Ok, not all of them.
The “Class of 2007” of Singapore Management University (SMU) are getting higher starting salaries than their seniors.
According to the SMU employment survey, their salaries are 6.7% higher than the previous cohort.
Of the 618 survey respondents, 69 got high-paying jobs that pay between $4,000 to $10,000 a month.
And those who got distinctions in their degrees – namely summa cum laude, magna cum laude and cum laude – receive an average starting pay of $3,500.
Congratulations to the SMU Class of 2007.
But the sceptics among us know that results of such employment surveys are always to be taken with a pinch of salt.
Reference: Channelnewsasia article. See also my last year’s post on the previous SMU cohort.
115 Comments
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With today’s high cost of living, average pay of $3500 is very little. As I have mentioned before, 15 years ago a MOE teacher with a good degree already earns a starting salary of about $3k. And things are so cheap compared to today. Please, today earn $3500… Something is wrong. $3500 a month cannot drive car, cannot buy house, cannot go travel frequently, cannot get married…
Maybe can if you don’t intend to save any money or if you buy everything with credit cards and chalk up purchases with 24 months installments.
I so chose the wrong place to study! Should have gone to SMU!
Then for those earning $1.5k per month = very poor.
Wish I was earning that kind of money.
A 4 year university easily cost >$100k. This includes tuition fees, books & stationaries, lost of income for 4 years(assume $2k/mth,4 years = $96k), transport cost etc.
The recent chinese papers interviewed some beer ladies. They earn more than $2k a month including commissions. Sorry no offense intended, but if a graduate earns only $3k a month after spending so much time and money, he is worse than a beer lady.
I see many people in the previous post of Get Rich Seminars that they complain spending $3k on a 5 days course but I don’t see people complain about spending >$100k and 4 years of a precious prime period of life on a university. Then only earn around a beer lady pay. Funny isn’t?
And please, don’t look down on beer ladies. One day they may become boss of a kopitiam. Remember that our Singapore’s David Gan was a shampoo boy when he started out.
Just posted a thread discussion on this
http://www.youth.sg/forum/showthread.php?p=31541
Anyways this is only true for 69 respondents. So ohwell.
I think any U in order to boost and attract the number of students , will definitely claim that the starting salary is very high. SMU is relatively new and I view the news as an advertisement.
word on the street is that SMU grads are looked upon very favourably (I guess though if you were a top student from the other unis it would be the same).
Anyway, the difference between a grad and a beer lady earnings 2k+ a month is the option value and scalability attached to those earnings…
I am from NTU and my some of my peers are earning 2500 still after 3 years. I find it strange that if starting pay for fresh grads are more than 3K why wouldn’t their bosses tag their salaries to the norm? I would take SMU’s figures with a pinch of salt, remember their M is not just for Management, but for Marketing as well.
most of these students are in the blooming banking and finance industry. If you look at the starting pay, say, NUS sans art or estate faculty, I wouldnot be surprise if its high too. If you read deeper, its really about which industry you should be in.
NUS arts earning high pay? Even estate degrees dun earn that much – my friends in those majors either end up as teachers or analysts for estate companies.
News just wanna to convey a certain message to general public which local Uni grads got the best salary in today’s market.
Who knows, there could be some certain marketing agenda behind. What about overseas grads ? Why don’t they do a general comparison as well ?
I have a friend from china and he says even if you have US$1 million in china, you are not even considered inside the “rich bracket”. You are only considered normal above average.
Today in Singapore, you earn SGD$3k a month and the journalist publish so proudly in the national newspapers for the whole world to see. My goodness! Please wake up SPH, don’t embarass Singapore!
SGD$3k a month live in Vietnam or Thailand can be comfortable.. Singapore? Ha.. That’s less than $100 a day. You go sakae sushi with your date already $60 gone. Please…
wait and see: i think your friend in china is deluded or from a very very priveleged background…
anyway agree with what most people say: i.e. it is the industry you are in that commands the pay. And since SMU is more skewed towards finance/business, you would naturally think they would get higher ave starting pay.
To e: Nope, the growth in China in the last 3 years or so was super phenomenal. The SSE composite index was around 1000 in Oct 05. It shot up to around 6000 in Oct 07! Yes, a small $200k investment grows to $1.2 million in just 2 years! And I am not talking about professionals picking excellent stocks. This is the market index! Any tom dick or harry can just close their eyes and buy!! You have no idea how much $$ the chinese made…
And here in Singapore we are talking about whether $3k or $4k a month is good pay. Please wake up SPH..
