Higher Starting Pay? What Should Our Children Major In For The Future?

Higher Starting Pay? What Should Our Children Major In For The Future?

When my daughter was entering Form 1, my wife asked me a very simple question.

RBT or ASK? Reka Bentuk dan Teknologi or Asas Sains Komputer?

I did what I normally do. I asked more questions.

Then I went online to read more. I also consulted a retired friend who was formerly a Senior Manager in Bank Negara Malaysia. She knows much more about the education system than I do, and interestingly, she also chose the computer science route for her own children.

Eventually, we chose ASK. The original reason was quite simple. If our children are interested and capable, perhaps Computer Science gives them more options in the future. But then I started thinking about something else.

What if we look at the starting salary?

Does choosing the “right” degree mean choosing the degree that gives the highest starting pay?

Maybe.

But I don’t think that is the full story.

WHAT is the “right” degree?

Let’s first look at what is happening in Malaysia.

According to the latest Department of Statistics Malaysia (DOSM) Graduates Statistics, Malaysia had 5.98 million graduates in 2024, and the graduate unemployment rate had fallen to 3.2%. More importantly, the median monthly salary for graduates was RM4,521, while degree holders had a median salary of RM5,724. 

That’s quite interesting. A degree still has value. But we should not interpret this as:

“Get any degree and you will earn RM5,724.”

No.

That is a median figure across degree holders. There will be graduates earning less. There will also be graduates earning much more. And this is where the choice of field, skills, university, industry, location and eventually work performance starts to matter.

In other words:

The degree matters. But what we do with the degree matters even more.

#1 – Starting pay matters, but don’t choose a career based only on it

I remember when I was younger, Engineering was one of those degrees that sounded very attractive.

Engineer. Wah…

Sounds professional. Sounds technical. Sounds like good money. Today, things have changed.

Computer Science, data, artificial intelligence, cybersecurity and other technology-related areas have become much more prominent. Engineering is still very much mainstream but there are also others which look very attractive.

And the interesting thing is that the jobs themselves are also changing. A child entering university in 2027 may graduate in 2031 or 2032.

So the question shouldn’t be:

“Which degree pays the most today?”

The better question is:

“Which skills will still be valuable when my child graduates?”

That’s a much harder question.

And nobody really knows the exact answer.

#2 – Look at where the jobs are going

The Ministry of Higher Education’s 2024 Graduate Tracer Study gives us some useful information.

Engineering, Manufacturing and Construction graduates had a 94.9% graduate employment rate.

Information and Communication Technologies came in at 93.7%.

Health and Welfare was 92.6%.

Natural Sciences, Mathematics and Statistics was 92.5%.

Business, Administration and Law was 92.2%. 

So yes, there are many fields with strong employment outcomes. And notice something. It isn’t just Computer Science. Engineering is still strong. Healthcare is strong.

Science and mathematics are strong.

Business is still strong.

This is why I wouldn’t tell my children:

“You MUST study Computer Science because that is where the money is.”

That would be too simplistic. A degree is not a lottery ticket.

#3 – But starting salary can give us a clue

DOSM’s data also shows something else that I find very interesting. Graduate salaries are rising.

The mean monthly salary of graduates increased from RM4,466 in 2020 to RM5,330 in 2024. 

But there is a huge difference between starting a career and eventually becoming experienced.

Graduates aged 24 and below had a median monthly salary of just RM2,031 in 2024.

For graduates aged 45 and above, the median was RM7,191. 

That tells us something very important.

Starting salary is only the starting point.

It is not the destination.

Imagine two graduates.

Graduate A starts at RM3,500.

Graduate B starts at RM4,500.

Sounds like Graduate B has won.

But what happens 10 years later?

If Graduate A learns quickly, takes on bigger responsibilities, develops leadership skills and moves into a higher-value role, while Graduate B remains comfortable doing exactly the same thing every year, the result could easily reverse.

That’s why I said in my original article:

Starting pay is important, but growth is much more critical.

I still believe that.

#4 – A high-paying degree does not create a high-paying person

Let’s imagine a very hardworking software engineer. He completes everything assigned to him.

Always on time. Never complains. Excellent technical skills. But he doesn’t communicate.

He doesn’t work well with others.

He doesn’t volunteer for anything beyond his job description.

He doesn’t understand the business.

He doesn’t want to lead.

Will he eventually become Head of Department?

Maybe… But I wouldn’t bet on it.

Because companies don’t promote people simply because they are technically good.

At some point, we need to:

Communicate.

Influence.

Solve problems.

Work with people.

Take ownership.

Lead.

And this becomes even more important as AI takes over more routine work.

#5 – AI changes the question completely

This is probably the biggest difference between the article I wrote originally and what I would say today.

