CIMA Malaysia salary survey 2007/2008

Malaysia salary survey Contents

Contents

1. Executive Summary 2

2. Demographic profile 4

3. Salaries and bonuses 7

4. Benefits 9

5. Sector analysis 11

6. Hours of work 13

7. Satisfaction 15

1

Malaysia salary survey Executive summary

2

Executive Summary

Between August and September 2007 CIMA conducted a salary survey with CIMA qualified professionals in Malaysia.

Accountants and finance professionals are among the most highly sought after vocations in the world. Major employers seeking accountants compete fiercely for new recruits every year. As a result, Chartered Institute of Management Accountants (CIMA) professionals are constantly in demand. CIMA is the only professional body that qualifies accountants solely for business. CIMA members have an increasingly pivotal role to play in driving business success at the heart of the organisation – providing the basis for support for strategic decision.

By the time Malaysia achieves its expected developed nation status by 2020, the country may have a shortage of 60,000 accountants. The accounting industry is already feeling the pinch as several countries are luring Malaysian accountants with salary offers of four times their earnings1 .

This survey not only looks at how much a qualified CIMA member earns in Malaysia, but also the types of benefits they receive and how far this matches their expectations. The report has been split into the following sub-sections:

Demographic profileSalaries and bonuses Benefits Sector analysis Hours of workSatisfaction.

The survey was sent to all 1,639 CIMA members in Malaysia for whom we have an email address. Of these, 213 useable responses were received, representing a response rate of 13.0%.

The demographic profile of a typical respondent to this survey is a 42 year old ACMA financial professional with 13 years post qualified experience.

The average monthly salary for a qualified CIMA professional in Malaysia is RM120,000 per annum, compared with the national average income for Malaysia as a whole, which stands at just RM21,000 per annum2 – representing almost a six-fold difference. CIMA members working in the media sector receive the highest salaries by far, equating to RM175,000 per annum.

Nine out of ten of CIMA members working in Malaysia are expecting a bonus in 2007. The average bonus potential is RM25,000, with a privileged 2% expecting to receive bonuses in excess of RM100,000. On average, newly qualified members are expecting higher bonuses in 2007 than those with between one and ten years post-qualified experience. This reflects the strong levels of demand for newly qualified CIMA members in Malaysia. Newly qualified members are, on average, expecting to receive a bonus in the region of RM20,800 in 2007. This is almost the same as the average national income in Malaysia of RM21,000 per annum.

••••••

1 Source: The Star, 27 August 20072 Department of Statistics Malaysia, Q1 2007

Malaysia salary survey Executive summary

3

Bonuses top the list of benefits received with 87% entitled to a bonus. This is also considered to be the most important benefit, with none of the 213 respondents to the survey saying that this benefit was of no importance to them. Of the most desired benefits, the two that organisations are failing to meet most in terms of staff requirements are pensions and life assurance.

The typical working week for a qualified CIMA member is 49 hours, with the longest hours being worked by:

those aged 51 and over, who on average work a 51 hour weekwith a typical working week of 53+ hours, CEO’s/Managing Directors along with

Financial Controllers work far longer hours than their colleagues in other job rolesthose working in accountancy practices, media and manufacturing all clock up 51

hours in a typical working weekthose on the lowest salaries of less than RM30,000 who work longer than any other

group at 59 hours per weekthose working for larger organisations with a global turnover of more than RM500

million, who typically work around 50 hours per week.

Almost three-quarters (73%) of qualified CIMA professionals are satisfied with their current salary and benefits package, of which the majority (54%) are ‘fairly satisfied’. Unsurprisingly, those earning over RM100,000 are most satisfied with their current remuneration packages.

••

•

•

•

4

Malaysia salary survey Demographic profile

Demographic profile

Distribution of CIMA members

Although CIMA Members are geographically dispersed all across Malaysia, the majority of respondents are concentrated in the two states of Kuala Lumpur (40%) and Selangor (38%).

Post-qualified experience

Respondents from Malaysia had an average of 13 years post-qualified experience, with more than four in ten having experience of between ten and 19 years.

Figure 1. Distribution of members by Malaysian state

Figure 2. Number of years post qualified experience

5

Malaysia salary survey Demographic profile

Grade

Despite having an average of 13 years post-qualified experience between them, 84% of respondents were Associate members or ACMAs and 16% Fellows (FCMAs).