If I can still pump 1 litre of petrol for $1, buy a pack of marlboro at $5, buy a 3rm HDB for $100k, buy a new 3 bedrm condo for $5xxk then I will be convinced $3k a month is enough.
Anyway these are the prices in 1990, where a MOE teacher with a honours degree is already earning a starting pay of $3k per month.
“wait and wait”, I dunno what’s your issue with how you perceive university education as wasteful and your condescending view towards the value of money.
Yes, there are others who earn multiple times more than the average in this world, but COME ON, $3.5k for starting pay is really comfortable. This is not even considering the potential increments in the upcoming years.
So for God’s sake, please quit the ATTITUDE, and stop being in denial man.. SHEESH!
Whatever,
I apologise if you are offended with my comments. Please don’t take it personal. Anyway I understand that a person’s salary is a very sensitive issue, and “讲钱伤感情”.
You have your view that $3.5k TODAY is enough. I respect it. I have my view that $3.5k TODAY is not enough. And very far away to make it to the national newspapers to be glorified. So it’s fair.
I never did say Uni education is wasteful. Salary aside, one can learn many other things in Uni. But here at salary.sg we are discussing about salary alone, aren’t we? And I am only commenting about the salary portion. If one earned $3.5k and keep quiet and be humble about it, it’s perfectly fine. But earning $3.5k to be proudly glorified in the national newspapers for the world to see? The earners are not wrong, SPH and the journalist is.
You are right, there may be potential increments. There can also be potential paycuts. Fair? Remember SARS? 911? 97 crisis?
It’s ok if you don’t agree, since its meant to be a discussion. If you are offended, I apologise again. Cheers!
hi all, I’m an SMU graduate and hope to comment on this news. I would like to say that this news is both accurate and inaccurate.
First of all, not all SMU students responded to the survey thus who would respond? Those who earn higher pay.
Second, SMU is a business school with a LOT of students majoring in finance, and we all know much much banks pay their employees, EVEN with today’s financial difficulties.
Thirdly, as I have graduated and found a job, I also know of many of my peers’ and seniors’ earning powers. There are some who earns 2,400 a month and there are some who earns more than 10,000 a month. It really depends which industry you go to. The higher paying ones tend to be the banks, especially in investment banking, or the management consultancy firms.
So I guess, the news is accurate in a sense. I’m just not sure about the % of people who got the 4k-10k range. It looks right to me though. Approximately 20% of people I know are are receiving their first paycheck in this salary range.
I don’t get it. If you know that some of your seniors earn 2.4k (very low), and some earn 10k+ (very good), then you know that industry is the major factor in that, why don’t you all go to that 10k+/month industry?
Why are there still graduates going to the 2.4k/month industry?
Don’t tell me that it’s because you “love” the 2.4k/month industry.
Is it because of competition? In that case all the best, brightest students will surely go to the 10k industry right? Then why the summa cum laudes are still getting an average of 3.5k?
This 3.5k is average some more, meaning that, assuming some of the cum laude guys are earning 10k, there are a lot, lot more cum laude guys earning below 3.5k to bring the average down to 3.5k.
Which proves what I’ve suspected all along: when it comes to money, school smart doesn’t pay. Street smart and networking do 🙂
I agree with some of what Howcome have said and here’re some fresh commentaries to that.
few things we tend to forget:
– the number of people earning that amount of money (little)
– the type of people earning that kind of money (high-profilers)
So when you hear a comment saying that I know people like them, and you hear the same from 20 other people, it is still highly probable we are talking about the same group of people.
Another thing about the choosing of industry. There’s a limit on the number of finance students in the school. Not everyone are summa cum laudes as well. Most of the students will not be summas going into investment banking or consulting. However, most summas will not be be taking up 3.5k jobs as well. And there you go, the natural distribution of valuable jobs based on academic rankings.
Lastly, Howcome talked about being street smart and having networks. That is probably the most important point of all. People whom I know earning in excess of 5k a month have gotten their jobs or interview opportunities due to their participation in competitions, be it academic or sports. Some gotten them just because they frequent particular golf courses. Guess what, you may need to be financially equipped first.
Hi
I am a SMU alumni as well. Graduated 3 years ago. I believe al has given a pretty accurate summary of the situation for us.
Would like to comment on Howcome’s question below
Howcome:
“why don’t you all go to that 10k+/month industry?
Why are there still graduates going to the 2.4k/month industry?”
This is because the side of banks that pay so well, “the Front Office” is EXTREMELY hard to get in 🙂 because, as u have described already… everyone wants to get in for the pay… think that is pretty self-explanatory
why study so hard ?
be a monk.
earn 600k+ per year.
