PUTRAJAYA: The government has proposed that employers in both the public and private sectors display the salary ranges offered in job advertisements to help graduates easily make informed decisions and address the issue of declining wages among degree holders to minimum levels.
Director of the MBA programme at Putra Business School (PBS), Associate Professor Dr. Ahmed Razman Abdul Latiff suggests that this step would provide transparency, allowing graduates to compare job offers before applying.
"I propose that all employers, including those in the federal and state governments, statutory bodies and the private sector, be required to display the offered salary ranges for graduates.
"This will enable graduates to compare the salary amounts. If some employers continue to offer low salaries, it would be up to supply and demand. Graduates could then make a choice and opt for higher-paying positions," he said today.
He made these remarks while addressing concerns raised by the Minister of Economy, Rafizi Ramli, who noted that the starting salaries for degree holders in the country were not significantly different from the minimum wage for unskilled workers, which is RM1,500 per month.
Rafizi emphasized that when a minimum threshold is involved, the starting salaries for degree holders should be significantly higher to differentiate from that position.
However, initial statistical findings show that these salaries are, in fact, close to the minimum wage threshold.
Additionally, Ahmed Razman suggests the creation of a dedicated online portal that displays the types of positions and corresponding average salary rates.
He stated that this portal would serve as a reference for graduates to gauge suitable salary rates for the positions they are applying for upon entering the workforce.
"We want to avoid situations where employers take advantage and offer low salaries to graduates," he added.
Meanwhile, economic expert Professor Emeritus Dr. Barjoyai Bardai stated that one of the reasons for low starting salaries among graduates is due to a perception among some employers that graduates lack the desired skills.
"Among employers, some believe they have many options and view graduates as lacking the required skills. Consequently, they offer low salaries because they would need to provide additional training to these graduates. This is actually going against the tide, as in other professions such as medicine, even trainee doctors receive salaries commensurate with medical officers because they perform similar duties," he explained.