Data Engineering Salary Guide 2025

Malaysia vs USA vs Singapore vs Hong Kong vs Australia

Data Engineers are the backbone of modern businesses in 2025. They design, build, and maintain the data pipelines that keep analytics and AI systems running smoothly across industries like fintech, e-commerce, healthcare, and logistics. For payroll and HR professionals, understanding salary trends is essential for planning budgets, building competitive offers, and making smart global hiring decisions.

In this guide, we will compare salaries across major markets, explore how experience and specialization impact pay, and highlight why Malaysia is a strategic choice for building cost-effective, high-performing Data Engineering teams.

Data Engineer Salary Breakdown by Country (2025)

Malaysia

Malaysia’s data engineering sector is booming thanks to digital transformation, fintech growth, and cloud adoption. Skills in SQL, Python, Spark, and AWS are especially valued.

Market Insight: Malaysia combines affordability with strong technical expertise in modern data stacks, including cloud data warehouses and real-time processing tools.

Also Read: Why Malaysia Is a Premier Destination for Offshore Cybersecurity Talent in APAC

United States

The U.S. remains the highest-paying market for Data Engineers, especially in Silicon Valley, New York, and Boston.

Market Insight: U.S. engineers often receive stock options, but high living costs reduce net take-home.

Singapore

Singapore’s push toward becoming a smart nation fuels strong demand for data engineers in AI and financial services.

Market Insight: Engineers with cloud certifications and experience in big data frameworks command premium salaries.

Hong Kong

Hong Kong’s finance-driven economy increasingly relies on data engineering for compliance and customer analytics.

Market Insight: Salaries are moderate compared to Singapore, but engineers gain exposure to regulatory-heavy data projects.

Australia

Australia offers strong pay for experienced engineers, especially in Sydney and Melbourne.

Market Insight: Engineers with experience in data governance and multi-cloud environments are in the highest demand.

Also Read: The Ultimate Checklist for Hiring a Cybersecurity Analyst in Malaysia

Data Engineer Salary Table – By Country (2025)

Comparing Data Engineer Salaries Across Countries

Malaysia: High ROI Talent

Data Engineers in Malaysia earn between USD 15,000 and 43,000 annually, which is significantly lower than salaries in Western countries. However, this doesn’t mean a compromise on quality. Malaysia offers a strong pool of English-speaking professionals who are trained in modern data stacks such as SQL, Python, Spark, and cloud platforms like AWS and GCP. For global employers, this creates an attractive mix of cost savings (up to 70% compared to the U.S.) and technical capability. Companies often choose Malaysia to build scalable data engineering teams without overstretching payroll budgets.

United States: Top Salaries with High Costs

In the U.S., Data Engineers remain among the highest-paid globally, with senior engineers earning USD 140,000–150,000+ per year. Compensation packages often include bonuses, stock options, or other benefits. However, high salaries come hand-in-hand with extremely high living costs in major hubs like San Francisco, New York, and Seattle. For employers, this makes it difficult to scale engineering teams domestically. As a result, many U.S. companies retain key strategic roles locally but outsource execution and pipeline management to offshore teams in countries like Malaysia to balance costs.

Singapore: Regional Tech Hub with Competitive Pay

Singapore offers USD 62,000–118,000 annually for Data Engineers, making it one of Asia’s most competitive markets. The city-state’s strong push toward becoming a smart nation has created demand in areas like AI, fintech, and government digital projects. While salaries are attractive for top-tier engineers, this also makes hiring in Singapore expensive for companies building larger teams. A smart hiring strategy is to base leadership or senior strategic roles in Singapore while scaling execution teams in Malaysia, where payroll costs are much lower but skills are equally strong.

Hong Kong: Growing Demand in Finance

Data Engineers in Hong Kong earn USD 38,000–61,000 per year, a moderate level compared to Singapore or the U.S. However, demand is steadily increasing due to the city’s finance-driven economy, compliance-heavy projects, and the logistics sector. Engineers working here gain exposure to highly regulated data environments, which can be valuable experience for both employers and professionals. For global companies, Hong Kong is often used as a specialist hub for financial data engineering, while larger-scale teams are built offshore in Malaysia for cost efficiency.

