Former Governor of Bank Negara Malaysia, Tan Sri Muhammad Ibrahim, has come forward to voice his concerns over the state of graduate salaries in the country, which are considered far behind in terms of growth rates and actual purchasing power.
According to him, if the annual inflation rate of around 5% since 1984 is taken into account, the starting salary for university graduates today should be in the range of RM7,000 to RM8,000 per month.
However, the reality is very disappointing. Most graduates today only receive salaries of around RM2,000 to RM3,000, and even that if they are lucky – some are even paid less than that rate.
Tan Sri Muhammad also stressed that Malaysia has been trapped in the middle-income trap for too long, and this situation will worsen if the country continues to rely on cheap foreign labor and does not make changes to the increasingly outdated education system.
He warned that without comprehensive reforms, Malaysia risks a new generation being forced to work as domestic workers abroad.
He urged the government and the people not to remain complacent by comparing Malaysia's achievements with weaker ASEAN countries.
Instead, emulate countries such as China, South Korea and Taiwan that have successfully boosted their economies through bold reforms and the creation of high-quality jobs.
He criticized the government's complacency and called for a complete overhaul of its approach to the economy and wages before Malaysia becomes a factory exporting qualified workers.
