One of the most common questions that fresh graduates ask would be “How much is the fresh graduate salary in Malaysia?”. Just graduated from College / University and am unsure of what starting salaries are like in Malaysia? Let’s get right into it.
An Overview of Fresh Graduate Salary in Malaysia
1. Average Base Salary
The average fresh graduate salary in Malaysia is approximately RM 2,412 per month. In terms of a salary range, fresh graduates can expect a salary of between RM 1,949 to RM 2,836 per month.
The basic salary depends on multiple factors such as academic qualification(s) and results, the technical skill level required, industry practices and more. Your interview performances will also play a part in your starting salary.
In recent years, internship allowances have also risen to an average of RM 1,000 per month. Setting this expectation can prevent you from getting underpaid and overworked.
2. Highest Paying Cities
Here are the highest paying cities in Malaysia for fresh graduates (per month):
- Kuala Lumpur – RM 2745
- Petaling Jaya – RM 2618
- Subang Jaya & Johor Bahru – RM 2559
Although major cities offer higher starting salaries, be mindful that the cost of living is higher as well. However, major cities do provide more opportunities in terms of the number of jobs available and wider career variety.
3. Highest and Lowest Fresh Graduate Salary in Malaysia
If you think that the fresh graduate salary in Malaysia is generally low, you are not wrong. However, the main reason why Malaysian fresh graduates are unable to secure high-paying jobs is due to the lack of career-readiness and skills.
High-paying jobs usually refer to jobs in the Computer Science, Professional Services (Lawyers, Engineers, Doctors), and E-commerce sectors. These jobs require specific skills and qualifications compared to general and clerical jobs.
Regardless of the type of industry, if your expertise and skillset are highly sought after, you will receive a higher starting pay. For example, Computer Science and Engineering graduates usually receive higher pay due to their technical skills and problem-solving capabilities.
Meanwhile, if your preferred job is easily replaceable by either physical machines or digitalisation & automation, your starting salary will most likely be lower. Hence, there is a need to constantly upgrade your skills and expertise in order to be irreplaceable.
How Much Salary Do Fresh Graduates Need?
The answer varies for each and every person reading this article. It depends on:
1. Living costs
The cost of living varies across cities and suburbs. A RM 3000 salary may not be sufficient in Kuala Lumpur but considered high in Bagan Datoh, Perak. Be sure to factor in prices for grocery, rent and entertainment in your starting salary.
2. Spending habits
In short, greater expenses require higher salaries. There are no right or wrong choices, but remember that no matter how much your starting salary is, poor budgeting and financial decisions will lead to issues later on.
3. Family dependency
If you are the sole breadwinner in your family and have multiple financial commitments, a higher starting salary is needed. Meanwhile, if you are living with your family and are well taken care of, you may see having higher salaries as a bonus instead of a must-have.
4. Career preferences
Different job positions, companies and industries have different starting salaries. Being a recruiter or property agent may provide you with a higher starting salary (commission included) but it may not be sustainable in the future due to fading interest or even health reasons.
If you have a specific interest or skills, understand and adapt to the industry standards at first. Then, leverage your skills and experiences to negotiate for a better salary in the future when you are a specialist in your industry.
Is The Starting Salary Really Important?
During the interview sessions, you may come across statements such as “starting pay is not important because you are still young and fresh”, or “you need to be grateful” or “you should not be picky”.
Irrespective of what most senior executives will say, your starting salary is one of the most important aspects to consider when choosing your first job. Your starting salary will most likely determine your lifetime salary, here’s how:
Example 1: Your salary starts at RM 2000. You receive a 5% increment the following year = RM 2100. You then pursue a job in a different company and receive a 20% salary increment = RM 2520.
Example 2: Your salary starts at RM 3000. You receive a 5% increment the following year = RM 3150. You then pursue a job in a different company and receive a 20% salary increment = RM 3780.
The difference between both examples is a whopping RM 15,120 a year!
The Final Verdict
Even though the pandemic has adversely affected fresh graduate salaries in most industries, don’t be discouraged as research conducted by Talentbank showed that over 70% of companies still intend to hire fresh graduates in 2021.
When it comes to hiring fresh graduates, over 90% of hiring managers emphasised good qualities over academic results, such as being versatile, proactive and adaptable. Be sure to highlight your skills and personalities during your interviews to negotiate for a higher starting salary.
Ready for your first full-time job? Here’s our guide on your ultimate elevator pitch and important things to bring to your job interviews.
Read the Chinese version here: 马来西亚毕业生薪资指南
