Friday, March 29, 2019

Fresh Grads' Salaries in Decline, Says BNM

Bank Negara Malaysia Annual Report 2018 revealed that degree holders are facing a double whammy as they stare at shrinking starting salaries coupled with a declining demand for high-skilled jobs. 

When adjusted for inflation, the starting pay for graduates with a basic degree was RM1,993 in 2010, whereas the amount dropped by RM10 to RM1,983 in 2018, while a Master’s degree holder faced a bigger decline in the same period from RM2,923 to RM2,707. 

Between 2010 and 2017, the number of diploma and degree holders in the labour force increased by an average of 173,457 persons per annum, much higher than the net employment gains in high-skilled jobs of 98,514 persons per annum. 

This suggests that the economy has not created sufficient high-skilled jobs to absorb the number of graduates entering the labour force. 

The cost of education keeps rising skyward but starting salaries have regretfully, not kept pace. 

The report also cited a study by Khazanah Research Institute which found that 95 percent of young workers in unskilled jobs and 50 percent of those in low-skilled manual jobs were over-qualified for these occupations. 

“If left unaddressed, this could reduce the incentive for the younger population to pursue higher levels of education and potentially exacerbate the ‘brain drain’ issue in Malaysia”, the BNM report said. 

However, for those without a tertiary education, the implementation of the minimum wage has supported increases in the salaries of lower-skilled workers. This has allowed the starting salaries for those at the bottom-end of the education attainment spectrum to catch up. 

For sure, this presents a frightening prospect indeed for Malaysian graduates. 

Yesterday, I was at the EcoWorld BBCC Sales Gallery in Jalan Hang Tuah, KL to attend their Toastmasters meeting.

And I was the Toastmaster-of-the-Evening. 

Kindly check out the photos taken at the said meeting:

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