Age

The average age of a respondent to this survey was 42. Four out of ten are aged between 41 and 50, with just 3% under the age of 31, 15% aged 31-35, 30% aged between 35 and 40 and 12% aged 51 years and over.

Gender

The split between male and female respondents was 58:42, which mirrors the profile of CIMA members in Malaysia where 59% are male and 41% female.

Figure 3. Age profile

6

Malaysia salary survey Demographic profile

Job functions

CIMA members are employed across a broad range of job functions, demonstrating the breadth and flexibility of the qualification. Over one-quarter (28%) of respondents are employed as a Finance Manager, 14% as an Accountant and a further 9% are employed as Financial Directors.

Sector

CIMA members are represented across a broad range of sectors. Most notably they are represented in the manufacturing sector, which employs 30% of CIMA members in Malaysia. Other sectors employing a relatively high proportion of CIMA members include retail (9%), financial services (9%) and accountancy practices (7%).

Figure 4. Job title

Figure 5. Sector

7

Malaysia salary survey Salaries and bonuses

Salaries and bonuses

Salaries

The gross annual average salary for a CIMA member working in Malaysia is RM120,000. This compares to the national average income of RM21,0003. The proportion of members is fairly evenly distributed across the salary ranges, with the highest proportion of members (20%) in the RM75,000 to RM99,999 salary bracket, and just 2% are earning less than RM39,999. The broad spread of salaries reflects the different job roles that CIMA professionals are employed in and their differing career stages.

CIMA members working as CEO’s/Managing Directors are in the best paid jobs, earning, on average, RM225,000. Unsurprisingly, Financial Director’s are also near the top of the pay scale, receiving on average RM205,885 per annum. At the bottom of the pay scale are Finance and Business Analyst who earn an average wage of RM78,000.

3 Source: Department of Statistics Malaysia

Figure 6. Gross annual salary (RM)

Figure 7. Gross annual salary by job title

8

Malaysia salary survey Salaries and bonuses

Bonus potential in 2007

Nine out of ten CIMA members working in Malaysia are expecting a bonus in 2007, with the average bonus potential equating to RM25,000. Almost one-third (31%) are expecting to receive a bonus of between RM10,000 and RM24,000, with a further 23% expecting a bonus of between RM5,000 and RM9,999 this year. A privileged 2% are expecting to receive bonuses in excess of RM100,000.

On average, newly qualified members are expecting higher bonuses in 2007 than those with between one and ten years post-qualified experience. This reflects the strong levels of demand for newly qualified CIMA members in Malaysia. Newly qualified members are, on average, expecting to receive a bonus in the region of RM20,800 in 2007 in addition to an annual salary of RM90,065. At RM20,800, bonuses for newly qualified CIMA members is almost the same as the average national income of RM21,000 per annum across all full-time occupations in Malaysia.

Figure 8. Annual bonus potential for 2007

9

Malaysia salary survey Benefits

Benefits

Bonuses top the list of benefits received with 87% entitled to this benefit. Other prominent benefits received include healthcare (77%), and company car/allowance with just over half (52%) of employees entitled to this. A sabbatical is the benefit least offered by companies in Malaysia, with just 2% of organisations offering this as a staff benefit.

In terms of importance of benefits, a bonus was by far considered to be the most important benefit, with none of the 213 respondents to the survey saying that this benefit was of no importance to them (see Fig 10). Healthcare, pensions and life assurance were also considered highly important benefits among staff.

Figure 9. Benefits received

Figure 10. Importance of benefits

10

Malaysia salary survey Benefits

Although the majority of companies offer bonuses and healthcare, which are considered the two most important benefits amongst employees, there are some areas in which organisations could improve staff satisfaction. Of the benefits most desired, the two that organisations are failing to meet most in terms of staff requirements are pensions and life assurance. Despite 91% of respondents stating that pensions are important to them, just 12% receive a company pension. Likewise with life assurance, although 91% agreed that this was important to them, just 41% of organisations offered this as a staff benefit.

