Singapore - Salaries in the Asia-Pacific region are forecast to jump next year as a result of rising inflation, a compensation firm's report said Tuesday.

Pay is expected to increase by a median 8 per cent in 2009 against a median increase of 6.7 per cent in 2008, according to HR Business Solutions.

Pay hikes among more developed countries including Taiwan, Japan, Australia, New Zealand and Singapore are forecast at between 3.5-5.9 per cent, the firm said.

Sri Lanka tops the projected increases at 17 per cent, followed by India at 16 per cent, Indonesia at 12.7 per cent, Vietnam at 12.4 per cent, Bangladesh at 11.9 per cent and Pakistan at 11.1 per cent.

China emerges seventh with a projected salary hike of 11 per cent, trailed by Cambodia at 9.8 per cent, the Philippines at 9 per cent, South Korea at 8 per cent, Thailand at 7.5 per cent and Malaysia at 7 per cent.

"While economic growth rates in Asia are mostly forecasted to be moderately lower in 2008 relative to 2007, (the) inflation rate across the Asia-Pacific region has soared to an all-time high," HR Business Solutions said in its report.

The labour market continues to be tight in China, India and Vietnam, particularly for qualified staff, it said.

With the biggest salary leap expected in Sri Lanka, the report said that companies are hiring. As in other emerging countries, "recruiting and retaining skilled human capital is challenging," the report said. (dpa)