Malaysian firms still underpaying TVET graduates despite wage hikes

KUALA LUMPUR — Malaysian companies are still paying technical and vocational education and training (TVET) graduates below-market rates despite the government's push to increase minimum wages, according to concerns raised by industry observers.

The reluctance to offer competitive compensation to local vocational graduates remains a persistent challenge, with some employers continuing to benchmark salaries against foreign worker rates rather than recognizing the skills and qualifications of domestic talent.

The issue highlights a broader tension in Malaysia's labour market, where TVET-trained workers—who have completed specialized technical training—are not always valued at rates commensurate with their expertise. This disparity occurs even as the country aims to boost vocational education and reduce dependence on foreign workers across various sectors.

The persistence of below-par wages for TVET graduates may discourage Malaysian youth from pursuing vocational qualifications, potentially undermining efforts to develop a skilled domestic workforce. Industry stakeholders have called for greater recognition of vocational credentials and more consistent adherence to wage standards across employers.

The matter underscores the need for coordinated efforts between government, employers, and training institutions to ensure that vocational pathways offer viable career prospects and fair remuneration for Malaysia's technical workforce.