65% of Degree Holders in Malaysia Earn Below RM3k

Over 65 percent of degree holders in Malaysia earn less than RM3,000 a month, a figure sufficient only to cover basic necessities, with little room to save, invest, or move up the socioeconomic ladder. 

In addition, more than 70 percent of graduates are forced to work in semi-skilled or unskilled sectors. 

These findings were presented in a study titled "The 'Gaji Cukup Makan' Economy: When Higher Education Becomes an Economic Risk", conducted under the Malaysia Labour Market Insight Series. Its author, Dr Mohd Yusof Saari, said the report revealed a deep structural crisis between higher education and employment, with tertiary education no longer guaranteeing wages that match qualifications and skill levels. 

"This reveals the true state of graduate employability, which is often reported to be above 80 percent", he added. 

He also pointed to the widespread mismatch between academic qualifications and employment as a sign of declining returns on investment in higher education. He explained that although skill mismatch is not unique to Malaysia, and occurs even in developed countries, the situation is more pronounced here due to persistently low salaries. 

"This offers no protection to those working in jobs that do not match their qualifications. In Malaysia, the mismatch leads to deeper economic vulnerability, limits upward mobility, and reduces the incentive to pursue higher education – especially among lower-income groups", he highlighted. 

Consequently, pursuing higher education is becoming increasingly risky from an economic standpoint, particularly for young people who must bear the rising cost of education without the assurance of commensurate salaries. He said the growing disconnect between qualifications, job quality and career rewards is challenging the traditional belief that education guarantees better social mobility. 

"The report identifies several key causes of this crisis, including sluggish wage growth, weaknesses in pre-employment preparation, and low demand for skilled labour from the private sector. These factors have resulted in a stagnant wage trajectory, where the income gap between graduates and non-graduates is minimal – especially during the early stages of their careers". 

The author called for structural reforms, including the replacement of misleading employability indicators with measures that reflect actual skill matching. Other proposals include the development of a long-term graduate outcome tracking system, the restructuring of industrial training and pre-employment pathways, the modernisation of industries, and the redesign of jobs to address deeply rooted structural issues. And even to introduce wage guidelines as an advisory tool to address wage suppression. 

Hopes of securing a second title on the trot came to an end for Pearly Tan-Thinaah Muralitharan in the semi-finals of the women's doubles event at the Malaysia Masters today. 

The world No. 4 pair suffered a 21-16, 15-21, 21-14 defeat at the hands of Paris Olympics gold medallist Jia Yi Fan and her new partner Zhang Shu Xian (world No. 15) from China.