Low starting salaries for Malaysian graduates spark concerns

Employment surveys cast gloomy outlook for Malaysia’s fresh graduates, with nearly two-thirds of degree holders earning less than $700 Malaysian ringgit

KUALA LUMPUR, Malaysia (MNTV) – A staggering 65% of Malaysian graduates are earning less than 3,000 Malaysian ringgit ($700) per month, sparking concerns about the sustainability of the country’s workforce and the future of its youth, reports Channel News Asia (CNA). 

Andy Yap, a 23-year-old computer science graduate, told CNA that he was often told by hiring managers that his expected starting salary of $700 was “too much”. 

Yap eventually landed a software engineer role with a starting pay of 4,000 Malaysian ringgit a month. However, his experience is not typical.

“I would say that I feel grateful, especially after searching for so long and spending so much effort,” Yap said. “But I know that many of my friends are still struggling to find employment, and those who are employed are often underpaid.” 

Howard Ng, a 23-year-old executive, told CNA that his monthly salary of about 3,000 Malaysian ringgit is “barely enough” to cover his expenses. Ng, who graduated from the University of Reading Malaysia, said that he often has to stretch his budget and run a deficit just to get by.

“A third of my salary goes to paying rent, the rest pays for daily necessities, especially food,” Ng said. “Thankfully, I am not currently paying off student loans.”

Experts say that the low starting salaries are a result of a deep structural crisis between higher education and employment. Mohd Yusof Saari, a former chief labour market economist, told the New Straits Times that tertiary education is no longer a guarantee of high wages.

“We are seeing a surge of degree holders entering the job market, but the reality is that many high-skilled roles are already saturated,” said Diana Khairuddin, an HR consultant. “This creates an intensely competitive market that drives down starting salaries and weakens young professionals’ bargaining power.”

To address the issue, experts say that there needs to be a systemic and coordinated approach involving labour policies, education reforms, and economic shifts.

“We need to shape work-ready graduates through strong public-private partnerships,” said Arulkumar Singaraveloo, CEO of the Malaysia HR Forum. “This includes providing students with relevant industry exposure, skills training, and mentorship opportunities.”

The government is working to create more high-paying, skilled jobs and to improve the quality of Malaysia’s graduates. However, experts say that more needs to be done to address the root causes of the issue.

As one graduate told CNA, “I feel grateful to have a job, but I know that many of my friends are still struggling to find employment. We need to do more to support our graduates and to create a more sustainable future for them.”