Why are Malaysians earning so little? The truth will suprise you

Summary

This video addresses the concerning issue of low salaries for fresh graduates in Malaysia, which has been on a decline since 2010, exacerbated by the pandemic. It highlights the lack of high-skilled job creation and the underpayment by Malaysian employers compared to global benchmarks. The video refutes the notion of Malaysians being lazy, suggesting systemic issues in the job market. It offers practical advice for graduates to improve their earning potential, including upskilling in digital areas, salary negotiation, and seeking international employment opportunities.

Takeaways

• 📉 The starting salary for fresh graduates in Malaysia has been on a declining trend since 2010, with significant drops in real starting salaries across different educational levels.
• 🌐 The COVID-19 pandemic has accelerated the decrease in fresh graduate salaries, but the underlying issue of low salaries predates the pandemic.
• 🔍 A lack of high-skilled job creation is a significant factor contributing to the low salaries, with many graduates being overqualified for the jobs they take.
• 🏢 The job market in Malaysia is not creating enough high-skilled roles to accommodate the number of fresh graduates entering the workforce each year.
• 💼 Many Malaysian employers are paying below the benchmark compared to other economies for the same level of productivity.
• 🤔 The perception that Malaysians are lazy is unfounded, as many are working multiple jobs or upskilling to improve their economic situation.
• 💡 To increase salary prospects, individuals should observe market needs and acquire skills that are in high demand, such as digital skills.
• 💼 Employers value capability and a portfolio showcasing skills over formal degrees in many high-paying roles, especially in the tech industry.
• 💰 Negotiating salary is a critical skill that can lead to significantly higher lifetime earnings; it's important to be proactive and prepared in salary discussions.
• 🌍 Seeking foreign employment opportunities, especially remote work, can provide access to higher salaries and a broader range of job options.
• 💼 For those interested, entrepreneurship can be a path to creating multiple income streams and potentially higher earnings.

Q & A

What is the starting salary for fresh graduates in Malaysia according to the transcript?

The starting salary for fresh graduates in Malaysia has dropped to nearly 1,000 to 1,500 ringgit, with some starting as low as 1,000 ringgit.

How has the fresh graduate salary trend been in Malaysia since 2010?

The fresh graduate salary in Malaysia has been on a declining trend since 2010, with the pandemic further accelerating the decrease.

What is the role of the pandemic in the decrease of fresh graduate salaries in Malaysia?

The pandemic is said to have accelerated the decrease in fresh graduate salaries, but the trend of declining salaries was already present before the pandemic hit.

What is the issue with high-skilled job creation in Malaysia as per the transcript?

The issue is that the economy is not creating enough high-skilled job roles to cater to the Malaysian fresh graduate population, leading to a surplus of overqualified workers in low-skilled jobs.

Why do many Malaysians feel unappreciated for their work?

Many Malaysians feel unappreciated because, despite being productive, employers pay them less compared to benchmark countries for the same level of output.

Which industry is mentioned as being the most underpaid in Malaysia?

The wholesale, retail trade, finance, and accommodation sectors are mentioned as being the most underpaid in Malaysia.

What is the suggestion for fresh graduates to improve their job prospects?

Fresh graduates are suggested to learn digital skills such as digital marketing, web development, software engineering, and UI/UX design, as these are in high demand and can lead to higher paying jobs.

Why is it important for employees to negotiate their salary?

Negotiating salary is crucial as it can lead to significantly higher lifetime earnings. Women who consistently negotiate their salary earn at least one million more over their lifetimes on average than those who do not.

What is the role of foreign employment opportunities in improving salary prospects for Malaysians?

Foreign employment opportunities, especially remote work, can offer higher salaries, often paid in foreign currencies like USD, which can significantly improve the earning potential of Malaysians.

What are some platforms mentioned for offering freelance services to international markets?

Platforms like Fiverr and Upwork are mentioned for offering freelance services in the international market, which can lead to higher paying job opportunities.

How can Malaysians improve their salary prospects according to the transcript?

Malaysians can improve their salary prospects by learning digital skills, negotiating their salary, seeking foreign employment opportunities, and considering entrepreneurial paths.