Also Read: Guide to Hiring Cybersecurity Talent in Malaysia

Australia: Balanced Pay and Lifestyle

In Australia, Data Engineers earn USD 73,000–106,000+ annually, with strong demand in enterprise cloud platforms, government projects, and large-scale data governance initiatives. Salaries are attractive, and Australia also provides a balanced work culture, making it a popular destination for senior-level roles. However, the higher payroll costs mean many companies choose to combine Australian-based leadership with Malaysian execution teams. This hybrid approach allows organizations to keep strategic oversight close to home while reducing overall payroll expenses.

Why These Salaries Differ

When comparing Data Engineer salaries globally, it’s important to remember that pay differences aren’t just about technical skills. A range of external factors, from cost of living to industry specialization, play a big role in shaping compensation. Here’s a closer look at the main drivers:

1. Cost of Living

Salaries in countries like the United States, Singapore, and Australia are inflated by the high cost of living in major cities. Rent, healthcare, and day-to-day expenses are significantly higher compared to Malaysia.

Example:
A senior Data Engineer in San Francisco may earn USD 145,000 annually, but with rent averaging USD 3,500+ per month, much of that income goes toward living costs. In contrast, a mid-level engineer in Kuala Lumpur earning USD 30,000 annually enjoys comparable purchasing power thanks to Malaysia’s lower housing and living expenses.

Tip for Employers:
When hiring globally, consider location-adjusted salaries to keep compensation competitive while managing payroll budgets effectively.

2. Industry Demand

Certain industries value Data Engineers more highly because of the complexity and sensitivity of their data infrastructure.

• Finance: Engineers in banking and insurance often manage compliance-driven data pipelines, fraud detection, and risk modeling, which require advanced technical and domain expertise.
  
• E-commerce & Tech: Online platforms rely on engineers for building scalable pipelines that support product analytics, personalization, and real-time decision-making.
  
• Healthcare: Handling patient data under strict regulations (like HIPAA in the U.S.) means engineers with this specialization can command higher pay.

Example:
A Data Engineer at a global investment bank in Singapore might earn USD 110,000 due to the heavy compliance and data security requirements, compared to a peer in logistics earning USD 80,000.

Tip for Employers:
When hiring for industries with higher compliance or infrastructure needs, focus on engineers with domain-specific experience to reduce ramp-up time.

3. Skill Specialization

The specific skills an engineer brings to the table significantly affect salary. Professionals with expertise in cloud platforms, big data frameworks, or real-time streaming tools often earn 20–30% more than peers with only basic SQL and ETL experience.

High-value skills include:

• Big Data Frameworks: Spark, Hadoop, Kafka
• Cloud Platforms: AWS, GCP, Azure for scalable data engineering
• Automation & Orchestration: Airflow, dbt, Kubernetes
• Programming Languages: Advanced Python, Scala, or Java

Example:
A Data Engineer in Kuala Lumpur skilled in AWS Redshift and Apache Spark might earn MYR 160,000 (USD 34,000), while a peer with only SQL and Excel skills earns closer to MYR 100,000 (USD 21,000).

Tip for Employers:
Use skill-based compensation frameworks to reward engineers with advanced technical expertise. This not only attracts stronger talent but also encourages upskilling and retention.

Also Read: How to Choose between Outsourced vs In-House Cybersecurity

4. Remote Work & Global Hiring

The rise of remote-first hiring has transformed how companies structure payroll. Employers now focus on skills and deliverables, not just location. This shift has positioned Malaysia as a prime destination for offshore engineering teams.

Global Trends:

• Hybrid Teams: Senior leadership roles remain in high-cost markets, while day-to-day engineering execution is outsourced to Malaysia and other cost-effective regions.
  
• Offshore Hiring: Companies gain payroll savings of 60–70% by hiring engineers in Malaysia without sacrificing technical capability.

Example:
A U.K.-based SaaS company hired three Data Engineers in Penang through FastLaneRecruit for the cost of one London-based hire. This provided 24/7 pipeline monitoring, faster project delivery, and reduced payroll costs by 65%.

Tip for Employers:
Partner with an Employer of Record (EOR) to hire globally without worrying about compliance or local labor laws.

Why Outsource Data Engineer Roles to Malaysia?

Outsourcing Data Engineer roles to Malaysia offers a rare combination of affordability, technical expertise, and operational ease. The country has invested heavily in digital transformation, producing a steady pipeline of engineers who are proficient in cloud platforms, data warehousing, and big data tools. On top of that, government initiatives like the Malaysia Digital Economy Blueprint (MyDIGITAL) and training programs from MDEC have raised the quality and job readiness of local talent.

