The proposed RM2,500 minimum wage for graduates under the 2027 Budget—slated for June next year—could be feasible. But if badly handled, it could be counter-productive.
The Malaysian Employers Federation, while agreeable to the new wage structure, suggested a thorough study before making it mandatory. The Human Resources Ministry is preparing basic salary guidelines.
So, how realistic is this RM2,500 minimum wage? At a glance, it is well-suited for technical and professional roles, such as engineering, semiconductors, banking and accounting, as well as information technology fields like artificial intelligence, software programming and data analytics.
Larger employers could accommodate this rate for their management trainee programmes. It is harder though, for small businesses, nonprofit organisations and cash-conscious start-ups.
