KUALA LUMPUR, May 28 — Malaysia is the most cost-efficient location for companies dependent on expatriate workers after the average pay package for the group fell by US$17,188 (RM64,000) last year, according to a global survey.
Global mobility solutions provider ECA International’s MyExpatriate Market Pay survey also found a similar decline in Singapore, where remuneration for expatriate workers dipped US$12,000 from 2016’s average of US$235,545.
“Malaysia saw one of the most dramatic falls in average expatriate pay package compared to the previous year, keeping them rooted to the bottom of the 40-country list.
“The value of a typical annual compensation and benefits package for an expatriate middle manager in Malaysia shrunk by US$17,188, and is now US$150,868, less than half of what it would cost to send an expatriate to Japan,” the firm said in a statement.
ECA’s Asia regional director Lee Quane said Malaysia benefited from cheaper housing costs than neighbours while tax rates were also comparatively lower, allowing it to remain the least expensive country for expatriates, offsetting the decline in mean pay levels.
Globally, the most expensive country to deploy expatriates is Japan, where the average pay package came in at US$356,224, followed by the UK where the same class of workers could earn US$344,508.
India was third in the world and second in Asia-Pacific as expatriates earned on average of US$293,097 annually.
The survey examines pay levels for expatriates globally including information on benefits, allowances, salary calculation methods and tax treatment.
Over 290 companies covering 160 countries participated in the poll.
