A recent study has uncovered the financial challenges that many Malaysian graduates face upon completing their studies.
This includes earning meagre salaries and being forced to work at semi-skilled or unskilled sectors in order to make ends meet, reported NST and FMT.
Over 60% of M’sian grads earn less than RM3k monthly
According to the study titled “The ‘Gaji Cukup Makan’ Economy: When Higher Education Becomes an Economic Risk” by Future Studies Berhad, it found that more than 65% of degree holders earn less than RM3,000 a month.
This is only enough to pay for basic necessities, leaving them with little to none to save, invest, or move up the socioeconomic ladder.
Additionally, over 70% of employed graduates were found to be working in semi- and low-skilled roles.
The study’s author, Dr Mohd Yusof Saari, wrote the study had uncovered “a deep structural crisis” between higher education and employment, where holding a degree can no longer be seen as a guarantee in earning wages that match qualifications and skill levels.
This reveals the true state of graduate employability, which is often reported to be above 80%. But the report highlights that these figures can be misleading, as they include all forms of employment without accounting for skill mismatches or wage levels.
“The mismatch in Malaysia leads to deeper economic vulnerability, limiting upward mobility and reducing the incentive to pursue higher education, particularly among lower-income groups,” he said.
Pursuing higher education seen as ‘risky’
Dr Mohd also added that continuing one’s studies has grown increasingly risky from an economic standpoint among youths who grapple with rising education costs but are left to survive on limited wage rewards.
“The report identifies several key causes of this crisis, including sluggish wage growth, weaknesses in pre-employment preparation, and low demand for skilled labour from the private sector.
“These factors have resulted in a stagnant wage trajectory, where the income gap between graduates and non-graduates is minimal – especially during the early stages of their careers,” he explained.
Necessary reforms needed
In order to address these issues, Dr Mohd called for sweeping reforms to be done in education and employment policies in the following ways:
- Replace misleading employability indicators with measures that reflect actual skill matching
- Develop a long-term graduate outcome tracking system
- Restructure industrial training and pre-employment pathways
- Modernise industries
- Redesign jobs to address deeply rooted structural issues
- Introduce wage guidelines as an advisory tool to address wage suppression
What do you think of this study’s findings? Share with us in the comments!
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