The proposed RM2,500 starting salary for semi-skilled workers and fresh graduates should be carefully assessed to ensure efforts to provide decent incomes do not unintentionally reduce job opportunities for young people entering the workforce, says a business leader.
Sarawak Bumiputra Entrepreneurs Chamber (DUBS) Miri chairman Mohd Hafidz Rohani said the government’s intention to ensure salaries better reflected workers’ qualifications and skills was understandable, but the potential impact on employers’ recruitment decisions also needed to be considered.
Based on his experience as an entrepreneur and businessman, Hafidz said fresh graduates typically entered the workforce 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,” he told The Borneo Post when asked about Budget 2027, which was tabled by the prime minister last Friday.
Concerns over entry-level jobs
Hafidz said the proposal could create unintended challenges for young job seekers, particularly if businesses were required to pay higher starting salaries without corresponding improvements in productivity or sufficient support to develop new employees.
He stressed that his concern was not opposition to better wages for graduates, but the need for wage policies to account for differences in workers’ experience, skills and productivity.
He also said the scope of the proposed RM2,500 starting salary measure, including whether it would apply to all companies or specific categories of employers, needed to be clarified before its potential impact could be fully assessed.
“Fresh graduates need 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 jobs.
“We want graduates to earn a decent income, but we must also ensure that businesses remain willing to hire and train them,” he said.
Call for flexible implementation
Hafidz said the government should consult employers before finalising the implementation framework to understand the practical challenges they might face.
He suggested considering a more flexible approach that takes into account job requirements, workers’ experience and employers’ capacity to provide training and career development opportunities.
Such an approach, he said, should balance the need to improve starting salaries with the importance of ensuring young people continued to have access to entry-level jobs.
Hafidz added that sustainable wage growth should ultimately be supported by higher productivity, stronger business performance and better skills development, enabling employers to offer better salaries while continuing to create employment opportunities.
