Sivakumar says the market should decide the salary scheme for new graduates.
BUSINESS associations are against the proposal to offer a starting salary of RM3,000 to technical and vocational education and training (TVET) graduates.
Johor South Small and Medium Enterprise Association advisor Teh Kee Sin said that it would be unfair to diploma and degree holders if employers started paying RM3,000 to TVET graduates.
He said this was because the starting salary for diploma and degree holders was lower than the RM3,000 proposed by the Federal Government.
“We need to strike a balance and at the same time, be fair to our diploma and degree graduates.
“While technically trained workers are important for the country’s industrialisation, Malaysia still has a long way to go before it can achieve developed nation status,’’ Teh said when contacted.
Teh says starting salary for diploma and degree holders lower than RM3,000.He said that unlike countries in Europe such as Germany, where 60% of the workforce was TVET trained, in Malaysia it was less than 30%.
“Even countries like Singapore, Taiwan, Japan and South Korea are emphasising and giving priority to industrial training, unlike us.
“Malaysia’s technical training is still in its infancy state.
“Most parents prefer that their children take up degree courses,” he said.
Teh said a majority of Malaysian parents still associated TVET training with those who did not excel academically in schools and so industrial training was their second choice.
“The government also has to really focus on TVET training and modules and ensure they are free from political interference,” he added.
Johor Indian Business Association president P. Sivakumar said the entire salary system should be reviewed if the country wanted to see more locals in technical-based jobs.
He said industrial training was important for the country and not only for TVET graduates, if Malaysia wanted to become a high-income nation.
“This can only be achieved if our government is able to attract more high-tech and capital-intensive investments and reduce our dependency on labour-intensive activities.
“By reducing labour-intensive investments, Malaysia will reduce the need to hire foreign workers in the future, giving job opportunities to locals.
“Diploma and degree graduates also deserve a better starting salary, and not just TVET graduates,’’ said Sivakumar.
He said if the government were to impose the RM3,000 starting salary for TVET graduates on employers, it would send the wrong signal to diploma and degree holders.
“Let the market decide the salary scheme for new entrants, including TVET graduates.
“There shouldn’t be a ruling or law that requires employers to offer a certain quantum for starting salary,” he said.
Sivakumar also urged the government to offer incentives such as tax rebates to employers to provide reskilling and upskilling opportunities for existing employees.
It was reported that Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi had called on all employers to offer a starting salary of RM3,000 to TVET graduates.
Ahmad Zahid, who is also the National TVET Council chairman, said the proposed starting salary was appropriate as TVET graduates were workers who had undergone skills courses.
