I think 1%-5% increment is pretty normal these days, especially in MNCs.
That's a sad fact that is happening everywhere which is also one of the main reasons why people look out and job hopping so often these days.

I'm not working for this week and taking a break at home. I do check email from time to time, in just 4 days (Mon to today as Tuesday was a PH), I have received 2 resignations from a software developer and tester. Their managers say the new offer they got in their new employers is something we cannot match. Very frustrating but what to do when we are only giving 1%-5% of yearly salary increment. That's also if the company is doing well, if not, 0% increment.

Well, for these two employees that just resigned, I do think their salary is considered not too bad for their age. Early 30s (30-32) and earning 6k+, still single. Too bad we can't do much when it comes to salary.