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Free Malaysia Today
3 days ago
- Business
- Free Malaysia Today
Master's degree does not guarantee higher pay, says SME group
A mismatch in the labour market has forced many master's degree holders to accept jobs that require lower qualifications and, along with it, lower salaries. (Freepik pic) PETALING JAYA : The perception that master's degree holders are earning less than expected given their qualifications only holds true in certain cases, says SME Association Malaysia president Chin Chee Seong. He said the problem stems from a mismatch in the labour market in Malaysia. 'There are limited roles that specifically require postgraduate qualifications, forcing many to accept lower-paying jobs typically held by degree holders,' he told FMT. Sharing his view is Malaysian Employers Federation (MEF) president Syed Hussain Syed Husman, who pointed out that the relevance of some postgraduate qualifications is limited. Chin Chee Seong. Chin said the Malaysian job market has yet to reach a stage where there is a need for more of those with a master's degree. 'Employers are not averse to paying higher salaries. The question is whether or not it is necessary or justified,' he pointed out. Chin said the association has been urging the government to invest in tech-based industries and to push more small and medium enterprises (SMEs) to adopt advanced technology. He said that when industries embrace digitalisation, the need for specific technical skills that come only with postgraduate qualifications rises, making employers more willing to offer higher salaries. He noted that SMEs in some sectors, such as IT services, already offer 'relatively high' starting pay, with fresh graduates earning RM4,000 to RM4,500, depending on the role. Those with a master's degree in fields like computer science are more likely to earn higher wages, Chin said. However, postgraduates in areas like human resources or administration may not see the same returns, as these roles only require degree holders. A recent report by Permodalan Nasional Bhd (PNB) Research Institute said master's degree holders have seen a 10% decline in real wages in the decade leading up to 2022, compared with just a 4% drop in the previous corresponding decade. In contrast, degree holders saw a slight improvement in wage growth over the same period. Syed Hussain Syed Husman. Syed Hussein said factors such as underemployment and an oversupply of graduates have also contributed to wage stagnation. 'Without a corresponding increase in productivity and business performance, employers are unlikely to raise wages simply because an employee holds a higher academic qualification,' he told FMT. Syed Hussain said postgraduate degrees still offer value in specialised fields such as data science and engineering, but unless qualifications align with evolving industry needs, wage challenges for master's graduates will persist. He called for closer collaboration between academia and industry to ensure postgraduate programmes are aligned with market needs. The rate of skills-related underemployment stood at 37% in the second quarter of 2024, deputy economy minister Hanifah Hajar Taib said last year. He added that youth unemployment also stood at 10.6% for the fourth consecutive month in February, involving 306,600 people, which some attributed to a skills mismatch.
New Straits Times
6 days ago
- Business
- New Straits Times
MEF: Education-industry mismatch leaves graduates ill-prepared for modern workplace
KUALA LUMPUR: Malaysia's education system is churning out graduates who are ill-prepared for the demands of the modern workplace, the Malaysian Employers Federation (MEF) has warned. Its president, Datuk Syed Hussain Syed Husman, said many graduates emerged with academic credentials that do not sufficiently prepare them for the practical demands of today's job market. "MEF has expressed concern over the persistent issue of job mismatch in the labour market. The current education system produces graduates who are not aligned with industry requirements. "Many of them have academic backgrounds that are too theoretical and do not match the skills needed by employers, particularly in fast-evolving sectors such as technology, green energy and advanced manufacturing," he told the "New Straits Times". He said the system was not aligned with industry demands, leading to many young Malaysians entering the workforce without the capabilities needed to thrive. According to the recently released Gaji Cukup Makan economic report, 70 per cent of graduates are employed in semi- and low-skilled jobs, while only 30 per cent secure high-skilled roles. Syed Hussain said the country continued to produce an oversupply of graduates in fields, such as business studies and social sciences, while there was a persistent shortage in critical areas like engineering, data science, skilled trades and technical or vocational disciplines. "Underemployment — where graduates work in roles below their qualifications — reflects inefficiencies in the labour market. It also devalues higher education and contributes to low wage growth and job dissatisfaction," he said. To address this, MEF is urging institutions of higher learning to align academic programmes with real-world workplace skills, particularly in