PETALING JAYA: Let the government bear the difference between a RM3,000 minimum graduate’s wage and the average wage if it goes ahead with the idea, says Datuk Seri Dr Wee Ka Siong.
The Ayer Hitam MP said if the current average minimum wage for graduates was RM2,300 for example, the government should foot the remaining RM700 to be fair to presently working graduates.
"Is the government really financially prepared to bear the billions of ringgit for this purpose?" he questioned in a Tiktok video on Saturday (Mar 22).
"Just making Khazanah Nasional and other government-linked companies dispose of assets acquired during Barisan Nasional’s time and taking Petronas’s dividends are not long-term solutions," added Dr Wee.
Dr Wee said the government must heed its own Fiscal Outlook 2024 report published by the Finance Ministry to reintroduce the GST which would do more to strengthen the economy and reduce tax evasion.
In the video, he further said that if a minimum wage for graduates was introduced, it must factor in locality.
"We cannot shoehorn RM3,000 minimum all over Malaysia when there are places with lower cost of living," he said, giving the example that Shah Alam, Selangor was vastly different from Jeli, Kelantan.
Lastly, he said that there should not be discrimination against existing experienced skilled workers with the introduction of any minimum wage for graduates.
"We have to be fair to senior workers who do not have degrees," he said.
"If you raise the minimum wage, then also raise the wages of all those skilled and experienced people to commensurate with their years of service."
Implementing a RM3,000 minimum graduate’s wage leaves many small businesses with two options, he said. Employers can either raise all of their graduate workers’ monthly wages to RM3,000 each or retrench a few degree holders to save costs and halt hiring.
The first option means higher cost of doing business and the second leads to higher unemployment, he said.
"Not to mention questions of fairness for existing employees with seniority and experience. They are usually more competent in spite of lacking a tertiary degree but still earn less than RM3,000."
"Of course I want the best for Malaysian graduates," he said.
"(But) everyone knows that the cost of living today is far higher compared to times before 2018. New graduates aren’t the only group facing difficulties."
Dr Wee made the comments after Minister of Higher Education Datuk Seri Dr Zambry Abd Kadir last week said that the government was mulling setting minimum wage for university graduates at RM3,000.
He said that a White Paper would be presented to Cabinet following discussions between the Ministry of Economy and the Ministry of Human Resources.
In Parliament last week, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi also told the media that TVET graduates should receive "premium salaries" based on their training categories rather than the current minimum wage of RM1,500.
Ahmad Zahid then said that this would break a prevailing dislike for TVET jobs among youth and parents.
The Rural and Regional Development Minister said the National TVET Policy, to be launched June 2, will also look into the salary structure.
