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Low salary for graduates is the fault of company and government policies

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As seen in the Star,

There are several letters debating on basic salary for graduates in The Star. Seem the local employers are habitually put the blame on the poor attitude and lack of English proficiency of our graduates.

This scenario is not entirely true.

Malaysia economy had been stuck in the middle-income trap due to local company’s short-sighted human resources policy. The import of several millions cheap and low-skilled foreign workers was the beginning of low pay era. Local companies are competing on low labor cost for low valued added products and services since 80s after the very lenient and unplanned foreign worker import policy was introduced.

For instance, RM2,500 is deemed high because local companies only surviving factor is low cost. They are comparing Malaysia salary with Indonesia, Vietnam, etc. after being trapped in the same playing ground with them, and wrongly perceived RM2,500 is a high salary in Malaysia.

Unfortunately, Malaysia’s living cost is a few times higher than our neighbors and our workers are feeling the pinch of stagnant salaries and decreasing purchasing power over the years.

Moving to higher operational efficiency and up value chain should be […]