World · Malaysia Bureau
Malaysian firms urged to pay TVET graduates fairly despite minimum wage hike
A government minister has expressed concern that some employers continue to pay qualified local TVET workers at rates equivalent to foreign workers, even after the minimum wage was raised to RM1,700.
LSN Malaysia ·
Despite the recent increase in Malaysia's minimum wage to RM1,700, some companies are still compensating locally-trained TVET (Technical and Vocational Education and Training) graduates at rates typically offered to foreign workers, according to a senior government official.
The concern was raised by a minister who highlighted that the wage disparity persists despite efforts to improve compensation for skilled local workers. The minimum wage hike was intended to ensure better remuneration for Malaysian workers, particularly those with vocational qualifications.
The issue underscores ongoing challenges in Malaysia's labour market, where employers sometimes undervalue local TVET-trained personnel compared to foreign counterparts. This practice potentially undermines the competitiveness of domestic talent and discourages investment in local vocational education programmes.
The minister's comments suggest the government may consider further measures to ensure employers comply with fair wage practices for qualified local workers. Industry observers have noted that proper compensation for TVET graduates is essential for attracting young Malaysians to technical and vocational careers, which are increasingly critical for the country's economic development.