What value is a varsity degree today?

Published on: Sunday, August 11, 2024

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It was a given in the past that obtaining a university degree was the path to success and prosperity. Is that still the case for Gen Z Malaysians?

Many academics and higher education experts still believe that a university degree acts as an insurance policy against unemployment, better opportunities to become homeowners, and improved job and earning prospects, just to name a few benefits.

In recent years, however, the cost-of-living crisis, mounting student debt, and changing job requirements in some industries have had students and graduates questioning whether it is still worth going to university.

Some industries don’t even require a degree, like manufacturing, construction and hospitality (which often pay reasonably well and see steady demand), let alone employment opportunities generated by the Internet and social media.

An article on Aug 4, 2024 in The Guardian newspaper (UK) reported that many British graduates who are earning moderate salaries and face unaffordable student loan repayments are leaving their jobs, turning down promotions in sectors plagued by staff shortages (such as teaching and healthcare), and generally putting off trying to progress in their careers.

This has made buying a house much harder or impossible, which has in turn affected their mental health and plans to start a family. Many are questioning whether it was worth getting student loans in order to obtain a university degree.

The question is whether a fresh graduate’s salary is sufficient to cover the cost-of-living crisis in Malaysia.

On average, a fresh graduate in Malaysia earns around RM2,500 to RM3,000 per month.

Thirty years ago, the average monthly salary of a fresh graduate was around RM1,500 to RM2,000.

This was prior to the Asian Financial Crisis in 1997 and the devaluation of the Malaysian ringgit.

For example, in 1994, one Singapore dollar was around RM1.70. Now, it has reached RM3.50.

Prices in Malaysia have tripled or even quadrupled in the past three decades, but salaries, especially for fresh graduates, have not.

In real terms, they have probably stagnated or even regressed.

It was a given in the past that obtaining a university degree was the path to success and prosperity. Is that still the case for Gen Z Malaysians?

CKL

The views expressed here are the views of the writer and do not necessarily reflect those of the Daily Express.

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