The grass is always greener on the other side
Less attractive salaries at home and sweeter opportunities abroad are deepening Malaysia’s brain drain woes, according to a recent survey by the Department of Statistics Malaysia (DOSM).
A weaker ringgit is compounding the country’s brain flight. The currency has depreciated against the greenback to RM4.57 as at Mar 13 from RM3.35 a year ago. Ten years ago, the ringgit stood at RM2.57 against the Singapore dollar; today it’s hovering around RM3.51.
The resultant loss of skilled talent could be a dilemma for South-east Asia’s fifth-largest economy, which is hoping to woo high value investments. Pundits expect the Johor Bahru–Singapore Rapid Transit System, which will commence operations in 2027, to speed up the pace of talent mobility between the two countries.
The same factors – better pay and job opportunities – that are pulling Malaysians across the causeway and overseas are also keeping them there, according to according to a DOSM survey released in February. Some 5,663 Malaysians working in Singapore participated in the survey. Key findings include:
A majority, or 62 per cent of the Malaysian diaspora, were employed as skilled workers overseas; 35% were semi-skilled workers; while only 3% were low-skilled workers. This raises serious concerns over Malaysia’s “brain drain” dilemma.
Among the skilled Malaysian workers in Singapore, four out of 10 earned an average monthly income of between S$2,200 and S$3,599 while the highest pay was S$18,000/m.By comparison, in Malaysia, the average monthly salary for skilled workers in 2022 stood at around RM4,500 (S$1,275)
Most respondents said the overall employment process was easier in Singapore with clear guidelines. The government’s openness in welcoming foreign talent was another plus point.
Malaysia is no longer “net importer of labour” but is also exporting workers to other countries.Of over 1.8 million Malaysian diaspora living overseas, a majority or 60 per cent resided in Singapore, according to data from the United Nations Department of Economic and Social Affairs.
The number of Malaysian women working in Singapore was 31 per cent higher than men in 2020. “They (women) might not have the same status and opportunities to climb up the corporate ladders if they stayed in Malaysia,” said Universiti Sains Malaysia professor Noraida Endut in a report.
Another survey conducted last year by Malaysia’s Human Resource Development Corporation involving nearly 8,500 students, echoed the findings in DOSM’s report with 30 per cent keen to work abroad. Their top choices – Singapore, Japan and Australia.
Interesting tidbit
MYR-SGD exchange rate
2014
2024
RM2.57
RM3.51
A majority of Malaysians want to continue working in Singapore for three to five more years
Headache over brain drain
The Singapore factor
Majority of Malaysians who work in Singapore are work permit holders
Biggest Malaysian diaspora across the Causeway
More Malaysian women choosing to work abroad
The number of university degree holders employed in Singapore are rising
SOURCE:DEPARTMENT OF STATISTICS MALAYSIA
SOURCE: DOSM
SOURCE:MINISTRY OF MANPOWER SINGAPORE
SOURCE:UNITED NATIONS DEPARTMENT OF ECONOMIC AND SOCIAL AFFAIRS.
SOURCE:DOSM
1 to 2 years
Other
3 to 5
years
More than 10 years
6 to 10 years
33.2%
24.8%
23.6%
11.4%
7.0%
Better job opportunities
Higher pay
Favourable currency rate
Job stability
Better living environment
Better working environment
Better wage increment
Good company policies
Cultural similarities
Proximity to home
Wants to be closer to family member who stays in SG
More opportunities for career progression
25%
20%
11%
8%
6%
6%
2%
6%
6%
5%
3%
3%
Note: Others included EntrePass (for foreigners who were interested in starting their business in Singapore), Personalised Employment Pass as well as Overseas Networks and Expertise Pass.
Data as at 2021
Work permit
849,700
Others
27,200
Employment pass
161,700
S pass
161,800
1.2 million Malaysians are pass and permit holders
BTVisual: Chaytanya Bandishte, Hyrie Rahmat
SingaporeBangladeshAustraliaUKUSBruneiCanadaNZChina and HKIndiaOthers
489,46961,65684,71833,52735,92729,54011,63010,3106,8245,13536,421
643,455137,96292,56845,20938,02023,08813,98811,0079,1158,46632,002
Country (2020)
Men
Women
SingaporeBangladeshAustraliaUKUSBruneiCanadaNZChina and HKIndia
1,132,924199,618177,28678,73673,94752,62825,61821,31715,93913,601
1%- 2%24%6%3%9%8%25%4%9%
2020
% change from 2015
Master’s degree
Bachelor’s degree
Diploma
Other qualifications
3.3%
30.1%
63.5%
3.1%
3.8%
25.2%
66.3%
4.7%
3.8%
19.8%
72.0%
4.4%
2.0%
19.8%
70.6%
7.6%
1.8%
13.4%
74.1%
10.7%
2017
2018
2019
2020
2021
3.3%
30.1%
63.5%
3.1%
3.8%
25.2%
66.3%
4.7%
3.8%
19.8%
72.0%
4.4%
2.0%
19.8%
70.6%
7.6%
1.8%
13.4%
74.1%
10.7%
Other qualifications
2017
2018
2019
2020