When settling for less is common practice

It’s frustrating to see my hard work directly contributing to the company’s success, yet my salary remains stagnant. A low salary inhibits my ability to save for the future and build a stable financial foundation. – FsmStatistics.Fm

I was intrigued recently when reading an online discussion comparing the basic salary for an entry-level position in Sarawak and Singapore.

On the surface, the starting pay of 3,500 SG$ in Singapore might hint at a more lavish lifestyle for the worker. That is probably because, in MYR terms, it is about RM12,000.

Now, earning somewhere in the ballpark of RM12,000 in Malaysia, depending on the commitment level, most would say is quite comfortable.

This is where one can indulge in creature comforts and afford the amenities that might be out of reach for a large section of the population. But as we know too well, and as Malaysians living and working in Singapore would tell you, living a life of luxury is far from the truth.

This is because of the higher living costs that eat into their monthly pay. In the end, it is more or less the same as their counterparts who are earning less, and working in Malaysia.

But then again, the discussion takes a significant turn when the amount that is compared to the 3,500 SG$ in Singapore is about RM2,000 in Sarawak.

Believe it or not, some companies still offer a starting pay of RM2,000 (or even lower) for a degree holder here.

It is not unheard of. It is not only small companies or start-ups that are guilty of this, but larger companies too.

I remember about five years ago when I was a fresh graduate seeking to land my first job in the field of information technology; I attended an interview at a large electronics manufacturing company. After undergoing a round of examinations and interviews, ultimately, I did not get that job.

A close friend of mine, however, was accepted by the company and was offered a salary of RM2,000 flat.

For some context, that amount is below the industry average of RM2,500 to RM2,800 for a fresh graduate from this particular background, at that time.

But then again, when it comes to it, being employed with a smaller pay is better than being unemployed with no pay.

So, I get it, I get why fresh graduates make that choice even though the salary that is offered undercuts the competition. “Sikhal pok, kelak slow-slow gaji nait (It is okay, the salary will be raised slowly)”. I remember this phrase from my friend. 

It is definitely not the most desirable outcome but then again, that is and has always been the case.

As much as fresh graduates would push for a higher starting salary, closer to the industry average pay, mind you, nothing outrageous, they know that there’s nothing they can do when they are offered lower pay.

They would oblige and settle for less knowing that their peers who are working elsewhere, particularly those migrating to Malaya, are paid significantly higher by the companies over there.

However, I don’t think this is particularly a Sarawak-based issue, there must be companies in Malaya that are guilty of doing the same.

Ultimately, the adage of “why pay more when you can pay less” extends beyond grocery shopping and into employee remuneration.

Even more so during a time when the economy is in shambles such as now in a post-pandemic economy, but then again, even when the economy is doing well, the practice is the same.

There’s a valid concern about this. The government in formulating stimulus packages has to work with a set of baseline figures for how much the people are earning. When the baseline is lower than the expected standard, it means that more people are dependent on assistance and this would incur more spending. I believe the graduates and those working on a lower salary do not want charity, they just want to get a fair remuneration — which would uplift their living standards.

The taxpayers too, do not expect that their hard-earned money would go into funding assistance schemes where the recipients are not particularly the needy, but rather those who are underpaid. That is why I am in support of a progressive wage policy. This would in some way, address the wealth imbalance even more so than any future investments in infrastructure development and the economy. Employers should not take advantage of the ‘tidak apa’ and ‘cukup la’ attitude of their future recruits. Fairer wages are the way to go to produce high-skilled and competent professionals as well as a capable workforce. When you pay peanuts, you get monkeys!