——–
Straits times 20th may:
Top monk’s 2001 earnings – $660,000
AN ONGOING legal battle between a Buddhist temple and its former business partner has thrown light on the big pay cheques and business interests of its top monk.
A court was told that the Venerable Meow Ee, 41, of the Leong Hwa Chan Si Temple in the Novena area, had been earning $100,000 a year in the last few years; his bumper year was 2001, when he took home $660,000.
lol. i read that piece of news as well.
Anyway, seriously speaking, why are we ‘jealous’ or ‘disbelieving’ of the 10k/month earners? I truly believe that most of them earned their rights to their remunerations. Knowing some of them personally, they are not only intelligent, they have sufficient EQ as well. Many a time, we often condemn a smart person for his/her arrogance and lack of friends. Well, these people are probably not in the 10k/month zone. And i’m not talking about commission-based salaries. So there, envy them but use them as a goal, not beating bags.
Second point, 10/k a month is not THAT high. Of course it’s crazy for a fresh graduate but just look at the little shops around Singapore. Some of them are earning in excess of 30k a month without any qualifications at all. My relatives, though low in education levels, own their businesses (in fixing cars, selling audio sets, selling PCs, hair salons etc) and still manage to stay in condos or private estate.
So my point is? If you can’t join the 10/k guys in investment banking or consultancies, start your own business.
Anyway the Straits times said the average pay was $3040. Not $3500. Can we have a poll? Is $3040 in today’s cost of living enough for you to live VERY COMFORTABLY? Pls give your comments. Btw, starting pay doesn’t mean your next year pay will automatically go up. Starting pay can also mean it might be your highest pay in many years to come. Not to think so is naive and inmature. There are only 2 guarantees in life; death and taxes. Salary is never guaranteed to go up automatically.
Pass degree pay
‘This is just about the $2,350 starting salary for graduates with a pass degree entering the civil service.’ MR CHU SINGFAT: ‘Singapore Management University reports that last year’s graduates’ average starting pay was $3,040. The top 20 per cent got $5,600 on average. This implies that the remaining 80 per cent got an average starting pay of about $2,400. This is just about the $2,350 starting salary for graduates with a pass degree entering the civil service.’
If by “very comfortably” you mean having a car, and all those other amenities that you mentioned, no need to poll everybody can figure out the answer already: no.
But “very comfortably” differs from person to person. What one thinks is very comfortable is not your idea of very comfortable. So just agree to differ lor.
Anyway like I said, if we use your definition, then no need to poll we all also know that it’s not enough.
There are people who own flats, cars, wives and children living on a 3k salary. Of course, I guess they don’t take annual holidays in Europe or eat at restaurants every weekend. But like what Howcome says, it is sufficient for them; it’s a matter of managing one’s expectations.
For many of my friends with a polytechnic diploma (I was a poly grad), they are willing to slog the additional hours (shift work) for a monthly remuneration of 3k to 5k and believe it to be sufficient. For the friends I know in university, they find it to be barely adequate for ‘survival’; having to ‘give up’ luxuries like insurance, investments, condominiums and cars. Different people have different needs and wants and the education system have nurtured this expectation in us, subjected to adaptations to our workplace environments.
It amuses with the stupidilty of certain replys around here with those comparing a SMU degree to a beer girl or a poly diploma perhaps they seem to miss out on the fact that 3.5K is a starting pay and a degree holder climbs the career ladder way faster than any of the former with limitless opportunties.
By the replies, can I conclude that $3040 is sufficient only for survival mode (ie. enough to feed the family, have a small house and pay bills) and not enough for comfortable living? Yes, No? If so then what’s the big news that it needs to be published in the national newspapers? Should we feel sad or happy that one is earning $3040 after 20 years of education? I am only talking about salary itself, nothing else.
To RE, I think you look down on beer ladies. It’s also a job. Sell curry puff also can make $100k a year. Shampoo boy can also become millionaire celebrity(David Gan). Btw, I have a degree and I see myself as very normal. Degree only ma. Everybody have. Please be humble. I think you have forgotten about Sars. Yes you can climb very high, you can also drop very fast. Captain pilot with >20 years experience also can get retrenched by SIA during Sars. Anything can happen. You can call me stupid and other names, it’s ok.
To know why many people with a $3040 monthly pay can “magically” buy so many things, read this post. Fantastic writeup.
http://muhammad-ridzwan.blogspot.com/2007/02/bankrupt-mat.html
To : wait and wait
Nah i didnt mean that, but im positive that a degree education is by no means wasted and unworthy of pursing. and im not calling you names
wait&wait, thanks for the link. Good writeup. My last two bosses get a 5-figure salary, and they don’t even have a car. No need, they say. MRT so good already. (Which I agree totally.)