areas such as digital literacy, communication and problem-solving. He called for stronger partnerships between industry and academia to ensure courses better reflect current market demands. "We have long advocated for enhancing Technical and Vocational Education and Training (TVET). "It should be seen as a first-choice pathway, rather than a last resort. "Employers should also be incentivised to offer TVET-related internships and apprenticeships to connect training with employment directly," he said. Syed Hussain said MEF proposed expanding public-private training schemes, including micro-credentials and short-term certification programmes, to help unemployed or underemployed graduates upskill themselves and transition into high-demand roles. On the role of employers, Syed Hussain said the private sector must take proactive steps to bridge the skills gap and absorb more graduates into high-skilled roles. This includes offering structured on-the-job training and mentorship programmes and collaborating with government bodies, such as the Human Resource Development Corp, to design targeted upskilling initiatives. "Employers should co-develop curricula with universities and polytechnics, as well as offer meaningful internships and adopt skills-based recruitment practices that focus on competencies rather than just academic qualifications," he said. He added that MEF supported the use of artificial intelligence-powered job-matching platforms that align graduates' skills with high-skilled roles and provide clear career pathways within companies to help young employees understand their prospects for growth. Syed Hussain called on the government to expand incentives for companies that hire graduates in fields aligned with their training. "Financial incentives, such as tax breaks, subsidies and grants, will encourage businesses to hire graduates in their specialised fields. "This will reduce graduate underemployment while boosting innovation and national competitiveness," he said. He added that such measures would improve job satisfaction, wage growth and career development for youth, helping to build a stronger and more resilient workforce.
The Star
21-05-2025
- Business
- The Star
MEF urges careful rollout of WFH during Asean Summit
PUTRAJAYA: The Malaysian Employers Federation (MEF) agrees with the government's move to allow employees in the public sector to work from home (WFH) during the 46th Asean Summit but suggests that the implementation be thoroughly considered. MEF president Datuk Dr Syed Hussain Syed Husman said the measure is important to ensure that WFH does not negatively affect business productivity, especially for companies operating in areas involved in the high-profile event. "MEF believes WFH can help ease traffic congestion during the event, but its implementation must be carefully planned. ALSO READ: 46th Asean Summit: Road closures and diversions in Klang Valley announced "Cooperation between the government, employers, employees or unions is essential to ensure a balanced and effective approach," he said on Wednesday (May 21). "Before WFH is implemented, it is crucial to hold engagement sessions with stakeholders, particularly private businesses and local authorities, to ensure the initiative does not adversely affect productivity for those impacted during the summit." Syed Hussain said, however, the WFH implementation in the private sector could face challenges as not all employers have efficient, flexible work management systems. "If businesses cannot operate physically, small and medium enterprises such as restaurants, transportation and nearby services may suffer losses. "Therefore, WFH implementation must align with each company's capacity and needs, including in terms of technology, data security and employee performance monitoring,' he said. ALSO READ: Civil servants apply for WFH during Asean Summit He also said the government's move to allow WFH during the summit reflects a prudent approach, showing that the government continues to function normally while temporarily adjusting to support the success of the international event. "If implemented well, this WFH initiative could serve as a stepping stone for a broader hybrid work policy in the public sector. "It aligns with global trends that recognise work-life balance and the use of technology to improve public service efficiency,' he said. On May 7, the Public Service Department (PSD) announced that civil servants expected to be affected by traffic congestion during the summit, which begins with senior officials' meetings on Friday (May 23), are encouraged to apply for WFH. PSD said in line with the government's commitment to strengthening public service continuity and the well-being of the people, WFH implementation for civil servants would continue to be carried out flexibly and subject to current regulations. ALSO READ: Asean Summit: 71 schools in S'gor, KL allowed to carry out online learning from May 26 to 28, says ministry On May 15, PSD director-general Tan Sri Wan Ahmad Dahlan Abdul Aziz said several ministries, agencies and departments had started receiving WFH applications from civil servants. He did not reveal the number of applications received but stated that some had already been approved. Meanwhile, Putrajaya Indian Civil Servants Association (Imaiyam) chairman