Starting salary in Malaysia too low

The current economic situation in Malaysia has urged citizens to have more than one job despite being degree holders.

This is because the starting salary is very low and insufficient to cover the minimum cost of living.

According to a Professor from the School of Economics, Faculty of Economics and Management, Universiti Kebangsaan Malaysia, Prof. Dr. Rahmah Ismail, the payment of wages or salary in Malaysia is much lower than our neighbour Singapore, but higher than Indonesia and Thailand.

"However, the cost of living here in comparison with Indonesia and Thailand is higher which causes our "real wages" to be viewed as much lower.

"In moving towards becoming a high-income country, Malaysia should offer higher salaries to its employees. The current wage rates in Malaysia do not reflect the level of education. In the private sector, for example, most salary is paid according to work experience and often times those holding a diploma will receive a higher pay compared to their degree holder peers.

"However, this problem must be dealt with carefully so that the salary or wages paid to employees are in line with their productivity," she said.

Rahmah also believes most urban residents had to do more than one job just to survive and provide for their basic needs.

A salary of between RM3,000 and RM4,000 a month can be considered low and not enough to meet the minimum requirements for those who are already married and have children.

The government has classified households earning RM3,850 and below as urban poor and deserving of Bantuan Rakyat 1Malaysia (BR1M).