IS the brain drain from Malaysia – particularly from Johor to Singapore – something that should be gradually reduced, or is it something to be encouraged?
Johor DAP chief Liew Chin Tong had set the ball rolling by saying that if the wages in Johor were raised by two-thirds of that of Singapore the state might be on the way to reduce labour flow to Singapore.
Former Johor menteri besar Datuk Seri Hasni Mohammad complemented the position taken by Liew by saying that several policy measures including high-quality investments, reduction of low-skill foreign labour, improvements to the infrastructure, institutional and political reforms, business-favourable climate, improvements in workers’ productivity and others can reduce the flow of labour to Singapore.
However, another former Johor menteri besar – Datuk Seri Mohamed Khaled Nordin – thinks that it is wrong to discourage workers from working in Singapore.
He said that Singapore’s attraction is not a threat but an opportunity for Johoreans to improve themselves.
Moving to Singapore means that workers will be exposed to experience and obtain new skills, among other things.
Rather than worrying about brain drain, there is need to draw high-end investments and the creation of a business-friendly environment.
To artificially raise wages to discourage workers from going to Singapore is wrong.
As I have said earlier raising wages might not factor in productivity and the skills or talents of workers.
If wages are raised to stop the flow of labour to Singapore, such a move might backfire in the long run.
Wages should be raised in accordance with the productivity of workers based on talents. They cannot be mechanically raised to compete with Singapore as the economic and development trajectories of both countries are different in a qualitative sense.
Wages should be raised not to reduce the flow of labour to Singapore but to bring in high-end investments related to talents and productivity.
Johor should take steps to keep workers within the state, regardless whether the workers are going to Singapore or any other countries.
Johor should do what is necessary to upgrade skills of workers in the state by coming out with policy measures to improve investments and create a business-friendly environment.
Such policy measures must be introduced with improving the economy of Johor rather than being overly obsessed with Singapore.
It makes no sense for Johor to compete with Singapore on a variety of economic fronts.
Khalid’s argument is more sensible in that he is not artificially concerned with the need to raise wages, nor is he obsessed with the republic’s performance.
Minus the economic jingoism, he is more pragmatic for Johoreans to learn and upgrade their skills by working in Singapore. – May 11, 2022
Prof Ramasamy Palanisamy is the state assemblyperson for Perai. He is also deputy chief minister II of Penang.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
