Malaysia’s Johor stems brain drain to Singapore

With the Johor-Singapore Special Economic Zone (JS-SEZ) launched, the state government hopes to reverse the long-standing talent outflow by attracting investors to create high-skilled and better-paying jobs at home.

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Thousands of Malaysians travel across the border for better salaries. PHOTO: THE STAR

July 17, 2025

JOHOR BARU – EVERY day, thousands of Malaysians make the daily grind across the border into Singapore, driven by the promise of a stronger currency and better career prospects.

For many youngsters in Johor, the idea of seeking employment across the Causeway has been deeply ingrained, shaped by years of watching friends and relatives chase better pay.

The rising cost of living in the state, especially in Johor Baru, has only made the already attractive plan of working in the neighbouring country even more appealing.

Now, with the Johor-Singapore Special Economic Zone (JS-SEZ) launched, the state government hopes to reverse the long-standing talent outflow by attracting investors to create high-skilled and better-paying jobs at home.

The JS-SEZ, which encompasses an area of 3,505sq km, is a unique initiative between Malaysia and Singapore to promote both nations and attract investments.

Among areas under the JS-SEZ are Johor Baru, Sedenak Tech Park in Kulai, Forest City, Tanjung Pelepas and Pengerang.

The key attractions of the special zone will include a passport-free immigration system and improved passenger rail lines between Johor and the city-state.

Target sectors of the JS-SEZ include manufacturing, logistics, digital, industry, healthcare and education.

In May, Johor Mentri Besar Datuk Onn Hafiz Ghazi said several investors had agreed to offer premium salaries starting from RM3,500 to local workers under the initiative.

StarMetro spoke to young Malaysians preparing to enter the workforce, to find out whether the JS-SEZ along with the premium salary it promises would be enough to change their minds or if Singapore remained the ultimate goal.

Better pay beckons

For Cheng Kai Neng, working in Singapore is a no-brainer, as his parents and elder siblings have already been working there for years and have even obtained permanent resident (PR) status.

“I have always planned to work there and eventually get my PR. I am not about to change my plan because of the JS-SEZ.

“The salary here, including the ones promised for the JS-SEZ, is significantly lower compared to that offered in Singapore.

“Perhaps if the difference is just a few hundred ringgit, I may still consider it.

“However, as far as I know, the difference is in the thousands. Even my father’s starting pay with just a diploma qualification was more than S$2,000, and that was years ago,” said Kai Neng.

Asked if there were any initiatives that could encourage him to remain in Johor, the 18-year-old student said he might consider only if he could get a scholarship.

“If the state provides more scholarships that require recipients to work in Johor for a certain number of years, then maybe I will stay.

“Perhaps after working here for a few years, because of the bond, I will eventually enjoy working here and see that it is better than I imagined,” he said.

The Form Six student, who scored 9As in his Sijil Pelajaran Malaysia (SPM), said such scholarship offers would also help dozens of students who were unable to enter matriculation locally despite achieving good results.

“I am disappointed as I have worked really hard yet still fell short, and I am not the only one feeling this way.

“That is one of the reasons for my plan to further my studies and work in Singapore, as I know my hard work will guarantee me better opportunities.”

Kai Neng believes that is also one of the reasons Malaysia is losing its talents.

“Many disappointed youths turn to other countries after not getting a place in matriculation or public universities,” he said.

Nineteen-year-old Ameer Mirza Noreswandi said he would consider working in Johor if he could secure a stable job with pay close to what he could get in Singapore.

“I would be happy to work here and not travel back and forth across the Causeway every day, but it is a sacrifice I am willing to make for a more secure future.

“If I can get a job that pays equally well or at least close to what I can earn in Singapore, then maybe I will consider it.

“But from the looks of it, the chances of that happening are pretty slim, as even the so-called premium salary offered is still significantly lower than in Singapore,” he said.

Ameer, who plans to pursue a degree in electronics, said he would give himself a few years to weigh his options.

“It will still take a few years for me to complete my studies, and I believe many things can change during that time.

“Perhaps by then, there will be more multinational companies here that can offer better opportunities and pay.

“If I can secure that, I will most likely remain here. If not, then Singapore is the obvious option,” said the student from the Manpower Department (JTM) Advanced Technology Training Centre (Adtec) in Senai.

Sharing a similar plan is J. Thenmalar, 19, from Negri Sembilan, who is also studying at the JTM Adtec Senai campus.

“The idea of working in Singapore is something I learned after coming here, as many of my classmates seem to have the same plan.

“It is an appealing idea. I plan to do the same after completing my studies,” she said, adding that she will return to her hometown if she is unable to get a job in Singapore.

Thenmalar, who hopes to become a graphic designer, said the cost of living in Johor Baru was also higher compared to her hometown.

“Despite the opportunities offered by the JS-SEZ, the cost of living here is high and I don’t think the salary offered will be enough to manage that,” she said.

Fresh graduate from Universiti Teknologi Malaysia (UTM) Johor, Melvin Low Rui Yi, 24, is also drawn to the idea of working in Singapore following his Johorean friends.

“My first option would be to get a job in Singapore, but I will consider working in Johor if I can land a job that offers a decent salary,” he said.

Low, who is from Pahang, said the JS-SEZ was already showing promising signs, as some companies based in Johor have started recruiting fresh graduates.

“My friends and I recently attended interviews with one of the companies to try our luck.

“I would be happy to remain in Johor, but the only issue I have is the high cost of living.

“If I don’t get a job in Singapore or one that pays well in Johor, I will have to return to Pahang.

“The cost of living here is too high for many, and I believe that is one of the main push factors encouraging Johoreans to seek employment across the Causeway,” he said.

Hopeful B40 group

JTM Adtec English instructor Siti Suraya Hani Mohd Juar believes most of her students still view Singapore as their first option, for now.

“Most of our students come from the B40 category and have a lot of financial burdens to shoulder right after graduating.

“For them, getting a high- paying job is not a matter of choice but of necessity,” she said, adding that the cost of living in Johor was also getting higher by the day.

“I am sure many want to remain in Johor if they have a choice, but the extra income they get from working in Singapore outweighs the time and hassle of travelling,” she said.

Siti Suraya said the prospect of working in Singapore was particularly appealing to her students who are in the Technical and Vocational Education and Training (TVET) field.

“Salaries for those in TVET, especially if they only have a certificate, are generally low here and that is very discouraging.

“On the other hand, in Singapore, even if they take up menial jobs, their pay is significantly higher,” she said.

Universiti Teknologi Malaysia (UTM) lecturer Assoc Prof Dr Mazlan Ali said the JS-SEZ might help bring more talent back to Johor in the long run.

“Although salaries in Singapore are higher, I believe RM3,500 to RM4,000 is a relatively decent starting salary for fresh graduates, especially since they have yet to gain any working experience.

“This will eventually help us retain talent, and I believe most companies within the JS-SEZ area are capable of offering such salaries.

“However, it also depends on the sector, as some industries may be able to pay more than others,” he said.

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