PETALING JAYA: Many Malaysians with higher education qualifications say their wages fall short of expectations, with salaries lagging behind industry norms and the cost of living.
The average salary for degree holders varies depending on factors such as industry, job role and experience.
According to global job platform Indeed, new graduates in Selangor earn an average of RM2,783 per month.
Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman told theSun that while graduates often expect their academic credentials to translate into higher pay, most degree holders still start out earning below RM3,000 a month.
In its 2024 salary survey, MEF found that degree holders earn an average basic salary of RM2,703, with gross income averaging RM2,971.
However, these figures do not always reflect the true state of the job market.
“We acknowledge growing concern that graduates, particularly in oversupplied fields such as arts, social sciences and general business, are increasingly underpaid and undervalued, especially in industries such as retail, hospitality and traditional manufacturing,” said Syed Hussain.
According to MEF, a mix of structural and market-driven factors explains why some companies offer salaries below the national average for degree holders.
Syed Hussain said while graduates may hope for higher wages due to their qualifications, many employers, especially MSMEs, face financial constraints that limit what they can offer.
“Some companies, especially in low-margin sectors, simply cannot afford to pay more without jeopardising their operations.
“In an oversaturated job market, employers often have the upper hand in setting lower salary offers due to the abundance of job seekers.”
He added that relevant work experience, education and industry exposure remain the most effective route to long-term career success and income growth.
While formal qualifications could open doors, hands-on experience often plays a bigger role in driving salary progression.
“In contrast, sectors such as healthcare, finance and engineering still require formal certifications, so higher qualifications typically lead to better pay.
“However, in tech and startup environments, MEF has observed that skills often outweigh academic background, with some self-taught professionals earning more than degree holders.”
Syed Hussain acknowledged public frustration over wages falling behind the cost of living but urged caution over blanket salary hikes.
He said wage increases must be tied to productivity growth rather than inflation alone, warning that indiscriminate adjustments could harm businesses, especially MSMEs, which make up 98% of Malaysia’s registered firms.
“MEF advocates a combination of performance-based pay, upskilling and stronger government support through targeted subsidies and tax incentives to reduce financial pressure on employers and workers.
“Setting a mandatory wage floor for graduates could distort the labour market and deter job creation in the private sector, potentially leading to automation, outsourcing or hiring freezes, which would worsen youth unemployment, currently at 10.1%.”
He urged a shift in mindset, focusing on performance, skill relevance and business value instead of relying solely on academic credentials.
He said salaries are typically determined by industry benchmarks, company budgets and regional norms, although these factors may not align with an individual’s self-perception.
“Even highly qualified employees may be paid within a fixed salary range if that is what the role commands.”
MEF advised graduates to develop industry-relevant skills and shift towards high-demand sectors offering better pay and long-term career stability.
