Highly skilled TVET graduates may earn premium salaries - MEF

KUALA LUMPUR - Highly skilled Technical and Vocational Education and Training (TVET) graduates could secure higher salaries based on their level of expertise, productivity and industry needs, the Malaysian Employers Federation (MEF) said.

MEF president Datuk Dr Syed Hussain Syed Husman said salary levels are not determined solely by academic qualifications, but by the productivity value an employee can offer to an employer.

He said employers, especially multinational companies, government-linked companies (GLCs) and technology firms are willing to offer premium salaries for advanced technical skills, such as artificial intelligence (AI) and machine learning engineering, cybersecurity and cryptology, data engineering, and renewable energy and smart grid systems.

"However, this willingness hinges on several key factor, including the marketability of skills, talent shortages, productivity, impact on business performance and market benchmarks, as well as whether graduates’ skills truly match industry needs rather than just holding training certificates,” he said.

At the same time, Syed Hussain said the Malaysian job market is still in a transitional phase, with premium salaries usually offered only in more technologically mature sectors.

Therefore, he said the MEF welcomes the government’s move to ensure better pay for highly skilled TVET graduates in line with the future economic direction.

Prime Minister Datuk Seri Anwar Ibrahim, when officiating the National TVET Day 2026 celebration last Saturday, ordered all government training and research institutions to provide training programmes in emerging fields for selected TVET students beginning July to further enhance their skills.

Anwar said at least 50 to 100 TVET students at each selected institution would be given early training opportunities in emerging and high-technology fields such as AI and cryptology.

The Prime Minister said the move could raise the market value of TVET graduates and potentially surpass that of bachelor’s degree holders, enabling them to earn higher salaries.

Echoing MEF’s view, senior fellow and director of the Economic Studies Programme at the Jeffrey Cheah Institute on Southeast Asia, Sunway University, Prof Dr Yeah Kim Leng said Malaysia must go beyond academic qualifications alone in assessing TVET graduates.

He said TVET curricula in Malaysia are already designed with direct industry input, featuring immersive learning and structured on-the-job training in collaboration with industry partners, enabling graduates to "hit the ground running” and contribute immediately to business growth, innovation and productivity.

Yeah who is also the Malaysian Economic Association (MEA) president said compensation for skilled TVET graduates should reflect their actual contribution to employers, particularly when they consistently demonstrate strong workplace performance.

"When graduates consistently demonstrate such performance, it is only logical that their compensation, including higher salaries, rewards and incentives, reflects their real-world value, not merely their paper qualifications,” he said.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ability of TVET graduates to earn higher salaries depends on the labour market, as well as skill levels and industry dynamics.

"Usually, the more complex the tasks in an industry, the higher the salary scale offered,” he said.

He said the government’s efforts to strengthen TVET are crucial in developing a highly skilled workforce for fields such as AI and energy transition, thus supporting the country’s economic development. - BERNAMA