KUCHING: Government intervention in the labour market must be minimal as most employers are aware that wages are determined by demand and supply.
Sarawak Business Federation (SBF) secretary-general Jonathan Chai said it is necessary to note that most fresh graduates would have to go through a process of re-skilling to adapt themselves to a new job, especially those who are entering the workforce for the first time.
Speaking to New Sarawak Tribune today, he said the majority of the employers or companies would not prepared to offer fresh graduates a high salary from the start as any wage adjustment will commensurate with performance and attitude.
“I will not object to the government’s recent proposal, suggesting employers in both the public and private sectors should display the salary range offered in job advertisements.
“But, I am skeptical that such a measure would actually help the graduates to make informed decisions and address the issue of declining wages among degree holders to minimum levels,” he said.
Chai said there are many factors which led to the low threshold of salaries for fresh graduates and the issue is very much determined by market forces.
“If the competition is stiff in the labour market and the economy is going strong, I don’t think any employer would be unwilling or reluctant to offer a higher pay for their employees.
“There must be a change in the fundamentals of our economy to facilitate the growth of income of our people, particularly the working class.
“We are currently facing the “middle-income” trap with no potential to uplift our economy to a higher level. We can’t stay on with labour-intensive industries anymore if we need to progress,” he said.
Chai said more resources should be channelled to carry out research and development with significant focus on digital transformation and productivity to improve the economic performance.
In addition, he said, there must be a conscientious effort and commitment to carry out institutional reforms and eradicate corruption, which will increase foreign investments, create more high-paying jobs for the locals, especially fresh graduates, and strengthen the ringgit.
Recently, the government proposed that employers in both the public and private sectors display the salary range offered in job advertisements to help graduates easily make informed decisions and address the issue of declining wages among degree holders to minimum levels.
Director of the MBA programme at Putra Business School (PBS), Associate Professor Dr. Ahmed Razman Abdul Latiff, suggested that this step would provide transparency, allowing graduates to compare job offers before applying.
He also suggested the creation of a dedicated online portal that will display the types of positions and corresponding average salary rates.
The portal, Ahmed Razman said, would serve as a reference for graduates to gauge suitable salary rates for the positions they are applying for upon entering the workforce.
“We want to avoid situations where employers take advantage and offer low salaries to graduates,” he added.
