University Graduates Should Be Getting RM7k to RM8k, Says Former Bank Negara Governor
Former Bank Negara governor Muhammad Ibrahim said the RM2,000 to RM3,000 fresh graduates are getting now is just a little more than the RM1,300 he earned in 1984.
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Everyone knows our salaries have stayed stagnant and low for years and the recent minimum salary raise to RM1,700 is a temporary balm.
Former Bank Negara governor Tan Sri Muhammad Ibrahim said the salaries of university graduates should be within the RM7,000 to RM8,000 range, when adjusted to a 5% annual inflation rate.
He remarked that fresh graduates are earning between RM2,000 and RM3,000 currently (if they’re lucky to secure such jobs with that pay).
He said Malaysians’ real wages have declined nearly threefold over the past four decades, noting that the RM2,000 to RM3,000 today is just a little more than the RM1,300 he earned in 1984.
Muhammad Ibrahim said the salary range between RM7,000 and RM8,000 equates to purchasing power of RM300 to RM400 in the 1980s.
READ MORE: Woman Laments Husband’s RM7,000 Salary Not Enough For Kids, Vacations
READ MORE: [Video] Pendapat Perlu Gaji RM7,000 Ke Atas Untuk Tinggal Di KL Cetus Perdebatan Di Media Sosial
Netizens found this piece of news unsurprising with a user saying the salaries will not improve since most companies are penny pinchers.
Another user wondered how those living in the Klang Valley could get by with at least RM3,000 a month, adding that it’s no wonder so many are taking up part time jobs to cover costs.
Of course our salary sucks when our bosses are penny pinchers.
— Common people🇲🇾 (@dudeinhis20s) May 5, 2025
It’s surprising how many people can still get by on just RM2-3K a month, especially those living in the Klang Valley. But then again, many of us are taking on part-time jobs just to make ends meet…
— Ɐ M I R (@amir_afiq) May 5, 2025
Lol, what's new
— ChoppyChopChop (@MrSnowF1ake) May 5, 2025
It’s not that long ago the proposal to raise the minimum wage to RM1,500 was met with pushbacks. The Malaysian Employers Federation (MEF) at the time said businesses weren’t ready and were not in the position to implement the new wages due to losses suffered during the Covid-19 pandemic.
MEF argued that the salary raise will push up the costs of goods and services and operation costs in medium and small companies.
MEF eventually supported the move to raise minimum wages to RM1,700 early this year, citing that the raise will enable employers to attract and retain talent which will lead to better economic growth.
READ MORE: Can You Budget With RM1,700? It’s Tough But Doable
What’s the solution to improve low salaries?
Muhammad Ibrahim said Malaysians have been stuck in the middle-income trap for years. He shared that there needs to be a serious overhaul of Malaysia’s education system and economic structure.
He added that the heavy reliance on low-skilled foreign workers, the failure of generating high-quality jobs, and an outdated education and skills training system all lend to the growing problem.
The problem is further compounded when Malaysians move abroad for better pay despite doing manual labour jobs there.
If Malaysia fails to transform its economic structure, we risk becoming a net exporter of labour rather than talent. One day, our children could end up working as domestic helpers abroad — and I wouldn’t be surprised if it happens.
Former Bank Negara governor Muhammad Ibrahim
The work to overhaul will be tough but it’s possible. He mentioned countries like China, Taiwan, South Korea, and Japan were once behind Malaysia in per capita income in the 1960s. These countries now far surpassed Malaysia after decades of targeted growth.
He added that the country shouldn’t benchmark itself against weaker Asean economies but aim for high-performing economies and focus on creating quality jobs.
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