JS-SEZ can plug Johor’s brain drain, says business leader

 

An estimated 300,000 Malaysians travel to work in Singapore, attracted by better pay and the strong Singapore dollar. (AP pic)

JOHOR BAHRU: The government should focus on attracting advanced manufacturing industries to join the Johor-Singapore Special Economic Zone (JS-SEZ) in order to plug the southern state’s long standing loss of talent to businesses across the causeway, says a business leader.

Johor Business Association president P Sivakumar said moving away from low-skilled and labour-intensive industries to high-tech industries would raise local wages and potentially retain talent.

“We are looking at high-tech industries with strong automation, like robotics and artificial intelligence, which are not dependent on cheap labour.

“When Singaporeans (or other foreign investors) come into Johor, the issue of Malaysians working in Singapore will hopefully be reduced. Malaysians will come back to Johor to work, but for a higher salary, because these are not menial jobs.

“These industries are crucial for Johor right now,” Sivakumar told FMT in an interview.

An estimated 300,000 Malaysians travel across the Johor Straits daily, attracted by better pay and the strong Singapore dollar.

Last month, Johor proposed including 16 economic sectors under the JS-SEZ, namely electricity and electronics, medical, aviation, specialty chemicals, logistics, health, education, financial and business services, energy, digital economy, tourism, food, agricultural technology, creative industries, manufacturing and the halal industry.

Menteri besar Onn Hafiz Ghazi also said the economic zone will be spread across five local councils – Johor Bahru, Iskandar Puteri, Pasir Gudang, Kulai and Kota Tinggi.

Sivakumar said Johor’s extensive land mass and qualified workforce will complement Singapore’s well-developed logistics and technological industries, making the JS-SEZ an alluring option for regional and international investors.

However, he said the JS-SEZ should “look beyond Singaporean investors” to attract others from the region and beyond by capitalising on the city-state’s reputation as a regional financial and transportation hub.

“This special economic zone should be a gateway for overseas investors to enter Johor through Singapore,” said Sivakumar.

The business leader expressed confidence in the capability of Johor’s talent pool, saying the state government was actively developing its human capital through the Johor Skills Development Centre, where high school dropouts are encouraged to enrol in mechanical and electrical programmes.

Meanwhile, the Small and Medium Enterprises Association (Samenta) said the country’s workforce and manufacturing industry stand to benefit if multinational corporations (MNCs) set foot in the new JS-SEZ.

Ryan Lee, the chairman of Samenta’s southern region chapter, said high-tech MNCs would further the development of local talents.

“So the government should consider having friendlier tax rates to give foreign businesses an opportunity to set up their factories in Malaysia and build our industry and supply-demand chain,” he added. - FMT