2027 Budget Must Tackle Graduate Wage Crisis, Says Former Deputy Minister

P Kamalanathan has urged policymakers to prioritise graduate employment and wages in the 2027 budget, citing the ongoing challenge of low starting salaries in the Malaysian job market. The former deputy minister outlined a three-pronged approach to tackle the issue, beginning with wage subsidy schemes directed at small and medium enterprises to encourage higher graduate hiring and compensation.

Beyond direct wage support, Kamalanathan proposed government-funded artificial intelligence tools aimed at equipping students with competitive digital skills before entering the workforce. This initiative seeks to bridge the gap between academic training and industry demands, potentially improving graduate prospects and earning potential upon employment.

The third pillar of his proposal involves matching grants for community education funds, designed to expand vocational and skills training opportunities outside traditional university pathways. Such funding mechanisms could provide alternative qualification routes and reduce dependence on conventional degree programmes, ultimately creating a more diverse and resilient skilled workforce.

The recommendations align with growing concerns among economists and industry observers about graduate underemployment in Malaysia, where many degree-holders accept positions below their qualification levels. Budget deliberations in the coming months are expected to feature renewed debate over labour market policies and youth employment strategies across the region's second-largest economy.