My personal opinion is that one must earn at least $6k net take home monthly (about $7k before CPF) to comfortably own a small jap car (say corolla) without having to sacrifice the quality of life in other areas.
Therefore $3040 is definitely not alot. Since it is not alot, why is it in the newspapers? My wild guess is that it is a SMU advertisement. Why the chicken rice seller earning $3k to $10k per month not in newspapers?
wait and see: its because its a starting salary, not a retirement salary… if you are still earning $3k mid career, then its nothing to boast about…
Hi e, pls read my previous comments on starting pay. Last year some new condos are launching their units at about $1000 psf, this year the same condos launching the remaining units at about $900 psf. It dropped! Starting pay and property launching prices are similiar. Doesn’t mean next year will be higher. It can be paycut. Forget about starting pay or ending pay. If you earn $3040 today means you earn $3040 today. Period. Tomorrow we might die of earthquake. Who knows what will happen 10 years later?? Do you understand what I mean? Cheers!!
Its clear that salaries only go up and not down unless in a rare situation, do compare the chances. $3040 starting pay is really high btw
Property prices only go up and not down? Sure? Haha..
Let’s not go off-topic. To wait and wait, I believe some of the comments that salary will indeed go up is not at all ridiculous. Most salaries do incrementally increase, though the rate of that increment is highly variable.
In the end, it boils down to the industry again. Marketing or accounting graduates may get a starting pay of 2.4k to 3.3k but it is statistically shown that in 10 years (if you do perform), a marketing director is capable of earning more than 10k a month. A full-time property or insurance agent may take home basic pay of 2k a month but their commissions enable them a 5-digit remuneration once they secure their client base.
Potential benefits of one’s career is probably not going to decrease if one is willing to work hard. The net present value of future salaries however, would depend on the industry that one is in.
You earn more because you create more value. You don’t earn more automatically without doing anything more. That’s my message. Chicken rice seller earns more because he sells more plates of chicken rice. Or because he opens more branches. He don’t sleep and wake up suddenly earning more.
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al, the key phrase is “if you DO perform”. I’ve been working for more than a decade now. When I go for reunions with my schoolmates, some of them have soared so high, and some of them, like wait says, are still earning 4-5k, and that’s from their single-digit percentage yearly raise in the same company.
I totally agree with wait’s “you don’t earn more automatically without doing anything more”. You have to be aggressive, perform, and sell yourself like mad, and jump when you see a good opportunity.
I have this friend who works as a programmer. He is very good at bullshitting and bluffing his way through interviews, but he really got exposed when he joined the bank I worked for.
He was then fired, and since then his salary has gone down from job to job (he kept getting fired), till he had to go back to his first company. Apparently the first company was operating at such a low level that his incompetence was never exposed. He is a hard worker though! Just the brains are not there (brains to do the real thing–brains for bluffing are fully there).
Quite poor thing–at nearly 40 he has no assets whatsoever, and his savings are in the low 5-digit range.
My econ prof. at my LAC once told me that if the ibanking sector is so good why do they need all the advertising?
peanuts: you sure ibanking even advertises? it’s the unis that are advertising. if that’s indeed what your prof says, he doesn’t know what he’s talking about.
hmm.. i don’t think ibanking advertises.. the only time I hear of ibanking work in the media are the few sentences in Business Times stating so-and-so bank managed this M&A or IPO etc..
mango: Perhaps I am outdated. The last time I was back in Singapore and saw that advertisement by a BB was June 07. Also, I don’t study in Sgp lah.
I work in a bank: pay > $5000.
I have 2 Masters, years of working experience.
But No car, no children, live in HDB.
And I am feeling poor.
Because if you think about feeding yourself til the day you die and cursing that your life ends at age 80 max, you would know that ‘living comfortably’ means having to save the $$$ for rainy days, and you can only do so in less than 20 years.
Good luck to all. Owning a car? That is suicide.
A starting salary of 3.5k is indeed very good, although i do get your point that it’s not “fantastic” to the extends to be publish in the paper. To me, when i just gotten my 1.7 starting salary few years back, i feel rich enough to live comfortably + save a decent amount + giving some to my parents. I guess it’s all about how you spend and save bah.
i think 3.5k is rather high for a first pay package. just consider this: the median family income of families in sg is only 5+k. if one earns 3.5k, the family income will be 7k already. means as long as it is a smu grad couple, they will be above the sg median. and this is not considering that their income will very likely increase. could easily be 10k, 15k when the couple get married.
if single and still living with parents, 3.5k is more than enough.