Median wages of formal citizen employees rose by 4.9% in June 2023 to RM2,600 as compared to June 2022 – DOSM   

Inve$t | Market Sentiments | 01 December 2023

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According to the Department of Statistics Malaysia Chief Statistician, Dato’ Sri Dr Mohd Uzir Mahidin, the median wages of formal citizen employees rose by 4.9% in June 2023 to record RM2,600 as compared to June 2022. The compilation of these statistics is based on administrative data sources obtained from relevant agencies, which focus on the citizens who work in the formal sector, notably in the private sector.  

Commenting further on the report, he said that the number of Malaysian formal employees in June 2023 was 6.60 million persons, an increase of 1.6% compared to the same month in the previous year. This number accounted for nearly two-thirds (64.3%) of the total citizens-paid employees in the formal sector.  

In the meantime, the median monthly wages in June 2023 increased by 4.9% y-o-y to register RM2,600. Looking at the comparison by gender, male formal employees comprised 55.5% (3.66 million persons) of the total formal employees in June 2023, received higher median monthly wages than females. The median monthly wage for male formal employees stood at RM2,645 while female formal employees who made up 44.5% (2.94 million persons) of total formal employees earned RM2,527.   

Looking at detailed wages statistics by age group indicates the group that recorded the highest median monthly wages in June 2023 was 45 to 49 years which received RM3,500. This age group also received the highest median monthly wage in April 2023 (RM3,582) and May 2023 (RM3,482). Comparing June 2023 to the same month in the previous year, all age groups experienced an increase in median monthly wages, except for those below 20 years.  

The age group 60 to 64 years demonstrates the highest year-on-year growth in June 2023 which increased 11.7% to RM2,764. Meanwhile, in April 2023, the age group below 20 years enjoyed the highest y-o-y growth (25%), the highest for four consecutive months since January 2023. However, the age group below 20 years recorded slower growth of median monthly wages in May 2023 (y-o-y growth: 5.5%) and stagnant in June 2023 (y-o-y growth: 0.0%) due to the base effect of the implementation of the new minimum wage rate of RM1,500 in 2022 had subsided. For the full report, please click this link.

Local financial markets affected by global investor sentiments in October 2023 – BNM 

According to Bank Negara Malaysia (BNM), domestic financial markets were mostly affected by global investor sentiments last month. The global financial conditions were influenced mainly by the rise in the 10-year US Treasury yield as strong US economic data led to growing investor expectations of a higher policy rate environment. Against this backdrop, the 10-year Malaysian Government Securities yield increased by 14bps in October (regional average: +22 bps) while the Ringgit depreciated by 1.6% against the US dollar (regional average: -0.3%). The central bank observed this in its latest monthly financial and economic highlights. Meanwhile, the FTSE Bursa Malaysia KLCI rose by 1.3% amid improved domestic equity market sentiments post-Budget 2024.  

Banks remained well-capitalised to support economic growth. Capital ratios were broadly stable, supportive of banks’ financial intermediation activities and bolstering their ability to withstand unexpected losses. The banking system’s excess capital buffer remained healthy at RM132.6 billion in October. The banking system continued to record healthy liquidity buffers with the aggregate liquidity coverage ratio at 150.8% (September 2023: 151.5%). The aggregate loan-to-fund ratio remained largely stable at 82.2% (September 2023: 82.5%). 

Credit to the private non-financial sector grew by 4.2% as at end-October (September 2023: 4.2%), underpinned by higher outstanding household loan growth amid slower growth in credit to businesses. Outstanding business loans expanded by 1% in October (September 2023: 1.6%), due mainly to more moderate growth in working capital loans among non-small and medium enterprises (non-SMEs). Growth in outstanding loans to SMEs, however, remained forthcoming at 6.9% (September 2023: 6.7%). Growth in outstanding corporate bonds, meanwhile, was sustained at 5%. 

For households, outstanding loan growth improved slightly to 5.6% (September 2023: 5.4%), supported by higher growth across most loan purposes. This reflected higher demand for household loans, particularly for the purchase of houses, cars and personal use. 

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