Malaysia is witnessing an increasing number of its skilled workers and professionals seeking employment opportunities abroad. This “brain drain” is particularly evident when locals prefer jobs in neighboring countries like Singapore, attracted by higher salaries and better benefits. Human Resources Minister V Sivakumar has emphasized the pressing need for local employers to step up their game to reverse this trend.
Redefining Local Employment Benefits
Sivakumar’s clarion call is clear: employers in Malaysia must go beyond the basic RM$1,500 (US$331.07) minimum wage and focus on offering competitive salaries and additional benefits. This is not merely a suggestion but a strategy to ensure more Malaysians consider staying in the country and contributing to the local workforce. “Higher wages and enhanced facilities and benefits can play a pivotal role in making Malaysians rethink their decision to work overseas,” asserts Sivakumar.
Addressing Employer Concerns
The Malaysian Employers Federation (MEF) recently expressed concerns over a government mandate. The directive requires manufacturing firms to ensure that Malaysians make up at least 80% of their workforce by the end of 2024. MEF’s contention is that such a target is unrealistic. Sivakumar, while addressing these concerns, pointed out the vast job opportunities available within Malaysia and highlighted the reasons behind the current preference for overseas employment.
Extended Timelines and Government Support
Acknowledging the challenges faced by companies in meeting the initial workforce ratio deadline set for 31 December 2022, the government has now extended the deadline to the end of 2024. This move is in response to companies’ struggles in attracting a sufficient number of local employees within the earlier timeline.
Furthermore, to bolster employer efforts, Sivakumar encourages companies to leverage initiatives introduced by the Malaysian government. A notable mention is the targeted employment incentive, which promises a reward of RM$1,800 (USD$393.23) spread over three months for employees who fit specific criteria and have faced unemployment for more than two months.
Conclusion
The tussle between retaining local talent and the lure of overseas opportunities continues. However, with combined efforts from employers and supportive government initiatives, Malaysia is optimistic about fostering a vibrant and robust local workforce. It’s an ambitious goal, but with collaboration, enhanced employment benefits, and a shared vision, Malaysia is taking concrete steps towards achieving it.
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