Dr Sathiskumar K. Muthusamy said the WFH approach strengthens work-life balance for civil servants and presents Malaysia as a country that supports modern, family-friendly and resilient work practices. On whether or not WFH would reduce work productivity, he said that for the most part, public servants are already familiar and skilled with digital systems. "In some cases, productivity increases because of fewer disruptions, such as time lost in traffic congestion, which in turn leads to more flexible time management. "WFH can also be seen as an opportunity to prove the ability to work flexibly without compromising service quality,' said the senior occupational health medical officer at Hospital Putrajaya. The summit will see ministerial-level meetings on Sunday (May 25), while the leaders' summit will commence the following day. Themed "Inclusivity and Sustainability", the summit aims to serve as a foundation for regional and global engagement. Malaysia is committed to strengthening Asean centrality, fostering economic cooperation and championing the principles of inclusivity and sustainability. – Bernama
The Star
17-05-2025
- Business
- The Star
Malaysian Employers Federation welcomes Socso Amnesty Programme extension
PETALING JAYA: The industry has collectively saved RM100mil through the waiver of compounds and late payment charges under the Social Security Organisation (Socso), says the Malaysian Employers Federation (MEF). Its president, Datuk Dr. Syed Hussain Syed Husman, welcomed the extension of the Socso Amnesty Programme in a statement on Saturday (May 17). The programme will run until May 31, as announced by Human Resources Minister Steven Sim. 'The amnesty, which allows employers to settle outstanding Socso contributions without incurring any penalty, compound, or late penalty charges, is a significant,' he said today. Syed Hussain said 220,000 employers voluntarily regularised their Socso contributions throughout the amnesty programme (April 1 to 30). The federation also revealed that one million new workers are now protected under the Socso scheme. 'MEF reminds all employers that protecting workers is not just a legal obligation but a shared responsibility in building a resilient workforce,' said Syed Hussain. He added that the MEF also strongly encouraged all employers to register their employees with Socso and ensure compliance with labour and social security protection laws.
New Straits Times
17-05-2025
- Business
- New Straits Times
MEF welcomes Perkeso amnesty extension, urges employers to act before deadline
KUALA LUMPUR: The Malaysian Employers Federation is calling on all employers to take full advantage of the Social Security Organisation's amnesty programme, which runs until May 31. Its president Datuk Syed Hussain Syed Husman said the initiative allows employers to settle any outstanding Perkeso contributions without facing penalties, compounds, or late charges. He described the amnesty as a significant move to improve social security coverage for workers nationwide and to encourage greater compliance with both Malaysian laws and international standards. "This amnesty is a win-win for employers, employees, and the nation. MEF reminds all employers that protecting workers is not just a legal obligation but a shared responsibility in building a resilient workforce. "The programme not only strengthens the nation's social security protection system but also aligns with Malaysia's obligations under the International Labour Organisation (ILO) conventions on social security and decent work. "MEF strongly encourages all remaining employers to take advantage of this extended amnesty window to register their employees with Perkeso before May 31 and ensure compliance with labour and social security protection laws. "This is an important step towards building a fairer and more resilient labour market for all. Employers who have yet to fully comply with Perkeso's contribution requirements should do so urgently to avoid future risks, such as strict enforcement including audits, prosecution and penalties will resume after the amnesty ends." Syed Hussain added that MEF also expressed its appreciation to Human Resources Minister Steven Sim, the ministry and Perkeso for the commendable initiative. "It demonstrates a pragmatic and compassionate approach that encourages compliance while strengthening Malaysia's social security protection frameworks. "MEF applauds the government for giving employers a second chance to regularise their obligations without fear of penalties." Syed Hussain said that from April 1 to 30, the amnesty programme saw 220,000 employers voluntarily come forward to regularise their Perkeso contributions, resulting in one million workers now newly protected under the scheme. The industry, he said, has collectively saved RM100 million through the waiver of compounds and late payment charges. "These results reflect the commitment of employers to do the right thing when given the opportunity and support to comply with the law. "As a responsible voice of employers in Malaysia, MEF remains fully supportive of government efforts to ensure no worker is left behind in the national social security protection." employers who have yet to register companies and workers were urged to do so before the 15th Ops Kesan is carried out in June.