Back then, we could ask:

“Which degree gives my child the best career?”

Today I would ask:

“Which degree gives my child a strong foundation to keep learning when the career changes?”

That’s different.

AI can already write.

It can analyse.

It can code.

It can summarise.

It can create presentations.

It can generate images.

So if our children’s entire value comes from doing tasks that AI can increasingly do, that’s a problem.

But if they know how to use AI to solve real problems, understand customers, communicate, make decisions and take responsibility, that’s different.

The skill isn’t simply:

“I know how to code.”

It becomes:

“I know what problem needs to be solved, and I know how to use technology to solve it.”

That’s much more valuable.

#6 – So what should our children actually study?

If my children asked me today, I would probably say:

Don’t choose a degree only because it has the highest starting salary.

Instead, look for the intersection of three things:

1. What are you reasonably good at?

If you hate mathematics, choosing a highly mathematical degree just because somebody says it pays well may not work.

2. What are you interested in?

You are potentially going to spend years studying this.

Then many more years working in related areas.

It helps if you don’t hate the subject.

3. Will society still need these skills?

This is where we should think about future demand.

Technology.

Engineering.

Healthcare.

Data.

Science.

Cybersecurity.

Education.

Business.

Finance.

Design.

Skilled technical work.

There are many possibilities.

The important thing is to understand why the field will remain valuable.

#7 – And please don’t underestimate communication

This is something I would emphasise to my children. Technical knowledge gets you into the game. But communication capability / competency / skill can determine how far you go.

Can you explain a complicated idea simply?

Can you present?

Can you negotiate?

Can you write properly?

Can you persuade someone?

Can you work with someone who disagrees with you?

Can you speak to a customer? (In the corporate world, ANYONE is a customer because you need them to agree to your ideas!)

Can you lead a team?

Can you stand in front of senior management and explain why your idea matters?

These skills don’t necessarily appear on the degree certificate.

But they can have a huge impact on salary over a 20- or 30-year career.

And this is where I think parents sometimes make a mistake.

We spend so much time asking:

“What should my child study?”

But perhaps we should also ask:

“What kind of person should my child become?”

#8 – The first salary is not the most important investment

Let’s say one degree leads to a starting salary of RM4,000.

Another leads to RM4,500.

That’s RM500 difference a month.

RM6,000 a year.

It matters.

But suppose the person earning RM4,000 becomes very good at what he or she does and reaches RM10,000 after several years.

Meanwhile the RM4,500 person remains at RM6,000.

The initial RM500 advantage becomes almost irrelevant.

This is why I like looking at income growth, not just starting income.

And higher income has another advantage. It gives us more money to save. More money to invest. More money to buy a property.

More money to build an emergency fund.

More money to prepare for retirement.

Ultimately, our children’s career isn’t just about buying a nicer car.

Earn more so that we can spend more.

Earn more so that we can invest more too.

SO, what would I tell my children?

I would tell them:

Choose something you are interested in.

Choose something you can become good at.

Choose something where there is likely to be demand.

But don’t stop there.

Learn how to communicate.

Learn how businesses work.

Learn how to use AI.

Learn how to solve problems.

Learn how to work with people.

Learn how to lead.

And most importantly, keep learning.

Because the degree that gives the highest starting salary in 2026 may not be the degree that produces the highest income in 2040.

The world will change.

The jobs will change.

The technology will change.

Our children will change too.

So maybe our job as parents isn’t to predict the perfect career for them. Maybe our job is to give them a strong enough foundation so that whatever happens next, they can adapt.

For my daughter, ASK was one small decision at Form 1.

It doesn’t guarantee she will become a software engineer.

It doesn’t guarantee a high salary.

It doesn’t even mean she will eventually study Computer Science.

It simply keeps another door open.

And sometimes, when it comes to our children’s future, keeping more good doors open is already a pretty good decision.

Happy studying.

Happy learning.

And to all the parents thinking about what their children should major in…

Don’t just ask, “Which degree pays the most?”

Ask:

“How do I also prepare them for the future which skills which AI may not replace…?”

That’s probably the more important question.

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Sources

• Department of Statistics Malaysia — Graduates Statistics 2024 — graduate numbers, employment and salary data. 
• Ministry of Higher Education — Graduate Tracer Study 2024 — graduate employment by field of study. 
• DOSM — Graduates Statistics 2024 detailed report — graduate salary by age and skill level. 
• Ministry of Higher Education — Graduate Employment Search — explanation of the 2024 graduate employment-rate methodology. 
• Original Kopiandproperty article — “Higher starting pay? What to major for the future?” — original article and Charles Tan’s personal experience of choosing between RBT and ASK for his daughter.