The survey found that these graduates typically expect salaries between RM1,800 to RM2,100 (73 percent), but only 54 percent would have their expectations met. Another 35 percent's pay was below RM1,800.
Meanwhile, 37 percent of diploma holders's salaries were lower than RM1,200, "far below their expected salary level" that is typically between RM1,200 and RM1,800 (67 percent of respondents).
The entry point salary level for degree holders has remained stagnant since 1997. It is shocking to note that cost of living has doubled, if not tripled, during the same period. The number of tertiary institutions has grown significantly but we are merely churning out new generations educated poor.
The same report mentioned that respondents needed RM700 to make ends meet. These ends must be really short ones! Rental rates in certain areas in Klang Valley have ballooned to almost RM500 per room per month.
Coupled with cost of transportation, food and basic amenities such as health care and basic household products, it means that those who are earning less than RM1800 a month do not have anything extra for contingency. It is almost unimaginable how those who are earning less than RM1000 are going to survive in the city.
What has gone wrong? There are several reasons:
1. Malaysia's economy continues to compete on cost and not knowledge, ideas and innovation
2. A lot of jobs are being created but quality ones are far too few to accommodate knowledge workers. A lack of appreciation for good ideas, knowledge and soft skills means employers are reluctant to pay any premium for good knowledge workers
3. There is a general sense of inferiority of local graduates to an extend that employers do not rate them highly. Poor English proficiency and communication skills have often being cited as a major setback for local graduates. Both private and public education systems are either too commercially driven or lackluster.
4. Unregulated foreign/migrant workers are the main obstacle for Malaysia to break the low income barrier. I find it both tragic and sad to find front line industries hiring lowly skilled and educated foreign workers to serve clients and customers. The government has to regulate foreign workers before the situation gets any worse. They should study how Taiwan, Japan, South Korea, Hong Kong and Australia regulate foreign workers. There are many examples in the world to help put the interest of local employees above that of foreign workers.
The government has promised to help raise income level to more than USD15,000 by 2015 through its various ETP programmes. Defacto EPU Minister Mustapha Mohamad had merely made a statement but we are still awaiting his plan and strategy to ensure that Malaysia is able to double its income in next 3 years. It takes a miracle to achieve this goal if the government continues to do nothing but just paying lip service to its aim.
A few investors at an investment seminar lamented that Malaysian politicians wake up every morning thinking only about power grab and electoral victory. This is the most damaging observation about our country.
It does not help when one coalition is asking for absolute majority to maintain status quo and the other one is asking for more time to prove themselves. Five years is what a modern electoral democracy can give any government to prove their worth. Not another 50 years, 20 years or 15 years.
The more pertinent question is what will Malaysia become in the next 3-5 years under the prevailing condition?
10 comments:
Graduates are a dime a dozen joining our neighbours from Indonesia and Philippines. Soon we'll have graduates as maids and taxi drivers like them.
It's quality rather than quantity. Somehow we deliberately promoted those who are more suited with their hands i.e. tradesman from Polytechnics and Community Colleges to Uni Grad.
Why can't we have tradesman with reasonable pay as well, rather than make everyone a graduate.
It is quite easy to understand. Or just not. We have a huge group, maybe millions, of 'hidden unemployed'.
Go to any counter, anywhere: it is overstaffed. Get a TNB-vehicle to make a minor repair in your neigbourhood and you get 3 people coming, if not 3 vehicles. But that's not limited to GLCs.
While this is socially favourable, the productivity drops to levels around freezing. Go to a Senheng outlet of your choice. I did, and found that the overstaffed, hanging-around people have usually diploma if not degree. And most of the time, the staff outnumbers customers. There is no blame on the owner for not paying the staff a reasonable amount. From what?
Just as example. This is not limited to government offices. Just any place. Walk about for some days with an open mind after having read this and come back then and tell all of us, how 'busy' people were, how many were lurking / lingering around, and how many you could make out behind a single counter. Just visit your GP in your area and count the number of nurses behind the counter. And I could go on and on and on.
So what is actually asked in here? What do we want? As a society? Some highly paid, hard-working employees and tens of percent of unemployed or almost everyone employed for a very small salary?
It is actually much more sinister than you made out in your questions 1-4. The problem is different.
Yes, the quality of the graduates is by far too low for high-flying jobs. Though, those jobs would be numbered in any case.
This is one of Najib's NKRA achieved.
This is the direct result of that evil previous PM who knows that lowly educated, misinformed youths are easy to govern and easily led to the slaughter. Anyone who's smarter will know how to think and question and that's the last thing BN wants. So they keep the education of the masses low while they continue to rape and plunder the country. Bring back the education system of the good old days and restore its former glory.
we have 200,000 students per session from UiTM and they us what is their standard. Cant competed with Thailand University graduates..So weare not producing world standard..We are producing Kampung standard. so tell us how can we achieve USD15,000..Malaysia Boleh
Khoo,if Jobsheet.com's report is accurate then something must be very wrong.If half of bachelors degree holders are getting between RM1,800 - RM2100,and another thirty five percent getting below RM1,800 then there must be many with no degrees and diplomas unemployed,or working but living a life of proverty.
I am too shocked and surprised to comment,as I know that there are abundant high end cars and suv's costing hundreds of thousands of ringgits on the streets.Maybe many of these playtoys are owned by family members of corrupted politicians and their cronies.Maybe being out of the country for the last twenty something years have left me ignorant of the goings on.Better leave this subject to the better informed to comment.
Even the salary of an operator in SG also higher than our local graduates. Shame !
Even the salary of an operator in Sg also higher than our local graduates.... Sia sui(Shame) ... like that what for they wasted 4 years in university ?? !!!! In my opinion , earning SG Dollar , spend RM , that would be the best solution !!!! That's why everyday there are thousand of peoples go to work in SG
Graduates can't write, speak and read english proficiently, it is a 'kampung' standard nobody can afford to hire with starting pay of $1,800-$2,500, except the government.
Great you mentioned the causes that many pundits get wrong, i.e. unregulated importation of low skill labors.
Besides, I would like to add 2 more points which has 'brew' the stagnant income growth of our educated labor force. BREW is the proper word because it takes time (like frog in the boiling water) for the problem to mature.
1) Malaysia is burdened with the over-subsided need help mentality as a result of the age old govt policy. It is damaging our overall competitiveness.
2) Most important of all: what we are facing now is actually the price we are paying back as a result of the capital control and financial policy imposed during the 97/98 crisis. Many foreigner capital has 'burnt' or feel cheated by it. Over the last 13 years, in term of FDI, we already lost to Indonesia and Thailand, not to mention Singapore & Vietnam.
Do you still remember 13 years ago, when Malaysia was in the middle of self-praising after 'successfully preventing' the total collaspe after the start of the capital control? Do we still remember how Malaysia reacted (mostly in negative way) by thinking how 'stupid' the Indonesia, Thailand and Korea taking IMF formula and purge its financial system all together? Now, please look at ourselves relatively to these countries that we though was doomed in 1998.
I remember clearly when a reporter ask Jim Rogers during his visit to Malaysia 2009 (didn't mentioned in mainstream media of course) about Malaysia FDI potential. He replied quite briefly by saying something like: " everybody (capital market firms) still has flesh memory of M's capital control and cannot get out and been stuck. [reported probed that it has already more than 10 10 years] he replied: no, 10 years is not too long ago, believe me, most still remember that". He never mentioned a dim about our potential.
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