For payroll and HR leaders, this translates into lower hiring costs, less compliance complexity, and immediate access to skilled engineers who are comfortable working in global teams.

Also Read: How to Successfully Outsource a Cloud Engineering Team

Strategic Advantages of Outsourcing to Malaysia

1. Lower Payroll Costs Without Sacrificing Skills

Hiring a Data Engineer in Malaysia can cost 60–70% less compared to the U.S., U.K., or Australia, while still delivering high technical standards. This allows businesses to scale their data functions without blowing up payroll budgets.

Example: A U.S.-based fintech firm hired four mid-level engineers in Kuala Lumpur for the price of two U.S. hires, saving millions annually while keeping delivery speed and quality intact.

2. Skilled Engineers Trained in Cloud & Big Data

Malaysia produces thousands of STEM and computer science graduates every year, many of whom are trained in SQL, Python, Spark, Hadoop, AWS, and GCP. In addition, international certifications from Google, Microsoft, and AWS are common among Malaysian engineers, making them globally competitive.

Example: A Singaporean e-commerce company outsourced data pipeline development to a Malaysian team already certified in AWS and GCP, enabling seamless migration to the cloud without the need for additional training.

3. Time Zone Overlap with APAC & Partial Europe

Malaysia’s GMT+8 time zone makes collaboration easy across Asia-Pacific markets and allows partial overlap with European working hours. This enables real-time communication, faster project turnarounds, and smoother integration with global workflows.

Example: A German manufacturing company set up a data engineering support team in Penang. With overlapping working hours, they were able to resolve ETL pipeline issues overnight and deliver analytics updates by the next European business day.

4. Strong English Proficiency and Global Collaboration

English is widely spoken among Malaysian professionals, especially in the tech sector. Engineers are also accustomed to working with global clients and collaborating via tools like Slack, Jira, Zoom, and GitHub. This ensures minimal communication barriers and faster onboarding into distributed teams.

Example: A Hong Kong-based bank outsourced compliance-driven data engineering tasks to Malaysian engineers. Their English fluency and prior experience with global finance clients allowed them to integrate seamlessly into cross-border teams.

5. Simplified Payroll & Compliance with EOR

Hiring in a new country often means navigating unfamiliar labor laws, taxes, and employee benefits. In Malaysia, an Employer of Record (EOR) service makes this process easy by handling:

• Compliant employment contracts
• Payroll execution and reporting
• Statutory contributions like EPF (Employees Provident Fund), SOCSO, and EIS
• Monthly income tax deductions (PCB)

Example: A Canadian SaaS company used FastLaneRecruit’s EOR service to hire three senior engineers in Malaysia. Contracts, payroll, and statutory filings were all managed locally, ensuring compliance without the need to set up a subsidiary.

Use Case: Scaling Engineering Teams Cost-Effectively

A U.K.-based SaaS company needed to expand its data engineering capacity to support a major cloud migration. Instead of hiring locally at premium costs, they partnered with FastLaneRecruit to build a five-person Data Engineering team in Malaysia.

• Outcome 1: Payroll costs reduced by 65% compared to hiring in London
• Outcome 2: Compliance fully managed through EPF, SOCSO, and tax filings
• Outcome 3: Cloud migration completed ahead of schedule thanks to round-the-clock support

This hybrid model gave the company the ability to scale quickly, stay compliant, and deliver high-quality engineering projects, all while optimizing payroll budgets.

Also Read: Cybersecurity Analyst Salaries in 2025

How to Hire Data Engineers in Malaysia

Hiring Data Engineers in Malaysia is straightforward once you understand the local talent market, salary expectations, and compliance requirements. Whether you’re building a remote-first data engineering team or expanding regional operations, following a structured approach ensures you get the right talent while staying compliant.

1. Define Role Requirements

Before you start hiring, it’s important to clearly outline what you need. This prevents mismatched expectations and helps you attract the right candidates.

Key considerations:

• Seniority Level
  
  • Entry-level (0–2 years): Great for ETL development, data cleaning, and dashboard maintenance.
    
  • Mid-level (3–5 years): Suitable for pipeline optimization, cloud integration, and collaboration with business stakeholders.
    
  • Senior (6+ years): Best for designing large-scale architectures, leading data migration projects, and mentoring junior engineers.
    
