Graduate pay must reflect skills, not location, says Ramanan


SUNGAI BULOH: Graduate starting salaries must be based on qualifications and skill levels rather than geographical location to ensure basic fairness in the workforce, says Human Resources Minister Datuk Seri R. Ramanan.

Rejecting regional wage disparities for skilled professionals, Ramanan said that employees performing the same roles after years of study deserve equal recognition regardless of where they are stationed.

“When it comes to graduates, we must ensure fairness,” Ramanan told reporters after officiating the Program Madani Kita and attending a community town hall in Kota Damansara on Saturday (Oct 17).

“Consider doctors, for example. A doctor in Kuala Lumpur and a doctor in Terengganu both save lives. We cannot place different values on human life based on location.”

Illustrating the issue through corporate roles, he questioned the rationale behind location-based pay cuts for identical qualifications.

“How can I say that someone working in Kuala Lumpur should earn RM4,000 as a finance manager, while someone doing the exact same job in Perlis or Terengganu earns only RM2,500? I cannot do that. You have worked hard, studied hard, obtained your qualifications, and developed your skills. These achievements should be recognised,” he said.

The Minister’s remarks follow Prime Minister Datuk Seri Anwar Ibrahim’s Budget 2027 announcement on Oct 9, which proposed a benchmark minimum monthly starting salary of RM2,500 for graduates and semi-skilled workers, alongside an increase in the national minimum wage from RM1,700 to RM2,000 effective June 2027.

Ramanan says that the principle of wage fairness applies equally to Technical and Vocational Education and Training (TVET) graduates, pushing back against perceptions that vocational trainees struggle to secure jobs.

He highlighted that the Department of Manpower currently oversees 33 campuses and three satellite campuses nationwide, training approximately 91,000 individuals in practical skills.

“Previously, the employment rate among our trainees was 95.5%. During yesterday’s post-Cabinet briefing, I was informed that the figure had increased further,” Ramanan disclosed. “What impressed me even more was the employer satisfaction rate of 97.2%. These are actual data-driven figures.”

“Workers who acquire these skills should receive appropriate salaries regardless of where they work,” he added.

To further enhance TVET graduate employability and wage prospects, the Ministry is expanding international exposure through strategic regional partnerships.

Following recent bilateral visits to Thailand and Singapore, Malaysia has established an understanding to launch cross-border internship programs tied directly to employment opportunities, including a partnership with Singapore’s Institute of Technical Education (ITE).

Under the proposed model, participating companies with specific skill requirements can offer candidates temporary employment paired with training at Malaysian technical institutions. Upon completion, trainees can be absorbed into permanent roles with salaries scaled to their acquired skills.

“We are planning these additional initiatives to strengthen the link between training and employment,” Ramanan said. “Therefore, claims that TVET graduates generally cannot find jobs simply do not reflect the reality of our employment figures.”

 

 

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R. Ramanan , Graduate , Pay , Human Resources

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