Malaysia still has a huge number of jobless young people and fresh graduates and while the corporate sector wants to fill in the job demand, many employers indicated that the latest wage hike is "unfair."
According to The Asean Post, one of the reasons why there is a lack of jobs for fresh graduates and youth in Malaysia is because both employers and applicants disagree with the minimum wage offers in the domestic corporate world.
This year, the Malay government rolled out in order to increase the minimum wage offers for job applicants. From RM 1,000 ($240), the minimum wage is now at RM 1,050 ($252). The wage hike didn't do much to entice graduates and youth to apply for jobs as they see the increase as relatively low when computed into monthly average salaries.
On the other hand, companies have started expressing disappointment over the wage increase. According to Executive Director of the Malaysian Employers Federation (MEF), Shamsuddin Bardan, the minimum wage increase was received negatively by employers who said the hike was "unfair to employers."
Still, some studies revealed that the minimum wages that Malaysia offers are not enough to sustain a frugal youth's lifestyle. The Belanjawanku (My Expenses) guide for 2019 that the Employee Provident Fund (KWSP) of Malaysia published suggested that a minimum of RM1,870 or $448.8 per month is necessary for a practical and economy-wise employee.
Last week, Channel News Asia reported that another problem Malaysian fresh graduates are faced with is the lack of high-skilled jobs that the country is creating. A study by the country's central bank revealed that there has been a decline in starting monthly salaries for graduates since 2010.
Aside from the lack of high-skilled jobs offered in Malaysia, a study by the Khazanah Research Institute found out that around 50 percent of young workers in low-skilled jobs are over-qualified for their positions. "Despite obtaining a high level of education, employees had to settle for jobs that typically do not require such education levels," the central bank pointed out.
Meanwhile, employers are expected to feel the heat with the government's call for higher minimum wages. To help curb the potential losses that the significant wage increase could bring to Malaysian businesses, employers have been urged to roll out periodic increases instead of implementing a sudden, drastic increase.
The standardized new minimum wage announced by the Prime Minister's Office kicked off implementation on January 1 and was ordered following deliberations on the recommendations submitted by the National Wages Consultative Council of Malaysia.
