A recent study by a labour market research group has laid bare a sobering reality – many Malaysian graduates are earning just enough to survive.
The report, titled “The ‘Gaji Cukup Makan’ Economy: When Higher Education Becomes an Economic Risk”, challenges the long-held belief that a university degree guarantees a meaningful wage premium or a pathway to a better life.
According to the findings by Future Studies Berhad, the assumption that tertiary education automatically secures a prosperous future is increasingly being dismantled by data. For many young Malaysians, especially those from low- and middle-income families, this promise is falling apart.
And the findings are not just eye-opening – they are heart-breaking.
Despite Malaysia’s consistently high graduate employability rates – often cited as exceeding 80 per cent – the numbers are misleading. These statistics include all forms of employment, even those unrelated to one’s qualifications, field of study, or income expectations.
Let’s look at the facts:
- Over 70 per cent of employed graduates are working in semi-skilled or low-skilled jobs, often far removed from their academic training.
- More than 65 per cent of degree holders earn below RM3,000 a month – barely enough to sustain themselves, let alone support a household or save for the future.
Let that sink in. After years of attending lectures, sitting for exams, completing unpaid internships, accumulating student debt, and making countless personal sacrifices, a significant number of graduates are receiving little more than subsistence-level wages.
This isn’t merely an economic issue – it’s a wake-up call.
The report warns of a steady decline in the return on investment in higher education. What was once viewed as a gateway to upward mobility has, for many, become a high-cost, high-risk pursuit with diminishing returns.
Understandably, more and more parents are starting to ask the hard questions: Is a university education still worth it? And for the first time in generations, the answer is no longer an automatic yes.
Where Did We Go Wrong?
Future Studies Berhad identifies several root causes behind this troubling trend:
- Stagnant wage growth in key industries,
- A limited appetite for high-skilled workers, particularly in the private sector,
- Outdated recruitment models that place little value on specialised knowledge, and
- A glaring gap between academic learning and real-world employability.
The result? Many graduates today start their careers earning salaries not much higher than those with only SPM qualifications. Worse, their career progression is slow – if it happens at all. Many find themselves underemployed, working in positions that neither challenge them nor fully utilise their skills.
This, in turn, leads to disillusionment, reduced self-confidence, and, increasingly, a desire to seek greener pastures abroad. Brain drain is no longer a theory. It’s a consequence of systemic failure.
Skills Beyond Books
In light of these findings, one thing is clear – academic excellence alone is no longer enough. Today’s students must also develop soft skills, adaptability, and entrepreneurial thinking to remain competitive.
Discipline, the right attitude, and commitment are key. A degree may open the door, but it is a graduate’s character, mindset, and initiative that determine whether they will be seen as an asset to an employer – or overlooked entirely.
Those with a strong skill set and business acumen may even choose to create their path by starting a business or offering freelance services. This shift from job-seeking to job-creating mindsets should be encouraged and supported.
A Systemic Overhaul
The report calls for bold and urgent reforms:
- Stop hiding behind inflated employability statistics; instead, publish real data on underemployment and income levels.
- Redesign internship programmes to offer meaningful, skill-based experiences that bridge education and employment.
- Invest in job redesign and industrial upgrading to stimulate demand for high-skilled roles.
- Introduce wage advisory guidelines to correct stagnation and compression.
- Align education with labour market needs by adopting a holistic, outcome-oriented approach that prioritises both relevance and resilience.
In short, we must completely rethink the education-to-employment pipeline. It’s no longer enough to produce graduates – we must prepare future-ready professionals.
Sarawak’s Bold Move
Against this bleak national backdrop, Sarawak stands out with a game-changing decision.
Starting next year, the Sarawak government will offer free tertiary education at all state-owned institutions of higher learning. This landmark move, if implemented fully and inclusively, has the potential to lighten the financial load on thousands of families and encourage more Sarawakians to pursue higher education.
Hopefully, the policy will cover all programmes and not just selected fields. Done right, it could democratise access to education and ensure that no capable student is left behind due to financial barriers.
More importantly, it could restore public confidence in the promise of education as a true equaliser.
The Road Ahead
While Sarawak deserves commendation for its bold initiative, the federal government must also rise to the occasion. There is an urgent need to revisit graduate salary benchmarks to reflect both market demand and the rising cost of living.
Let’s be frank – if we continue to undervalue our brightest minds, we risk losing them altogether. The frustration will grow, and the trust in our institutions will erode.
We can no longer sell the narrative that a degree guarantees a better life without fixing the system behind it. Otherwise, we’re not just failing our youth – we’re jeopardising the future of our nation.
It’s time to reset our expectations and reform our institutions. Higher education, while not a silver bullet, can still be a powerful tool for upward mobility – if supported by the right policies, opportunities, and investments.
Our graduates deserve more than just survival. They deserve the opportunity to thrive.
Aden Nagrace is the Editor-in-Chief of Sarawak Tribune. However, the views expressed here are his own and do not necessarily reflect those of Sarawak Tribune. He can be reached at drnagrace@gmail.com.
