Introduction

JOHOR BAHRU: In a groundbreaking move, Johor is poised to become the first Malaysian state to roll out “premium” salary packages targeting skilled workers, particularly in sectors tied to the newly proposed Johor-Singapore Special Economic Zone (JS-SEZ).

Salary Incentives

The incentives include starting salaries that could soar to RM5,000 (approximately US$1,146) for degree holders in key sectors associated with the SEZ. This significantly outstrips the average starting salary of RM2,700 (US$615) for degree holders across Malaysia, according to the Malaysian Employers Federation.

Government Remarks

Deputy Prime Minister Ahmad Zahid Hamidi, during the launch of the Johor Talent Development Council (JTDC) on November 3, remarked, “What the Johor state government is doing is unprecedented in Malaysia. We aim to ensure premium wages of RM4,000 for diploma holders and RM5,000 for those holding the Malaysian Skills Certificate, which is equivalent to a degree.”

Comparative Wage Context

Although Malaysia's minimum wage stands at RM1,700 (US$388), it contrasts sharply with Singapore's effective minimum wage of approximately RM5,290 (US$1,250) due to the latter’s higher salary standards and recent wage adjustments—such as the increase for administrative assistants from S$1,500 to S$1,800 set for implementation in July 2024.

The Malaysian Skills Certificate

The Malaysian Skills Certificate (MSC), a recognized credential for skilled workers, further enhances the job market prospects for individuals seeking employment in Johor's flourishing economy.

Talent Retention and Attraction

Mr. Ahmad Zahid emphasized that this initiative not only aims to retain local talent but also to attract qualified professionals from various sectors. He noted that the JTDC will play a vital role in fostering an ecosystem that nurtures skilled workers through training and partnerships with higher education institutions.

Educational Program Collaboration

The JTDC will offer a consolidated approach to educational programs, enhancing collaboration with industries to ensure that curricula align with market demands. Johor Chief Minister Onn Hafiz Ghazi stated, “We hope to create high-value jobs, particularly in the primary sectors of the JS-SEZ.”

Job Opportunities

The proposed JS-SEZ is anticipated to generate a remarkable 100,000 quality job opportunities, with 74,000 positions already available. However, only 52,000 of these roles have been filled, reflecting a desire among job seekers for higher-paying positions.

Economic Cooperation with Singapore

With the Memorandum of Understanding (MOU) signed between Singapore and Malaysia in January 2024, the potential for economic cooperation is set to rise, promising a significant boost to Johor's economy.

Addressing Brain Drain

In addressing the 'brain drain' issue, where skilled workers leave Malaysia for better opportunities abroad, the Malaysian government aims to create an environment conducive to their return. The establishment of the JTDC is seen as a strategic measure to ensure a sustainable skilled workforce that can cater to the growing demands of the JS-SEZ.

Conclusion

As Johor embarks on this ambitious journey towards becoming a developed state by 2030, it is clear that a comprehensive policy framework and robust support from all stakeholders will be crucial in achieving these objectives. Johor's commitment to offering premium wages is undoubtedly an enticing factor in securing a competitive edge in the search for talent in today's global economy.