Despite investing years into higher education, many young Malaysians are entering the workforce only to find themselves stuck in low-paying jobs with little to no room for savings, investment, or upward mobility.
A recent study titled The 'Gaji Cukup Makan' Economy: When Higher Education Becomes an Economic Risk, part of the Malaysia Labour Market Insight Series, reveals a harsh reality: more than 65% of degree holders in Malaysia earn less than RM3,000 a month.
Photo via Human Resources Online
Worse still, over 70% of graduates are working in semi-skilled or low-skilled sectors, far below the expectations tied to their qualifications. According to Dr Mohd Yusof Saari, the report’s lead author, this points to a deeper structural crisis where higher education no longer guarantees a meaningful return.
This challenges the often-cited graduate employability rate of over 80 percent, which can be misleading. This is because it includes any form of employment, without measuring whether the job matches the graduate’s skills or offers a sustainable wage.
Dr Mohd Yusof further explains that the mismatch between academic qualifications and actual job requirements is worsening the return on investment in education. And while graduate underemployment happens even in developed countries, Malaysia’s low wage levels make the problem more severe.
Graduates working in roles beneath their qualifications are especially vulnerable. They often lack job security, financial growth, and access to better opportunities. For many from low- or middle-income families, this discouraging reality might even deter them from pursuing further studies altogether.
The report also highlights several root causes behind this crisis. These include sluggish wage growth, poor pre-employment preparation, and a weak demand for skilled labour from the private sector. Together, these factors have flattened income trajectories, meaning graduates often find themselves earning just as much or sometimes less than non-graduates, especially at the beginning of their careers.
Photo via The Star
This publication, developed by Future Studies Berhad through its Centre for Labour Market Futures (EU-ERA), aims to provide insights that can help policymakers, industry players, and the public navigate Malaysia’s changing economic landscape.
So Malaysians, we know you have the brains and the drive, but to truly shine on an international stage, we need an economy that values your worth just as much.
