Surge in economic emigration raises concern

 

A recruitment agency CEO said this brain drain can lead to a shortage of critical skills and hamper Malaysia’s economic growth. (AP pic)

PETALING JAYA: There has been a surge in the number of Malaysians looking to work in Singapore, and this has raised concerns about the economic implications it will have for Malaysia.

The number of Malaysians who applied for jobs in the island republic rose 62% in the first quarter of 2024 compared with the same period in 2023.

According to Julian Tan, CEO of recruitment agency FastCo Malaysia, 46,462 Malaysians sought employment in Singapore from January to March this year, up from 28,641 in the same period last year.

Apart from the better quality of life in Singapore and more opportunities for professional growth, recruiters have cited the weakening ringgit for the increased interest in employment there.

The ringgit hit RM3.28 to the Singapore dollar on Jan 2, 2023, the first day of trading last year. On the same day in 2024, it was RM3.47 to the Singapore dollar.

The ringgit was trading at RM3.57 to the Singapore dollar on Feb 20, its worst day so far this year.

“Young adults aged 25 to 34 make up the highest proportion of Malaysians who have applied for jobs in Singapore,” Tan told FMT.

He said jobs in sectors such as retail, food and beverage, administration, engineering, and manufacturing are particularly attractive to these job seekers.

He said that apart from the obvious financial incentives, this demographic is also driven by the social and cultural similarities shared by Malaysia and Singapore. “This makes Singapore a very appealing destination,” he said.

“The integration of Malaysian migrants into Singaporean society is facilitated by the close proximity and historical ties between the two countries,” Tan said.

“Other factors such as job opportunities, access to quality education and healthcare as well as a better standard of living are all crucial factors that influence their decisions,” he added.

Singapore’s Channel News Asia, citing recruiters in the republic, recently reported that more Malaysians are seeking jobs down south.

Among the reasons given for the keen interest are good job prospects, stable employment, attractive salaries and an advantageous exchange rate.

Last year, former human resource minister V Sivakumar said that of the 1.86 million Malaysians who have emigrated as of 2022, a total of 1.13 million of them have gone to Singapore.

Recruitment agency Malaysia HR Forum CEO Arulkumar Singaraveloo attributed the increase in employment migration to a surge in startup activities and more attractive incentives in countries such as Singapore and Indonesia.

“These are fueling economic migration, particularly among entrepreneurs and tech professionals,” he said.

He said the loss of skilled workers and professionals can have severe implications for Malaysia.

“This brain drain can lead to a shortage of critical skills, hamper economic growth, and reduce the country’s competitiveness on a global scale,” he said.

“Additionally, it can lead to demographic shifts and a potential decrease in tax revenues, which are vital for national development,” Arulkumar added. - FMT