CNA – The phenomenon of Johoreans seeking work across the Causeway for a higher disposable income is not new. The proximity to Singapore as well as the prospect of earning a salary two to three times what they would otherwise be paid in Johor are persuasive reasons.
But the recent depreciation of the Malaysia Ringgit against the Singapore Dollar has lured even more skilled Johoreans to seek jobs across the Causeway and those already working in Singapore, to continue doing so.
As of last Tuesday, the value of the Singapore dollar against the Malaysia ringgit was 3.4271 according to a Bernama report. This is up 7.09 per cent from about 3.20 in July 2022.
This has led to more pressure on some economic sectors in Johor which are already hit by attrition over the last three years due to the COVID-19 pandemic.
Deputy Minister of Trade, Investment and Industry Liew Chin Tong told CNA the federal government was acutely aware of the issue and that it has been vying to drive wages up in the southern state.
“Every morning, tens of thousands of Malaysians on their motorbikes head to Singapore, at 4am, 5am. They are working in jobs that pay SGD2,000. That is partly because in Malaysia, wages are very low… probably a third of the pay they earn in Singapore and in terms of currency conversion, there is a huge gap.
“So it makes a compelling case for ordinary Malaysians to work in Singapore. In Malaysia, we will have to push wages up by attracting higher investment into technology, automation and digitalisation,” said Liew, who is also Member of Parliament for the Iskandar Puteri constituency in Johor.
In May 2022, the Johor government announced that it would set up a special task force to tackle employment issues as well as the “brain drain phenomenon” to Singapore.
The state’s human resource committee chairman Mohd Hairi Mad Shah outlined then that Johor was “experiencing a lack of local workers for several main economic sectors in Johor such as service, commodities and manufacturing”.
He added that when the land borders reopened from COVID-19, many Johoreans received offers to work in Singapore and that the “currency exchange rate favours those earning Singapore dollars”.
More than a year on, the problem continues to plague Johor.
