The disparity in wages and currency value leaves Johor struggling to fill 2,800 healthcare positions and other critical roles.
JOHOR BAHRU: Every day, nurse Bavanee Kengkan embarks on a grueling 90-minute commute from her home in Skudai, Johor, to her workplace in western Singapore. The journey involves multiple bus rides and a border crossing, often exacerbated by heavy traffic. Despite the challenges, Bavanee firmly believes her decision to work in Singapore has significantly improved her family’s financial situation.
Before resigning from her nursing job in Malaysia in 2014, Bavanee earned a basic salary of RM2,700 (S$788.19). In contrast, her starting pay as a junior nurse in Singapore was around S$2,500, equivalent to more than RM7,000. Within two years, she cleared her family’s home and vehicle loans. “The extra income gave us peace of mind,” said the mother of a 10-year-old daughter.
A Growing Trend Across the Causeway
The phenomenon of Johoreans seeking higher-paying jobs in Singapore is not new, but the recent depreciation of the Malaysian ringgit against the Singapore dollar has intensified the trend. As of late September, the Singapore dollar was trading at 3.43 ringgit, a 7.09% increase from July 2022.
This wage disparity has further strained Johor’s critical sectors, already reeling from workforce attrition during the COVID-19 pandemic.
“Every morning, tens of thousands of Malaysians head to Singapore for jobs paying S$2,000 or more,” said Deputy Minister of Trade, Investment and Industry, Liew Chin Tong. “In Malaysia, wages are typically a third of what they earn in Singapore, and the currency gap makes working across the Causeway highly compelling.”
Healthcare and F&B Industries Feeling the Pinch
Johor’s healthcare sector is one of the hardest hit, with a shortage of 2,800 nurses in public hospitals, said Johor Health and Unity Committee chairman Ling Tian Soon. Private healthcare providers face similar struggles, with some hospitals considering overseas recruitment to fill the gaps.
The food and beverage (F&B) industry is also severely affected. Johor Bahru Cooks Association president John Ang reported a 40% drop in chefs and cooks over the past year, as many skilled workers have left for Singapore.
“Chefs targeted by Singapore firms are highly skilled and can perform the work of two or three people,” said Ang. This talent vacuum has led to longer waiting times at restaurants and diminished customer satisfaction.
Efforts to Retain Talent
The Johor government has attempted to address the issue by forming a task force to tackle brain drain and wage disparities. However, progress has been slow.
Deputy Minister Liew suggested that Johor businesses need to offer wages that are at least two-thirds of Singapore’s rates to retain local talent. This could mean paying RM5,000 for positions that currently earn S$2,000 in Singapore.
While some businesses, such as Grand Senibong Seafood Restaurant, have increased executive chefs’ salaries to RM15,000 to retain talent, others find this financially unsustainable. Talent Corporation Malaysia CEO Thomas Mathew noted that many firms face operational cost constraints, making substantial wage increases unrealistic.
Long-Term Solutions
Experts suggest that Johor needs to invest in upskilling its workforce and attracting higher-value industries to bridge the wage gap. Initiatives like Malaysia’s Progressive Wage Model, similar to Singapore’s, could provide a pathway for workers to earn higher salaries through skill development.
“Employers must adopt sustainable business practices while employees commit to self-development,” said economist Lee Heng Guie.
Sunway University economics professor Yeah Kim Leng added that the local government must also enhance job opportunities and attract investment to retain talent.
A Persistent Challenge
Until wages in Johor rise and employment opportunities improve, the exodus of workers to Singapore is likely to continue. “Singapore’s economic progress and the widening income gap mean this trend won’t end anytime soon,” said Dr. Yeah.
For Johoreans like Bavanee, the decision to work in Singapore is not just about better pay—it’s about securing a better future for their families, even if it comes at the cost of long commutes and personal sacrifices.
