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.