Why are Malaysians earning so little? The truth will suprise you
Summary
TLDRThis 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
📉 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.
💼 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.
Mindmap
Keywords
💡Fresh Graduate
💡Salary
💡Pandemic
💡Inflation
💡High Skill Job Creation
💡Overqualified
💡Employer
💡Digital Skills
💡Salary Negotiation
💡Remote Work
💡Entrepreneurial Path
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
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