It is heartening that Malaysia currently adopts a national minimum wage policy of RM1,700 monthly. Last year, it has also introduced a progressive wage policy, although that is not compulsory for employers. At the tabling of the 13th Malaysia Plan in Dewan Rakyat on 31st July, 2025, YAB Prime Minister Datuk Seri Anwar Ibrahim said the move would include technical and vocational education and training graduates under Malaysia Standard Classification of Occupations (MASCO), a national benchmark for the classification of jobs in the employment structure developed by the Ministry of Human Resources. (jtksm.mohr.gov.my)
These wage initiatives aimed to address the long-standing issues of income disparity, underemployment, and wage stagnation in the current landscape of Malaysia's labor market. To support the policy's expansion, efforts will be made to strengthen the role of National Wages Consultative Council (NWCC), a tripartite body that has the authority to advise the Government on all issues related to minimum wage and better response in its wage monitoring tool. (minimumwages.mohr.gov.my)
A Member of NWCC, Professor Emeritus Tan Sri Anuwar Ali, a known economist and former Vice Chancellor of several public and private universities at an intellectual discourse organized by Faculty of Economics & Management at the National University of Malaysia (UKM), in support of the Government initiatives added, “In Malaysia, fresh graduates can generally expect a starting salary between RM2,500 and RM3,500 per month, though this can vary based on field of study & specific job. Graduate employability for last year stood at 92.5 per cent, reflecting that vast majority of graduates are employed.”
Tan Sri clarified, “While concerns over low starting salaries for graduates are valid and deserve attention, it is important to frame the conversation around comprehensive data rather than isolated anecdotal accounts. Contrary to claims that most degree holders earn below RM3,000, Department of Statistics Malaysia (DOSM) reports a median salary of RM4,409 and a mean salary of RM4,933 for graduates. It is not an oversupply of graduates but mismatch.”
Tan Sri Anuwar echo the call by Prime Minister to encourage “Large companies to voluntarily adopt decent living wage practices, a move that has already been implemented across government-linked companies and government-linked investment companies, where the wage was set at RM3,100 per month.”
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