Employers seek review before RM2,500 graduate pay becomes compulsory

Malaysia’s proposed RM2,500 starting-pay floor for graduates should undergo a detailed assessment before becoming compulsory, the Malaysian Employers Federation (MEF) said. Its president, Datuk Syed Hussain Syed Husman, urged a phased approach, citing varying industry needs and financial pressures on employers.

The government intends to make the requirement binding through amendments to the National Wages Consultative Council Act. Syed Hussain said a uniform salary requirement might not suit every industry because the expertise and knowledge needed differed between professions.

He said academic credentials were only part of recruitment decisions: employers also evaluated communication, presentation, teamwork and analytical abilities. MEF supported conducting studies, he said, but had concerns about implementation and preserving employers’ discretion to determine starting pay according to a candidate’s strengths.

Syed Hussain pointed to business pressures including disrupted supply chains, geopolitical tensions, higher costs, compressed margins, increased interest rates and statutory deductions, and late payments. He said the timing of additional costs mattered and that MEF was willing to hold discussions with stakeholders.

Separately, the Human Resources Ministry will introduce starting-salary guidance by June 2027 covering both graduates and semi-skilled workers, following the Budget 2027 proposal. Human Resources Minister Datuk Seri R. Ramanan said it would offer a basic-pay reference for workers and employers, taking account of occupation, education and skills.