Malaysia's Deputy Minister of Investment, Trade and Industry, Liu Zhendong, recently called on companies to increase the wages of engineers to at least two-thirds of Singapore's wages, in order to avoid talent outflow.

According to the Oriental Daily, Liu Zhendong said in response to questions from lawmakers in parliament that as more and more foreign companies enter Malaysia, the government hopes that companies can pay higher wages to engineers to solve the talent shortage in the electronics and electrical fields.

An official survey in Malaysia shows that about two-thirds of Malaysians living and working in Singapore have a total monthly salary betweenBetween 1500 and 3599 Singapore dollars. Nearly 20% of the total salary ranges from 3600 to 9999 yuan per month; Revenue ranging from 10000 to 17999 yuan accounts for approximately 1.2%.

Published by the Malaysian Bureau of StatisticsThe 2022 survey results showed that 38% of Malaysians in Singapore are employed, while the rest engage in business, research, education, or have Singaporean spouses. Among Malaysian employees, 74% are skilled or semi skilled employees.

The authorities have warned that skilled employees working overseas may lead to talent loss in Malaysia. The reason why Malaysians choose to work in Singapore is because of the high employment prospects and working conditions, as well as attractive wages and currency exchange rates.

Liu Zhendong suggested that companies should pay two-thirds of the wages offered by Singaporean companies to engineers, so that engineers who work in Singapore may consider staying in Malaysia.

According to data from McKinsey Global Research Institute,In 2022, 9% of the global chips came from Malaysia, with a total value of approximately 102 billion US dollars (approximately 137.1 billion Singapore dollars). Malaysia's chip exports ranked fourth globally. In fact, as more and more foreign companies choose to settle in Malaysia, the government hopes that companies can pay higher wages to engineers to solve the problem of talent shortage. In this way, engineers who go to work in Singapore will choose to stay and work in Malaysia.

On the other hand,meanwhilehealsoIt is pointed out that as foreign enterprises choose to stay in China for a long time, this investment spillover effect is expected to continue to makeMalaysiaBecoming one of the important investment destinations driving the development of the global chip industry.