19-3-2024 (KUALA LUMPUR) Recruitment agencies in Singapore have witnessed a surge in job applications from Malaysian candidates, a trend directly attributable to the rising fortunes of the Singapore dollar against its Malaysian counterpart. According to ManpowerGroup, a leading recruitment firm operating in the city-state, the number of applications received from Malaysians has doubled when comparing the periods of December 2022 to January 2023 and December 2023 to January 2024.
Linda Teo, the country manager at ManpowerGroup, shed light on the driving forces behind this influx, citing the “increased income opportunities due to the stronger Singapore dollar” as a key motivating factor. The recruitment agency has also noted a significant uptick in applications from Malaysians residing beyond the southern state of Johor, a region traditionally known for its cross-border employment dynamics.
At the time of writing, the exchange rate between the Singapore dollar and the Malaysian ringgit stands at an enticing $1 to RM3.52, a disparity that has undoubtedly captured the attention of job seekers seeking to maximize their earning potential.
Teo further revealed that Malaysians tend to gravitate towards employment opportunities in the retail, food and beverage, and administration sectors within the Singaporean job market. Additionally, those intending to commute across the border exhibit a distinct preference for corporate settings with regular working hours, underscoring the appeal of a structured work environment.
“For Malaysians possessing relevant technical skills, there is a notable interest in positions within the engineering and manufacturing industries,” Teo added, highlighting the diverse array of opportunities that beckon the Malaysian workforce.
The allure of Singapore as a destination for Malaysian talent is further underscored by statistics from Talent Corporation Malaysia (TalentCorp), an agency established by the Malaysian Ministry of Human Resources. According to their findings, a staggering 1.13 million out of the 1.86 million Malaysians who had ventured abroad were residing in Singapore as of 2022.
Thomas Matthew, TalentCorp’s group chief executive, shed light on the multifaceted reasons driving this migration, citing better pay, employment opportunities, and working environments as key factors that entice Malaysians to seek greener pastures across the causeway.
However, the exodus of skilled workers from Malaysia has not gone unnoticed by the country’s authorities, who issued a stern warning in February regarding the “adverse effects” of brain drain. Citing findings from a study conducted in 2022, the authorities revealed that two-thirds of Malaysians living and working in Singapore command a gross monthly salary ranging between $1,500 and $3,599.
Notably, approximately one in five Malaysian workers residing in Singapore earns between $3,600 and $9,999 per month, while a modest 1.2 percent of those polled reported a monthly income between $10,000 and $17,999.
The Malaysia Department of Statistics further disclosed that nearly 74 percent of Malaysians employed in Singapore are classified as skilled or semi-skilled workers, a statistic that underscores the depth of talent attracted by the island nation’s job market.
In an effort to mitigate the effects of this brain drain, Malaysian authorities have stressed the need to encourage those who have found employment abroad to eventually return to their homeland, a challenge that will require concerted efforts to enhance the country’s economic opportunities and working conditions.
As the Singapore dollar continues to flex its muscle against the Malaysian ringgit, the gravitational pull towards the city-state’s job market is likely to intensify, presenting both challenges and opportunities for the Malaysian workforce and policymakers alike.