Figure 11. Importance of benefits vs benefits received

Importance

Rece

ived

11

Malaysia salary survey Sector analysis

Sector analysis

A typical CIMA member in Malaysia has 13 years post-qualified work experience. However, with 21 years worth of post-qualified experience, those working in accountancy practices typically have the highest number of years experience. The sector with the least experienced CIMA members is the Media sector, where the average length of post-qualified work experience is 8 years. Interestingly though, with an average annual salary of RM175,400, those working in the Media sector are earning higher salaries than any of their counterparts.

The average salary does not differ greatly between most sectors and ranges from RM100,000 in property and real estate up to RM122,000 in the retail sector. The only exceptions are salaries in the public sector, which are, on average, much lower at RM75,000 and the media industry where wages are far more favourable averaging just over RM175,000.

Figure 12. Number of years post-qualified experience by sector

Figure 13. Gross annual salary by sector

12

Malaysia salary survey Sector analysis

There is a clear divide in 2007 between bonus expectations for those in the top, middle and bottom tiers. Those working in the financial services sector, retail and media are expecting their bonuses to average more than RM30,000, while those in the mid-tier – manufacturing, not-for-profit and accountancy practices – are expecting their bonuses to average around RM20,000. At the lower end of the scale, employees in property and real estate and the public sector are expecting their bonuses to average RM6,500 and RM8,700 respectively.

The bonus potential in 2007 is also highest amongst those aged 51 and over, who are typically expected a bonus of RM37,000, with Financial Directors in the best job for a top bonus of RM39,000.

Figure 14. Annual bonus potential for 2007 by sector

13

Malaysia salary survey Hours of work

Hours of work

The typical working week for a qualified CIMA member in Malaysia is 49 hours, with just under half (45%) working between 41 and 50 hours per week and a further 37% working between 51 and 60 hours per week. However 8% of respondents are working more than 60 hours in a typical week.

The average working week is around 49 hours, with the media, accountancy practices and manufacturing topping the list of typical hours worked in an average week at 51. While the majority of sectors work an average week of between 46 and 50 hours, the only sector to fall significantly outside this range is the public sector where a typical week consists of 43 hours.

Figure 15. Typical hours worked in a week

Figure 16. Number of hours worked by sector

14

Malaysia salary survey Hours of work

The longest hours are worked by:

those aged 51 and over, who on average work a 51 hour weekwith a typical working week of 53+ hours, CEO’s/Managing Directors along with Financial

Controllers work far longer hours than their colleagues in other job rolesthose working in accountancy practices, media and manufacturing all clock up 51 hours in a

typical working weekthose on the lowest salaries of less than RM30,000 who work longer than any other group at 59

hours per weekthose working for larger organisations with a global turnover of more than RM500 million, who

typically work around 50 hours per week

The majority of CIMA members (60%) are working similar hours compared with two years ago, while a further 13% are working fewer hours. However, more than one-quarter of respondents (27%) are working longer hours than they were two years ago. The main reason for working longer hours is due to them taking on more responsibility/more pressure (82%). A change in their role (50%) and company growth (42%) were also major factors impacting on longer hours of work.

••

•

•

•

Figure 17. Work longer than two years ago

Figure 18. Reasons for working longer hours

15

Malaysia salary survey Satisfaction

Satisfaction

Almost three-quarters (73%) of qualified CIMA professionals are satisfied with their current salary and benefits package, of which the majority (54%) are ‘fairly satisfied’ (see Fig 19). Although 22% state that they were ‘not very satisfied’, 5% are ‘not at all satisfied’. Unsurprisingly, those earning over RM100,000 are most satisfied with their current remuneration packages.

Overall, CIMA members in Malaysia are ‘fairly satisfied’ with the current salary and staff benefits they receive from their employers. Despite earning the highest salaries, and being second only to the financial services sector in receiving the highest bonuses, those working in the media sector are least satisfied with their remuneration packages. Those working in accountancy practices were the most satisfied.

Figure 19. Satisfaction with salary and benefits

Figure 20. Satisfaction with salary and benefits by sector

16

Malaysia salary survey Satisfaction

Amongst those most satisfied are:

those aged over 51 who are by far the most satisfied age category Financial Directorsthose working for accountancy practices.

The least satisfied groups are:

those aged between 31 and 35, who earn an average income of RM80,357 Finance and business analyststhose working in the media, not-for-profit and public sectors.

•••

•••