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Expatriate pay packages drop further in Malaysia

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According to the latest annual MyExpatriate Market Pay survey by ECA International, Malaysia saw a drop of USD$17,188 to the average expatriate pay package – keeping them rooted to the bottom of the 40-country list.

“The average cost of employing an expatriate at a middle manager level is now $150,868 – less than half of what it would cost to send an expatriate to Japan. As Malaysia has much cheaper accommodation costs than its Asian neighbours and relatively low levels of tax, the country sits at the bottom of the rankings as the least expensive city included in the rankings,” said Lee Quane, regional director – Asia, ECA International.

The press released highlighted three main elements that companies need to factor when they’re considering the cost of an expatriate package – the cash salary, benefits – such as accommodation, international schools, utilities or cars – and tax.

In comparison, Singapore saw one of the most dramatic falls in the average cost of employing an expatriate – shrinking by over $12,000 compared to the year before. The value of a typical annual compensation and benefits package for an expatriate middle manager in Singapore now is $223,095, down from $235,545 in 2016.

Quane commented: “This is due to lower salaries being provided as well as a fall in the costs of various benefits,”

“However, Singapore remains one of the 20 most expensive countries in terms of the cost of employing expatriate staff, despite having very low personal tax rates,” he added.

Meanwhile, expatriate pay packages in Hong Kong rose in 2017 – after previously hitting a five-year low in 2016. The value of a typical expatriate pay package in Hong Kong is now $268,514, having slightly risen by $3,027.

Elsewhere in Asia, the top ten expatriate pay packages 2017 in APAC (USD) are from:

  1. Japan: 356,224
  2. India: 293,097
  3. China: 276,387
  4. Hong Kong: 268,514
  5. Australia: 253,737
  6. Korea Republic: 244,598
  7. Philippines: 233,932
  8. Taiwan: 228,445
  9. Indonesia: 225,893
  10. Bangladesh: 224,835

Photo / ECA International

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