KUALA LUMPUR: The Malaysian Employers Federation (MEF) has called for a thorough study before the government makes a minimum starting salary for graduates mandatory.
Its president, Datuk Syed Hussain Syed Husman, said salary requirements varied across industries depending on the skills and knowledge required for different professions.
"While some basic knowledge can be the same, the details of the professions require different skills and knowledge.
"Industries may have different entry-level salary points to suit their respective requirements.
"A one-size-fits-all recommendation may be risky and not applicable," he said when contacted.
He was commenting on the government's plan to amend the National Wages Consultative Council Act to compel employers to pay graduates a minimum starting salary of RM2,500.
Syed Hussain said hiring decisions went beyond academic qualifications, with employers also assessing candidates' communication, teamwork, presentation and analytical skills.
"We must also not be in a position where we cannot decide the starting salary based on the strength of the candidate.
"MEF has no objections to any studies, but it is the execution that we are worried about," he said.
Syed Hussain said businesses were already struggling with supply chain disruptions, geopolitical tensions, rising costs, margin compression, higher interest rates, higher statutory deductions and delayed payments.
He added that the recent minimum wage increase was about 18 per cent higher, and many employers were still struggling with the RM1,700 rate before it rises to RM2,000.
"Any additional cost increase may not be the right time.
"We must learn to phase things for better success. It's all about timing the implementation, not agenda ticking," he said.
Syed Hussain said MEF remained open to collective discussions to address issues, for industrial harmony and acceptance by all stakeholders.
The Human Resources Ministry will introduce guidelines on starting salaries for graduates and semi-skilled workers by June 2027, following the government's announcement of a proposed RM2,500 minimum starting salary under Budget 2027.
Its minister, Datuk Seri R. Ramanan, said the guidelines would provide employers and workers with a reference for basic starting salaries based on occupations, educational qualifications and skills.
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