GEORGE TOWN: Starting salaries for fresh graduates entering the job market has risen by about 30% compared with before the pandemic due to lifestyle and high cost of living, say recruiters and human resource practitioners.
In Penang’s hotel and tourism industries, starting salaries for fresh graduates now are at RM2,500 onwards while in the manufacturing sector, the starting salary for engineers can be RM4,000 and as much as RM5,000.
Malaysia Association of Hotels (MAH) Penang chairman Tony Goh said the higher salary is due to the supply and demand in the tourism industry and taking into account the current higher cost of living.
“For us now, salaries are definitely higher compared with before the pandemic. We don’t expect them (new graduates) to work with a basic salary of RM1,300 to RM1,500 like before.
“The second thing is, people must be able to sustain the lifestyle they need while working with us, hence the need for higher basic salaries,” he said.
He said the minimum wage rule imposed by the government last year contributed to the generally higher salaries for all other positions now.
He said new graduates who are eligible and qualified would be paid a basic salary of around RM2,500, excluding allowances.
Since May 1 last year, employers with five or more workers were required by the Minimum Wages Order 2022 to increase the minimum wage to RM1,500.
Goh said among the careers sought by new graduates in the hotel and tourism industries are receptionists, executives, sales coordinators and administration executives.
In an exclusive report yesterday, The Star revealed that industry research showed that fresh graduates’ salaries ranged from about RM2,600 to almost RM2,900 in the Klang Valley and Johor Baru, while it was about RM2,400 in Melaka.Leaders of business NGOs interviewed opined that fresh graduates should manage their starting salary expectations, on top of reviewing their life goals.
But a check in Penang’s manufacturing sector showed that graduates with Science, Technology, Engineering and Mathematics (STEM) capabilities might enjoy a much better starting point.
Factories can pay fresh graduates as much as RM5,000 if they are involved in the design and development of integrated circuits, said Malaysia Semiconductor Industry Association’s Datuk Seri Wong Siew Hai.
“Generally, any STEM graduate working in Penang’s factories can expect a starting pay of about RM3,500,” he said.
He urged parents to help their children develop a passion for STEM to give them a good starting point after getting their first degree.
Pentamaster Corporation Berhad group executive chairman Chuah Choon Bin said the median salary for STEM graduates in Penang now is about RM4,000, and this is due to the surge in foreign direct investments (FDIs) in Penang last year.
“Because of the high FDI, there is a lot of competition for manpower, so multinational companies increase the offered pay to attract skilled workers and fresh graduates,” he said.
Chuah, however, said this year, the hiring wave is down a bit due to the slowing global consumer market, the trade war and the war between Russia and Ukraine.
He said some companies have started slashing down their workforce by implementing voluntary separation schemes and shortening operating hours to cut costs.
Chuah said he expects the slowdown to continue until the end of the year, depending on the outcome of the Russia-Ukraine war and how intense the trade war between the United States and China would be.
Human resource specialist Azimah Aziz said that normally starting salaries are based on job scope and the candidate’s experience.
“For example, for the starting salary of a research assistant in aquaculture, the basic pay starts from RM2,900 for a fresh graduate,” she said.
She said among the criteria that recruiters look at before hiring were if prospective employees were willing to take up the challenges and go the extra mile to execute and deliver their work.
Fresh grads want too much
thestar.com.my/news/nation/20
Employers unable to meet fresh grads' high salary expectations
We want liveable wages,
not merely
high salaries’
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