Outlines

00:00

📉 Declining Salaries for Fresh Graduates in Malaysia

This paragraph discusses the concerning trend of low starting salaries for fresh graduates in Malaysia, which has been on a decline since 2010. The script highlights that the starting monthly salary for most fresh graduates has dropped significantly, with some earning as low as 1,000 to 1,500 ringgit, a stark contrast to the pre-pandemic range of 2,000 to 2,005 ringgit. The pandemic is cited as an exacerbating factor, but the core issue is the lack of high-skilled job creation. The data reveals a mismatch between the number of graduates and the available high-skilled jobs, leading to overqualification in lower-skilled roles. The paragraph refutes the notion that Malaysians are lazy, instead pointing to systemic issues in the job market and the economy, which fail to provide adequate employment opportunities for the educated workforce.

05:01

💼 Strategies for Securing Higher Salaries in Malaysia

The second paragraph shifts focus to practical advice for individuals seeking higher salaries amidst the challenging job market in Malaysia. It emphasizes the importance of understanding market demands and acquiring high-paying skills, particularly in digital fields such as digital marketing, web development, and software engineering. The script suggests leveraging online platforms for skill development and highlights the value of having a portfolio to demonstrate capabilities. It also encourages salary negotiation, emphasizing its significance in potentially earning a million more over a lifetime. The paragraph concludes with suggestions to explore foreign employment opportunities, such as remote work or freelancing, to access better-paying jobs in international markets.

Keywords

💡Fresh Graduate

A 'fresh graduate' refers to a person who has recently completed their education, typically at the university level, and is entering the job market for the first time. In the context of the video, the term is used to discuss the starting salaries of new graduates in Malaysia, which have been reported to be as low as 1,000 ringgit, highlighting the challenges faced by this demographic in securing well-paying jobs immediately after graduation.

💡Salary

Salary refers to the fixed regular payment made by an employer to an employee, typically paid monthly or annually. The video discusses the issue of low salaries among Malaysian fresh graduates, indicating a decline in starting salaries over the years, which is a point of concern as it affects the quality of life and financial stability of new workers.

💡Pandemic

The term 'pandemic' refers to an outbreak of a disease that occurs over a wide geographic area and affects an exceptionally high proportion of the population. The video script suggests that the COVID-19 pandemic may have exacerbated the existing problem of low salaries for fresh graduates in Malaysia, as economic downturns often lead to reduced job opportunities and lower wages.

💡Inflation

Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, the purchasing power of currency is falling. The video mentions that despite real wage growth, the increasing cost of living due to inflation means that employees' buying power is decreasing, which is a significant factor contributing to the perception of low salaries.

💡High Skill Job Creation

High skill job creation refers to the development of employment opportunities that require a higher level of education, training, or expertise. The video points out a lack of high skill job creation in Malaysia as a contributing factor to the low salaries for fresh graduates, as there is a mismatch between the qualifications of graduates and the types of jobs available.

💡Overqualified

Being 'overqualified' means having more education, skills, or experience than is necessary for a particular job. The video script cites a study indicating that a significant percentage of young workers in unskilled jobs are overqualified, suggesting a misalignment between the qualifications of the workforce and the job market's demands.

💡Employer

An 'employer' is a person or organization that employs people for wages or a salary. The video discusses the role of Malaysian employers in the context of low salaries, suggesting that they may not be paying their employees adequately for their productivity levels, which is a systemic issue affecting the overall job market.

💡Digital Skills

Digital skills refer to the ability to use digital technology, communication tools, and the internet effectively. The video emphasizes the importance of digital skills for fresh graduates seeking higher salaries, as these skills are in high demand and can lead to better job opportunities, such as digital marketing, web development, and software engineering.

💡Salary Negotiation

Salary negotiation is the process of discussing and agreeing on a salary and other terms of employment with an employer. The video encourages fresh graduates to master the skill of salary negotiation, as it can lead to significantly higher lifetime earnings. It suggests that being proactive and assertive in discussing salary expectations can result in better compensation.

💡Remote Work

Remote work refers to employment where the employee works from a remote location, typically their home, using digital technology to communicate with the employer and colleagues. The video suggests that remote work opportunities, especially with foreign companies, can be a way for Malaysians to earn higher salaries, as they can tap into international job markets that may offer better compensation.

💡Entrepreneurial Path

An 'entrepreneurial path' refers to the route of starting one's own business or venture. The video briefly mentions this as an alternative to traditional employment for those seeking higher incomes. It implies that creating multiple income streams through entrepreneurship can be a strategy for financial success, beyond the constraints of a traditional job.

Highlights

Malaysian employers are labeled as stingy, with some fresh graduates starting at just one thousand ringgit.

The starting salary for fresh graduates in Malaysia dropped significantly, with some earning as low as 1,000 to 1,500 ringgit post-pandemic.

Data from the Department of Statistics Malaysia indicates a pre-pandemic decline in real starting salaries since 2010.

