He said tertiary graduates typically enter the job market with limited practical experience.
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A business group leader has warned that the government's proposed RM2,500 starting monthly salary for graduates and semi-skilled workers could inadvertently discourage companies from hiring entry-level job seekers
Miri Sarawak Bumiputera Entrepreneurs Chamber chairman Miri Sarawak Bumiputera Entrepreneurs Chamber chairman Hafidz Rohani cautioned that the proposed salary floor could create entry barriers for young people trying to secure their first jobs, particularly if companies must absorb higher wage costs without immediate productivity gains or dedicated government training subsidies, according to FMT.
Drawing on his background as an entrepreneur, Hafidz observed that recent tertiary graduates typically enter the job market with limited practical experience
"If employers are expected to offer a starting salary of RM2,500, some may prefer to recruit experienced workers who can contribute immediately, rather than take on fresh graduates who require training and guidance," Hafidz said, urging policymakers to consult business owners to better understand the realities of running a business.
He stressed that entry-level candidates need opportunities to join the workforce, learn alongside senior colleagues, and demonstrate their potential over time.
However, if cost pressures make companies increasingly reluctant to hire inexperienced hires, young job seekers could face prolonged periods of unemployment.
"We want graduates to earn a decent income, but we must also ensure that businesses are willing to hire and train them," he said, clarifying that while he supports wage growth, compensation frameworks should account for individual skill levels, job complexity, and an employer's capacity to provide professional mentorship.
Sustainable salary growth, he added, remains closely tied to rising productivity and broader business performance.
Hafidz also urged the government to clarify the policy's scope, specifically whether the RM2,500 baseline will apply to all companies or only designated sectors
The feedback follows Prime Minister Datuk Seri Anwar Ibrahim's tabling of Budget 2027, which proposed a RM2,500 starting monthly salary for graduates and semi-skilled workers as part of wider national wage reforms.
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