A recent study by the Malaysia Labour Market Insight Series revealed that a majority of Bachelor’s degree holders in Malaysia are earning under RM3,000 monthly, leaving little room for them to save, invest or upgrade their social mobility.
Specifically, the study, called “The ‘Gaji Cukup Makan’ Economy: When Higher Education Becomes an Economic Risk”, found that over 65% of degree holders in the country earn ‘gaji cukup makan’, roughly translated as ‘just barely enough pay’, of under RM3,000 per month.
Over 65% of degree holders in Malaysia earn below RM3,000/month, and more than 70% of graduates work in unskilled and semi-skilled sectors
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As reported by Berita Harian, the study also found that over 70% of graduates in Malaysia have to work in unskilled and semi-skilled sectors.
According to the study author, Dr Mohd Yusof Saari, the report exposed Malaysia’s graduate employment model as facing a deep structural crisis where higher education no longer guarantees a meaningful wage.
Dr Mohd Yusof added that the study refuted the common reports of graduates in Malaysia having an employability of over 80% as misleading because the number encompasses all forms of employment, without taking into consideration the matching of skills or wages.
He further revealed that the widespread mismatch of academic qualifications with employment reflects a serious decline in the return on investment of higher education.
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Dr Mohd Yusof elaborated that while the same issue also happens in developed countries, the situation in Malaysia is worse due to low salary levels.
He asserted,
“This leaves no room for protection for those involved in jobs below their academic qualifications. This mismatch has a deeper economic impact in Malaysia, limiting social mobility and reducing interest in pursuing higher education, especially among the low and middle-income groups,”
Factors contributing to the crisis
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As for the causes of this crisis, the report pointed to slow wage growth, weaknesses in pre-employment preparations and weak demand for skills from the private sector.
Dr Mohd Yusof said that the above factors created a flat and stagnant wage trajectory, where graduates fail to differentiate themselves in terms of earning compared to non-graduates, especially in the early stages of their careers.
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So, what do you guys think of the study’s findings? Share your thoughts with us in the comments.