Bank Negara report shows a decline in real starting monthly salary for fresh graduates with degrees and diplomas.

Master degree holders also experienced a drop in starting salary from 2923 to 2707 ringgit from 2010 to 2018.

The lack of high-skilled job creation is a significant issue, with not enough jobs for fresh graduates.

A study reveals that 95% of young workers in unskilled jobs and 50% in low-skilled manual labor are overqualified.

Many Malaysians work multiple jobs or side hustles to earn more, contradicting the notion of laziness.

The job market's poor state is attributed to a lack of high-skilled job opportunities rather than worker laziness.

Malaysian employers pay less compared to their global counterparts for the same productivity level.

The wholesale, retail trade, and accommodation sectors are particularly underpaid in Malaysia.

Real wage growth has been outpacing productivity growth, but inflation reduces the perceived increase in pay.

Self-improvement strategies are suggested for fresh graduates to secure higher salaries.

Learning digital skills can make job seekers more valuable in the market, with many online platforms offering affordable courses.

Free programming schools like 42KL provide scholarships and real industry projects for students.

Negotiating salary is crucial, with research showing that women who negotiate earn significantly more over a lifetime.

Seeking foreign employment opportunities, especially remote work, can lead to higher salaries.

Freelancing on platforms like Fiverr or Upwork can be a stepping stone to international employment.

