RM2,500 minimum pay may deter bosses from hiring fresh grads, says group

A proposed minimum monthly salary of RM2,500 for graduates and semi-skilled workers in Malaysia could dissuade employers from hiring inexperienced job seekers, warns Miri Sarawak Bumiputera Entrepreneurs Chamber chairman Hafidz Rohani. Hafidz noted that the higher starting salary might make it more difficult for young people to find their first job, especially if businesses need to pay more without seeing improved productivity or sufficient support to train new employees.

Drawing from his entrepreneurial background, Hafidz argued that fresh graduates often enter the workforce with limited practical experience, and employers might instead opt for experienced workers who can start contributing immediately. He called on the government to consult with employers to understand the real-world challenges businesses may face in hiring inexperienced workers.

While Hafidz supported the aim of ensuring workers earn wages appropriate to their qualifications and skills, he stressed that businesses should also be considered in determining pay. He proposed a more flexible approach that factors in job requirements, workers' experience, and employers' ability to provide training. Hafidz emphasized the need for sustainable wage growth backed by increased productivity, improved business performance, and better skills development, which would enable employers to pay higher salaries while still creating jobs.

The scope of the proposed RM2,500 salary, including whether it would apply to all companies or specific types of employers, remains unclear. Prime Minister Anwar Ibrahim announced the proposed reforms during the 2027 budget, stating that graduates and semi-skilled workers would receive the minimum monthly salary.