A recent video by Universiti Malaysia Pahang Al-Sultan Abdullah (UMPSA) is sparking conversation as it highlights salary expectations among university graduates.
According to Sinar Harian, in the 1-minute, 43-second clip, 16 graduates, comprising nine men and seven women, share their thoughts on what they believe would be a fair starting salary range—between RM3,000 and RM5,000.
RM3000 to RM5000 starting salary
One graduate in the video expressed the sentiment: “Estimated salary after graduation should be around RM3,000 to RM5,000.”
This view aligns with the general consensus among the graduates, who feel that Malaysia’s industries should match these figures to support fresh graduates entering the workforce.
However, while many netizens understand these expectations, they also recognize the reality often falls short.
Expectation too high?
Experienced professionals shared their own stories, revealing that entry-level positions frequently start at just RM1,700.
According to a 2024 study by Khazanah Research Institute (KRI), around two-thirds of new graduates remain caught in low-wage brackets, with initial salaries under RM2,000 despite holding higher education qualifications.
The study, titled Shifting Tides: Charting Career Progression of Malaysia’s Skilled Talents, also underscores stagnant wage growth in Malaysia over the past decade.
“In 2021, 65.5 percent of graduates earned starting salaries below RM2,000,” the report states.
Reservation Wage
Further findings on KRI’s official portal reveal that young adults’ salaries often fall below what is known as the ‘reservation wage’—the minimum wage an individual is willing to accept for a job.
For young workers, this reservation wage stands at RM1,555 per month, while active job seekers target RM1,715.
KRI’s report, The Misconception of Youth Demanding High Salaries, clarifies: “In reality, the salaries requested by young people and job seekers are already relatively low.”
As graduates continue to voice their aspirations for a sustainable starting wage, the debate on wage standards for fresh entrants into the Malaysian workforce remains ongoing.
