Many Malaysian graduates are earning just enough to survive, says report
Future Studies Berhad said its survey showed 70% of employed graduates are in semi- and low-skilled roles, and more than 65% of degree holders earn below RM3,000 monthly. (Bernama pic)
PETALING JAYA : Many Malaysian graduates are earning just enough to survive, with little to spare for saving or upward mobility, according to a new report by a labour market research group.
Future Studies Berhad said the study also dispelled the notion that tertiary education guaranteed a meaningful wage premium.
The report, titled 'The 'Gaji Cukup Makan' Economy: When Higher Education Becomes an Economic Risk', also finds the idea that tertiary education guarantees a better life is being increasingly challenged.
Future Studies said based on its report, the high employability rates – often exceeding over 80% – were misleading as it included all forms of employment, regardless of skill match or wage level.
'In reality, over 70% of employed graduates are in semi- and low-skilled roles, and more than 65% of degree holders earn below RM3,000 monthly,' the report read.
It said its findings highlighted a serious mismatch between qualifications and job roles, and a clear erosion in the returns on higher education investment.
'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.'
Future Studies said the decision to pursue higher education becomes increasingly risky, especially for low- and middle-income households who are burdened by rising education costs but see limited wage rewards.
The report also pointed to several root causes behind the slow wage growth, ineffective pre-employment and weak skilled demand from the private sector, which it labelled as a 'crisis'.
'These factors create a compressed and delayed wage trajectory, where graduates struggle to earn more than non-graduates, especially early in their careers.'
To address the problem, the report calls for major reforms in education and employment policies, including a shift away from misleading graduate employability figures and restructuring of internships to bridge the education-employment gap
Other recommendations include pushing for industrial upgrading or job redesign and introducing advisory wage guidelines to address wage compression.
It also proposes bold reforms and a 'holistic policy ecosystem' that aligns education planning, labour market demand and wage outcomes into a cohesive outcome-based national strategy.
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