Yes, university degrees are still important. However, it is important for Malaysians to continuously reevaluate whether university degrees are still important because the rules of employment change based on technological advancement.
The fact that 1 in 5 fresh graduates in Malaysia still struggles with unemployment after investing a high amount of money and time obtaining a Bachelor’s Degree is also a very worrying trend. The number of unemployed graduates has also risen by 22.5% from 165,200 in 2019 to 202,400 in 2020.
The total unemployment rate among youth with tertiary education is also consistently higher than other education levels. The unemployment level for graduates with Tertiary Education is 3.9%, while High school graduates 3.3%, Primary school graduates 1.7%, and 2.7% amongst Malaysians with no formal education.
However, despite these bleak statistics, I would argue that university degrees are still very important in Malaysia. My reasons are as follows:
1. Bachelor’s Degree still holds tremendous value
Despite all the new technologies that have revolutionized many industries, many business owners still value university graduates compared to people without them. The reason for this is that degree acts as a filter for businesses that receive many applications and do not have the resources to sift through all of the resumes and interview all of the candidates. Most often than not, without a bachelor’s degree, you will not even be given the chance to prove yourself in an interview as you are filtered due to your lack of a degree.
2. Employment in professional services
Jobs in professional services such as accountants, lawyers, and doctors have strict qualifications requirements so if you would like to have a career in professional services it is best to first check what the education pathway is.
3. Career progression
Albeit having enough working experience can normally take you very far in your career, there are cases whereby some people experience a glass ceiling in their career due to their lack of educational qualifications. Having a bachelor’s degree or higher educational qualification can be an edge when you are competing with others in your company for a promotion.
4. Higher salary
The employment statistics in Malaysia show a potential correlation between educational attainment and salary levels. Based on the statistics provided by the Department of Statistics Malaysia the median salary for tertiary graduates are the highest at RM3,500. The median salary for high school graduates is only RM1,630, for primary school graduates it is RM1,560, and for people with no formal education, it is as low as RM1,237.
Albeit bachelor’s degrees are important and in most cases they will be able to pay for themselves, there are some disclaimers to that notion. Firstly, some private universities in Malaysia do charge an exorbitant amount of fees so you must select carefully. Secondly, not all bachelor’s degrees are created equal so take into consideration whether a bachelor’s degree is highly sought after by employers before making a decision.
Hope these tips are helpful to you and do not forget to repay your tuition fees if you are getting an education loan. There is a total of RM39 Billion of debts that are currently outstanding to PTPTN and based on the latest reports 51% of borrowers are not making the required payments that are owed. This situation is not sustainable for PTPTN and they may face difficulty in providing new loans if the old ones are continued to be unpaid.