• Tech Stack
  Skills to look for include:
  
  • SQL & Python for data manipulation
  • Apache Spark, Kafka, or Hadoop for big data pipelines
  • AWS, Azure, or GCP for cloud data platforms
  • Airflow or dbt for workflow orchestration
  • Data warehousing experience (Snowflake, BigQuery, Redshift)
    
• Business Objectives
  Define how the engineer’s role contributes to your goals. For example:
  
  • Supporting product analytics for a SaaS business
  • Ensuring data compliance for a financial institution
  • Migrating to cloud-based data infrastructure

Example:
A Singaporean fintech firm hired two mid-level engineers in Malaysia to build secure ETL pipelines for financial data compliance. By defining the role clearly, they reduced onboarding time and avoided costly mis-hires.

2. Choose a Hiring Model

Malaysia offers different hiring models depending on whether you already have a local entity or want to move quickly without setting one up.

FastLaneRecruit’s EOR Solution

For companies without a Malaysian presence, FastLaneRecruit’s Employer of Record (EOR) service is the fastest and most compliant way to hire Data Engineers.

What FastLaneRecruit covers:

• Drafting and managing compliant employment contracts
• Monthly payroll management, including EPF, SOCSO, and EIS
• Income tax (PCB) deductions and filings
• Compliance with Malaysian labor laws and statutory benefits
• Onboarding support and local HR guidance

Benefits for employers:

• Hire in days, not months
• Full compliance with zero misclassification risk
• Transparent payroll reporting and costs
• Seamless integration with global HR systems

Example:
A Singapore-based SaaS company used FastLaneRecruit’s EOR to hire three engineers in Penang. Within two weeks, contracts were signed, payroll was active, and the team was fully operational, without the company having to register a Malaysian subsidiary.

3. Set Competitive Salary Benchmarks

Salaries for Data Engineers in Malaysia vary by location, seniority, and specialization. Engineers in Kuala Lumpur and Penang often command higher pay due to demand from multinationals and tech startups.

Tips:

• Benchmark against local hubs: Kuala Lumpur, Penang, Johor Bahru
• Adjust compensation for in-demand skills like Spark, Kafka, or AWS certifications
• Offer training stipends or performance bonuses to stand out in a competitive market

Example:
A U.S.-based healthcare analytics company set salaries at the upper mid-level range and included AWS certification support. This helped them attract top-tier candidates and reduce turnover.

4. Ensure Payroll Compliance

Malaysia has clear labor and tax laws that employers must follow. Non-compliance can lead to fines, reputational risks, or employee dissatisfaction.

Key statutory requirements:

• EPF (Employees Provident Fund): Retirement savings contribution
• SOCSO (Social Security): Workplace injury and disability coverage
• EIS (Employment Insurance System): Job loss protection
• PCB (Potongan Cukai Bulanan): Monthly income tax deduction

How FastLaneRecruit helps:

• Automates payroll and statutory contributions
• Provides monthly reports and audit-ready documentation
• Keeps you updated on labor law changes and compliance risks

Example:
A Canadian AI company hiring in Malaysia through FastLaneRecruit avoided compliance risks and had payroll automation from day one, ensuring smooth onboarding and peace of mind.

Conclusion

Data Engineers are vital for scaling digital businesses in 2025. With global demand rising, Malaysia stands out as a cost-effective and high-quality talent hub. Whether you’re building your first offshore team or expanding existing operations, FastLaneRecruit makes hiring simple, compliant, and scalable.

Ready to Build a Smarter Data Engineering Team?

Building and scaling a Data Engineering team doesn’t have to be slow, costly, or complicated. With Malaysia’s growing pool of cloud-savvy, English-speaking engineers, global companies can expand their data capabilities while keeping payroll lean and compliant.

By partnering with FastLaneRecruit, you gain instant access to:

• Skilled Malaysian engineers trained in SQL, Python, Spark, AWS, and GCP
• Cost savings of up to 70% compared to hiring in the U.S. or Europe
• Seamless compliance, with payroll, EPF, SOCSO, EIS, and tax filings fully managed
• Faster hiring timelines, so your team is up and running in days, not months
• Transparent payroll reporting that integrates with your global HR systems

Whether you’re a startup scaling quickly, an enterprise optimizing payroll budgets, or a tech firm expanding into APAC, FastLaneRecruit simplifies the entire process of hiring offshore Data Engineers. 

With the right partner, you don’t just build a team, you build a smarter, scalable, and future-ready data engineering function. 

Let’s make global hiring simple, compliant, and cost-effective.
Reach out to FastLaneRecruit today and start building your offshore Data Engineering team with confidence.