Psm Govt Must Fix Stagnating Graduate Salaries

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PSM has called on the federal government to take urgent action in addressing wage stagnation among fresh graduates, warning that the issue reflects a broader failure of the neoliberal economic model.
Referring to findings from the PNB Research Institute (PNBRI), the party highlighted that the starting salary for first-degree holders now is nearly equivalent to that of SPM holders in 2022, compared to being 2.7 times higher in 1997.
“This is not just a statistic but a clear sign that the neoliberal economic system no longer works for graduates and the youth,” said PSM central committee member Gandipan Nantha Gopalan in a statement today.
He stressed that the government must view the matter as a “serious warning.”
“What is the point of Malaysians striving to attain higher education if their salaries are not enough to sustain a decent life? Where is the economic well-being that’s often preached in official speeches?” he questioned.
PSM’s Gandipan Nantha GopalanNow that the internal election of the ruling coalition are over, Gandipan said, there is no excuse for Putrajaya to delay reforms aimed at job protection and economic restructuring.
“It’s time for action, not more political rhetoric,” he added.
What’s with the snail’s pace?
Gandipan also criticised the slow implementation of the progressive wage policy, urging the government to reveal how many companies have signed on and how many graduates have benefited.
“Only with this data can we properly evaluate and improve existing policies,” he said.
The progressive wage policy was launched as a voluntary scheme to raise the wages of Malaysian employees through productivity-linked incentives.
Targeting micro, small and medium enterprises, the first 1,000 qualifying firms that registered under the pilot project from June 1 to Aug 31 last year were allocated government support to raise the wages for their employees.
Specifically, the government has offered to subsidise a company’s cost of raising salaries for employees earning between RM1,500 and RM4,999 to meet the progressive wage policy guideline.
Prime Minister Anwar Ibrahim, who is also finance minister, announced a government allocation of RM200 million under Budget 2025 to support the full implementation of the policy this year, which will benefit 50,000 workers.
Job guarantee scheme
As a long-term structural solution, PSM reiterated its call for the implementation of a national job guarantee scheme, under which the government would act as the employer of last resort to provide permanent, living-wage jobs with social protection and economic stability.
Among the proposed job sectors are green industries, food security, healthcare, education, social work, heritage conservation, and anti-corruption monitoring.
PSM also advocated for reducing the working week to 35 hours to create more job opportunities and for government-linked companies (GLCs) to play a proactive role in employment creation rather than pursuing profit alone.
“If higher education no longer guarantees economic stability, the younger generation will be increasingly disillusioned, burdened with debt, and lose faith in the country. That’s a dangerous trajectory.
“PSM will continue pushing for the job guarantee scheme as a long-term solution to build a just and resilient people’s economy,” he added.
The party also proposed a national dialogue involving labour movements, student groups and progressive parties to develop an urgent action plan to overhaul the employment and income systems. - Mkini

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