PETALING JAYA: The proposed minimum monthly salary of RM2,500 for graduates and semi-skilled workers could deter employers from hiring inexperienced job seekers, says a business group leader.
Miri Sarawak Bumiputera Entrepreneurs Chamber chairman Hafidz Rohani said the proposal could make it harder for young people to secure their first job, particularly if businesses had to pay higher starting salaries without corresponding productivity gains or adequate support to train new employees.
Drawing on his experience as an entrepreneur, Hafidz said fresh graduates typically entered the workforce with limited practical experience, Borneo Post reported.
“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 urged the government to consult employers to better understand the practical challenges businesses might face.
He said fresh graduates needed opportunities to enter the workforce, learn from experienced colleagues and prove their abilities.
“If employers become more cautious about hiring inexperienced workers because of the cost involved, young people could find it harder to secure their first job.
“We want graduates to earn a decent income, but we must also ensure that businesses are willing to hire and train them.”
Hafidz said the government’s aim of ensuring workers received wages commensurate with their qualifications and skills was understandable, but the potential impact on hiring decisions needed to be considered.
He said he did not oppose higher wages, but differences in workers’ experience, skills and productivity should be taken into account when determining pay.
A more flexible approach could consider job requirements, workers’ experience and employers’ capacity to provide training and career development opportunities, he said.
Hafidz added that sustainable wage growth should be supported by higher productivity, stronger business performance and better skills development, enabling employers to pay higher salaries while continuing to create jobs.
He also said the scope of the proposed RM2,500 starting salary needed to be clarified, including whether it would apply to all companies or only certain categories of employers.
Prime Minister Anwar Ibrahim, when tabling the 2027 budget last week, said graduates and semi-skilled workers would receive a minimum monthly salary of RM2,500 under the government’s proposed reforms to the national wage framework.
Anwar said the current minimum wage had raised the income floor for low-paid workers, but wages for skilled employees remained inadequate relative to their qualifications.