Indonesia, Malaysia and Thailand announced wage increases for 2025 between October and November this year, while Vietnam and the Philippines announced their increases earlier in July. As such, Venkateswaran expects the next round of potential negotiations for the latter two counties to arrive only next year.
Minimum wages in Malaysia, Indonesia, Vietnam, Thailand and the Philippines are set to rise in the coming year, broadly supporting consumption spending, according to OCBC senior Asean economist Lavanya Venkateswaran.
“Although policymakers in the region have been largely pragmatic regarding minimum wage hikes, recent trends have turned more mixed,” writes Venkateswaran in her Dec 12 report. “The region remains primed for further foreign direct investment (FDI) inflows and, as minimum wages rise, competitiveness considerations will become increasingly pertinent.”