Transcripts

do you know that malaysian employers are

labeled among the stingers in southeast

asia like do you know that the starting

pay for some fresh graduate is just one

thousand ringgit

in this video we want to talk about this

problem of low salary among malaysians

fresh crab what went wrong and lastly

i'll be sharing some real proven tips on

how you can get a higher salary as well

if you have any friends who are about to

graduate or are looking for a higher

salary do share this video with them do

it now

based on the department of statistics of

malaysia it is said that the french

graduate salary in 2020 dropped from the

range between 2000 to 2005 to nearly 1

000 to 1 500 ringgit they say that this

is due to the pandemic the economy is

bad is it really true let's take a look

at some data prior to 2020 before all

this pandemic based on a report by bank

negara in 2018

after adjusting for inflation the real

starting monthly salary for most fresh

graduates has actually declined since

2010 the salary of fresh graduates with

a degree went from

1993 ringgit in 2010 to

1983 in 2018. that's a drop of 0.5

while fresh graduates with diploma went

from

1458 ringgit in 2010 to

1376 ringgit in 2018. that is a drop of

5.6

then for master degree holder their

starting salary went from 2923

in 2010 to

2707 ringgit in 2018 that's a drop of

7.4 percent the truth is this whether or

not there's a pandemic malaysian fresh

graduate salary has been on a declining

trend since 2010. i guess the pandemic

simply accelerated the decrease it's

really sad to see the salary of a fresh

graduate can reach the lows of 1 000

ringgit a month that is like some

low-skilled labour job way and i really

wonder how they can survive especially

if they are living in kuala lumpur some

suggest that maybe malaysians are too

lazy that's why the pay is too low no i

don't think so i see so many people

doing rap and many of them also open

stalls at the roadside to make some

extra money i even meet many people who

are actually working two jobs just to

earn a little more money so what went

wrong first the lack of high skilled job

creation it is said that between 2010 to

2017 every year we have an average of

173 457 fresh diploma and degree

graduates who are ready to join the

workforce but the net employment gain in

high skill job is only 98 514 per year

based on data our economy is just not

creating enough high skilled job roles

to cater to the malaysian fresh grad

population a study by kazana research

institute also found that 95 percent of

young workers in unskilled jobs and 50

of those who are in low-skilled manual

labor are actually overqualified that's

like someone who graduated with a

medical degree but because there's no

employment for him so the only thing he

can do is to be a waiter in a cafe don't

get me wrong there's nothing wrong with

being a waiter it's just that the person

doesn't really want to be a waiter but

he's forced to become a waiter simply

because there's not enough employment

opportunity in this field and that's

what's sad about it no wonder so many

brilliant people in malaysia decide to

leave to find better opportunity in

other countries you can't blame them

right so it's not about malaysians being

lazy the job market is actually bad the

truth is i'm also not very surprised by

this because over the years when we look

at many of the business that are growing

in malaysia are the kind that are mainly

reliant on low skill labor even when it

comes to a tech industry well many of

our tech industry are actually

manufacturers rather than the kind that

own the brand or technology and our

government policy doesn't seem to be

encouraging enough for the growth of

high skill job with this kind of trend

going on it almost feels like there's no

point of going to university right study

so much but getting like that muscle and

self chakra in the restaurant you

probably can earn a lot more money

second malaysian employers are really

really quite jumps up actually

i'm not kidding this one data backup i

show you i show you based on the bank

nagara report in 2018 when comparing

productivity and wage level across

economy they found that malaysian's

employer really paid their employees

left for the same productive level to

illustrate this point more clearly if a

malaysian worker is producing an output

worth of 1000 usd the worker will be

paid 340 usd for that output but when it

comes to economies like us uk australia

germany and singapore who are the

benchmark there are workers who produce

1 000 usd in output they wouldn't be

paid 510 for the outfit it's not

malaysian young people lazy or it is

really our employers are generally more

campsite no wonder malaysian employees

tend to feel unappreciated for the work

that they do lah by the way do you know

which industry is the worst wholesale

retail trade fsb and accommodation they

are the most underpaid in malaysia when

compared to the benchmark countries i

having said that having said that i know

there are some employers who are

actually quite generous actually the

wage and productivity gap has been

improving in malaysia in fact the real

wage growth has been outpacing

productivity growth meaning employers

are willing to pay more for the output

of their staff however there is a

problem things are really getting more

expensive because of inflation and

that's why employees still don't feel

that they are being paid well because

although their wage is growing but

things are getting even more expensive

faster so buying power is reducing i bet

you feel that right i live in kl the day

i go and eat the noodle that i like to

go eat from six ringgit increase to 650.

the price increase is almost 10 but

salary we're going crystal percent young

malaysians are not being lazy it is

actually a systematic problem and i can

go on and on talking about this but all

this we cannot do anything about it

right like we always say if you can't

depend on the system you gotta depend on

yourself so the first thing you can do

is observe the market and understand

what the markets need what kind of high

paying job position do you see the most

in today's market personally i find

companies are always looking for digital

related work and they're willing to pay

for it like digital marketers web

developers software engineers ui ux

developers and so on if you're thinking

i did not graduate from this field it's

okay because there's internet today you

can easily learn these skills online

without even going to university you can

use skillshare udemy coursera and other

sites all you need is just an internet

connection and probably 100 ringgit or

less and the good thing about this kind

of role is this the employers usually

care very little about the degree what

matters is your capability so having a

portfolio to back up your ability to do

the work is way better than having a

degree if you don't like online learning

you prefer something face to face

there's even a free programming school

in malaysia today called the 42kl it

provides you with scholarship to learn

as long as you pass their logic tests

and their bootcamp and all of it free of

charge and the good part is their

projects are real industry problems

faced by companies their students are

almost instantly hired after their

studies and yes it also comes with a

pretty high salary personally i think

the future of work is closely related to

technology regardless of whatever field

that you're in so learn some digital

skills that it can make you more

valuable in the job market second always

negotiate your salary do you know that

according to research women who

consistently negotiate their salary earn

at least one million more over their

lifetimes on average than those who do

not yes negotiating salary is a skill

that you have to master period often for

an employer giving you a raise is better

than say firing you because employee

turnover is actually very high cost

provided that your role in the company

is valuable and you can prove it you

should negotiate for your salary i know

many people find it difficult to raise

this subject with their manager but it

is important that you do it because it

is a matter of a million dollars so

don't lose a million bucks just because

you're shy certainly when it comes to

negotiating your salary you got to be

skillful about it it's not a one-off

event thing you will need to plan and

get prepared but it is worth it if you

want us to do a video about negotiating

salary let us know in the comments below

third seek for foreign employment

opportunity today there are many remote

work opportunities available i know many

people who are living in malaysia but

they're actually employed by foreign

companies and often they are handsomely

paid in usd sometimes you may come

across a job posting or friend may refer

the person to you but if you don't have

that opportunity the best way is to

begin by offering your skills as a

freelancer i know friends who actually

offered digital marketing service as a

freelancer to international company and

eventually they were offered a permanent

employment position with us company to

work remotely so if that's the route you

want to take consider using platforms

like fiverr or upwork to offer your

service in the international market and

you can also get involved in certain

online communities like those on discord

group and offer to contribute your skill

set you will never know where the next

opportunity will lead you these are some

real proven tips that i've seen people

doing and help them to land some high

paying job it does involve you putting

some effort but that's how it is right

there's no free lunch in this world you

gotta work for it actually whether the

pay is high or low you still have to

work so why not do a little bit more and

get paid better however if you're

interested in a more entrepreneurial

path you can check out this video about

how i built seven income streams in

three years