average, Malaysian members and students work 48 hours per week, although almost onethird (29%) work longer hours. Overall, 44% of members and students expect their working hours to increase over the coming 12 months, while more than one-half (53%) expect no change. By far the most influential reason for increasing hours relates to career progression taking on more responsibility was cited by 71%. Other contributory factors are understaffing/lack of resource (44%), company growth (42%) and a change in role (37%). Members and students based in Kuala Lumpur are more likely than those in Selangor to be expecting increasing working hours due to expansionary factors: taking on more responsibility/more pressure (78% vs. 59%) and company growth (51% vs. 24%). By contrast, those in Selangor who anticipate increased working hours are slightly more likely to cite understaffing/lack of resource (50% vs. 44%) and the current financial climate (17% vs. 11%). Motivators at work The key motivator at work for both members and students is flexibility/work-life balance (52%). A good working environment (41%), financial reward (40%) and scope of the role (39%) are other important motivators for around two-fifths. The benefits package is an important motivator for one-third (32%) of CIMA members and students, along with a challenging workload (28%) and job security (22%). The CIMA qualification strengthens my ability to move internationally with my career The CIMA qualification creates career opportunities for me 83% agree 82% agree The CIMA qualification strengthens my ability to move across all areas of the business 79% agree
6 Career plans Seeking new opportunities Only 9% of qualified members and part qualified students see themselves in the same role in three years time, suggesting a high degree of mobility and promotion prospects. While 45% anticipate being in a senior finance-related role such as finance manager, financial director, financial controller, CFO, head of accounting/finance or self-employed practitioner, 20% anticipate being in a very senior non-finance role such as CEO/MD, head, director, or manager of a non-finance division. Among all members and students, 28% are planning to find another job over the next six months and a total of 61% are planning to move job within the next two years. A global career Among the 18% of members and students who plan to seek employment abroad, the most popular planned destinations are Singapore (55%) and Australia (49%). Hong Kong (33%), the UK (20%) and New Zealand (16%) are also favoured by notable proportions. Members and students working in Kuala Lumpur are more likely to be planning a move abroad in the next two years: 23% working in the capital plan to relocate compared to 10% of those in Selangor. Seeking improvements in salary (67%) and quality of life (63%) are key factors to planned relocation, while a similar proportion (66%) also look forward to experiencing a different culture. Better and/or new employment opportunities and a promotion were each cited by almost one-half of those planning to relocate. 91% anticipate being in a new role in the next three years. 20% expect to take up a very senior nonfinance role such as CEO/MD, head, director, or manager of a non-finance division. 61% are looking to move job within the next two years, of which 82% plan to stay in Malaysia 18% plan to move abroad
7 Over the coming 12 months, part qualified students will be focusing on developing a broad range of managerial, communication and management accounting skills. Building skill sets Over the coming 12 months, part qualified students will be focusing on developing a broad range of managerial, communication and management accounting skills. More than one-half (54%) want to develop their leadership skills. A range of other skill sets are considered important, as one-half will focus on personal development skills (such as time Figure 4: Top skills that members and students wish to develop management), communication, data analysis and decision making. Developing leadership skills remains important for more than one-half (56%) of qualified members. However, data analysis becomes less important in favour of strategic planning and implementation (53%) and persuading and influencing (42%). Part qualified students Qualified members 54% Leadership 56% Leadership 50% Personal development 49% Communication 49% Data analysis 49% Decision making 46% Strategic planning and implementation 41% Project management 40% Skills for developing others 40% Risk management 36% Persuading and influencing 32% Financial reporting 53% Strategic planning and implementation 42% Persuading and influencing 36% Change management 36% Decision making 35% Communication 33% Problem solving 33% Risk management 33% Personal development 31% Relationship management 31% Skills for developing others 20% Project management 20% Operational management
8 Appendix Malaysia Base Basic salary Part qualified students Bonus Total package ** Base Qualified members Basic salary Bonus Total package ** Total 93 58,801 6,874 65,675 172 173,285 25,955 199,240 Age Up to 25 years 17* 37,465 3,510 40,974 25 34 years 53 52,926 5,426 58,352 35 44 years 20* 84,325 11,795 96,121 45+ years 3 *** *** *** Age Up to 31 years 18* 106,806 15,045 121,851 31 35 years 31 142,016 16,384 158,400 36 40 years 88 194,574 30,933 225,507 41 years and over 22* 248,636 38,278 286,915 Gender Male 40 59,893 6,417 66,311 101 194,876 30,376 225,252 Female 53 58,025 7,199 65,224 71 142,570 19,667 162,237 Level Operational / Management 24* 56,342 7,009 63,352 Strategic 43 61,744 6,723 68,467 T4 professional competence 26* 54,135 6,918 61,053 Associate 159 166,148 24,646 190,794 Fellow 13 *** *** *** Size of organisation Micro/small/ medium (1-249 employees) All large (250+ employees) 31 53,540 5,046 58,585 49 140,219 19,140 159,359 62 61,424 7,883 69,307 123 186,057 28,507 214,564 250-999 21 *** *** *** 35 170,000 21,889 191,889 1,000 9,999 17 *** *** *** 46 198,043 32,257 230,300 10,000 or more 24 *** *** *** 42 186,310 29,915 216,224 *Caution: Low base, under 30. **Figures may not sum due to rounding. *** Data unavailable due to low base numbers.
9 Appendix Malaysia Base Basic salary Part qualified students Bonus Total package ** Base Qualified members Basic salary Bonus Total package ** Total 93 58,801 6,874 65,675 172 173,285 25,955 199,240 City Kuala Lumpur 43 60,414 7,709 68,122 76 193,980 30,065 224,046 Selangor 37 58,857 5,607 64,463 63 157,738 24,810 182,548 Experience since enrolling Up to 1 year 7 *** *** *** 1 3 years 30 46,901 4,882 51,782 3 5 years 15* 58,393 7,343 65,736 5 or more years 30 77,729 9,959 87,687 Experience since qualifying Up to 5 years 41 104,017 14,033 118,050 6 9 years 20* 154,000 21,959 175,959 10 19 years 73 175,822 25,996 201,818 20+ years 38 251,184 40,646 291,831 *Caution: Low base, under 30. **Figures may not sum due to rounding. *** Data unavailable due to low base numbers.
10 Technical information Survey responses were collected by CIMA among active qualified members and part qualified students between 25 April and 19 May 2013, via an online survey. The data was analysed and reported by an independent specialist consultancy. Approximately 25,000 qualified members and just over 21,000 part qualified students were selected and invited to participate in the international study, which covers 23 markets in total. Within the study period 6,039 responded internationally, including 265 from Malaysia. The response data presented in this report has been weighted to reflect the profile of CIMA qualified members and part qualified students by market and level of study. All base numbers quoted in figures report the unweighted base; i.e. the number of responses. Further information For further information on technical matters relating to this survey, contact yourvoice@cimaglobal.com For further country specific analysis and reports, visit CIMA MY JOBS at http://myjobs.cimaglobal.com Acknowledgements This research was conducted by CIMA in conjunction with Spotlight Market Research & Editing. The Chartered Institute of Management Accountants is a Market Research Society Company Partner. Both CIMA and Spotlight abide by the Market Research Society s Code of Conduct and the Data Protection Act.
CIMA Malaysia: head office CIMA Malaysia, Lot 1.05, Level 1, KPMG Tower, 8 First Avenue, Bandar Utama, 47800 Petaling Jaya, Selangor Darul Ehsan T: +60 (0)3 77 230230/232 E: SEAsia@cimaglobal.com September 2013, Chartered Institute of Management Accountants