RM2,500 starting pay makes little difference for graduates, say economists
Economists argue that the government's proposed RM2,500 minimum starting salary for graduates will have a negligible impact as many employers already pay within that range. Experts warn that the policy could inadvertently reduce graduate employability if companies choose to cut costs.
Why it matters
The debate highlights the tension between government efforts to improve living standards and the realities of market-driven wage structures.
For young graduates just entering the job market, a proposal to fix the minimum salary at RM2,500 will do little for them, given that most companies already pay that amount. (File pic)
PETALING JAYA: A minimum starting salary of RM2,500 for graduates will do little to raise wages even as it seeks to address a longstanding structural weakness in Malaysia’s labour market, economists say.
Geoffrey Williams of Williams Business Consultancy Sdn Bhd pointed out that graduates already earn between RM2,500 and RM3,500 a month, while Yeah Kim Leng of Sunway University said the proposed rate was “reasonable as a legal floor” but still fell short of a living wage in major cities.
On the other hand, Barjoyai Bardai of the Malaysia University of Science and Technology said the proposal was pertinent given that academic qualifications and skills did not always translate into adequate remuneration.
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