Fresh graduates in Singapore are now earning a higher starting salary, with the median salary reaching SGD 4,500 (approximately RM14,800), according to the 2024 Graduate Employment Survey.
This extensive poll of 12,500 graduates from five major public universities also revealed that some disciplines command even higher figures, such as Information and Digital Technology (SGD 5,600, about RM18,400) and Engineering (SGD 4,650, about RM15,300). Business graduates reported a median salary of SGD 4,400 (about RM14,500), underscoring Singapore’s reputation for competitive starting salaries in high-demand sectors.
An Evolving Singaporean Market
In Singapore, the full-time employment rate for fresh graduates recently fell to 79.5%, down from 84.1% the previous year, marking the second time since 2018 that it has dropped below 80%. Some observers attribute this decline to increased competition, while others point to changes in hiring practices.
Whatever the case, about 1.6% of new grads now opt for freelancing, and 6% have taken on part-time or contract positions, suggesting a shift in how fresh graduates are approaching the job market. While many do succeed in landing lucrative positions, the path can be highly competitive, and the cost of living, particularly for housing remains a significant concern.
Malaysia’s Overqualification Challenge
Meanwhile, Malaysian fresh graduates face a different issue: overqualification for the positions they end up occupying, with many earning below RM2,000 despite holding degrees.
According to the Khazanah Research Institute (KRI) report, Shifting Tides: Charting Career Progression of Malaysia’s Skilled Talents:
- 65.6% Underpaid: The majority of graduates earned a starting pay below RM2,000, and only 10.8% earned more than RM3,000.
- 48.6% Overqualification Rate: Nearly half of graduates were in roles beneath their qualifications.
- 43.4% in Matching Roles: Barely over two-fifths of graduates found positions aligned with their fields of study.
- 24.9% High-Skilled Jobs: Only a quarter of total jobs, including vacancies, were high-skilled in 2022, limiting immediate opportunities for well-qualified grads.
- Rise in Non-Standard Employment: Part-time, contract, and gig roles offer short-term relief but often come with lower pay and fewer benefits.
This data highlights how too many graduates in Malaysia have ended up in low- or semi-skilled jobs with subpar starting pay, all because there simply aren’t enough high-skilled roles available. Such circumstances not only hamper initial earning potential but can also derail long-term career progression.
When one’s academic background does not align with day-to-day responsibilities, opportunities for professional development can be limited. Overqualification not only suppresses early earning potential but also risks long-term stagnation if graduates remain stuck in positions that don’t utilize their skills. This challenge is further compounded by the fact that high-skilled roles have hovered at about a quarter of the overall job market for several years, according to KRI.
Deciding Where to Begin
Ultimately, the choice of whether to explore opportunities abroad or remain in Malaysia hinges on individual goals, risk tolerance, and lifestyle preferences. For some, the promise of higher pay and rapid career progression in Singapore outweighs the challenges of relocation and increased living expenses. For others, building a future at home offers greater security and the chance to grow at a more manageable pace. Whichever path you choose, adaptability and continuous learning are key to navigating today’s dynamic employment landscape.
Closing the wage disparity between Malaysia and Singapore will not happen overnight. Structural reforms, industry growth, and better alignment between education and employment sectors are necessary for meaningful change. Meanwhile, graduates must navigate this reality by making informed career choices and leveraging opportunities in emerging sectors.
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