Economy Japan tech workers now cheaper than Malaysia’s

[thomas]

Salaries for key technology roles in Malaysia have surpassed those in Japan for the first time, driven by investment in its growing semiconductor industry and stronger competition in digital sectors. At the senior level, top annual pay for chief technology officers in Malaysia reached ¥28 million ($176,000), up 27% from a year earlier. In Japan, the figure was ¥26 million, unchanged from the previous year. Grant Torrens, managing director of Hays Specialist Recruitment Japan, said salaries in Malaysia have increased sharply in recent years.

In contrast, Japan lagged its regional peers, reflecting relatively slow salary growth despite recent wage momentum. According to the Hays report, 56% of Japanese professionals reported dissatisfaction with their pay -- the highest in the region -- while 65% said they were considering a career move -- also the highest in Asia -- with limited career progression cited as the main driver. Hays attributed this to Japan's structural characteristics, including its large domestic market and relatively limited exposure to global competition, which allow companies to focus inward and reduce pressure to match international pay levels. Firms also continue to prioritise capital spending over investment in human capital. Torrens added that Japan's seniority-based system remains a constraint on merit-driven compensation and urged companies to shift more "decisively" toward performance-based evaluation. "As skills become scarcer, especially at the senior level, companies need systems that genuinely differentiate performance and impact, not just tenure," he said.

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Japan's key tech workers are now cheaper than Malaysia's

Report shows Malaysian chip and data center boom has lifted salaries past Japanese counterparts

asia.nikkei.com