While Malaysia has a wide pool of bright and promising individuals, the country often suffers from massive brain drain as these individuals work overseas due to lack of job opportunities or low pay.
In a move to stem the ‘bleeding’, Johor will be launching an initiative to retain skilled workers by offering them premium salary packages, making it the first state to do so.
Johor to offer minimum RM4K salary for skilled workers
According to a report by NST, the premium salary packages is applicable for skilled workers trained under the Johor Talent Development Council (JTDC).
The initiative aims to safeguard and attract local talent by offering starting salaries ranging from RM4,000 to RM5,000, especially those who graduated from Technical and Vocational Education and Training (TVET) institutions.
Additionally, the JTDC will look into coordinating strategies to develop talent and ensure that skilled workers receive salaries that are in tandem with Singapore’s, most notably in 10 key sectors within the Johor-Singapore Special Economic Zone (JS-SEZ).
Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, who launched the JDTC yesterday (Nov 3), said the government has recognised the “fierce competition” for retaining skilled workers, especially given Singapore’s higher minimum wage after conversion.
Currently, Singapore’s minimum wage stands at SD$1,500 (approx. RM5,210), while Malaysia’s rose from RM1,500 to RM1,700.
Johor is addressing this challenge by establishing a premium minimum salary of RM4,000 for diploma holders and RM5,000 for those with equivalent degree qualifications.
“To stop local talents from working abroad, it is vital to offer competitive wages. By introducing premium salaries, Johor aims to enhance local job opportunities, ensuring they remain attractive to skilled workers and graduates from over 220 TVET institutions in the state,” he said.
Johor Menteri Besar Datuk Onn Hafiz Ghazi, who was also present at the launch, said Johor will focus on producing skilled workers based on demand, coordinating all courses and training initiatives accordingly.
This is to increase the state’s appeal within the JS-SEZ, where it continues to attract both domestic and international investments.
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