“Shrinkggit” — Strong Singdollar doubled job applications from Malaysia

SINGAPORE: In Singapore news, the strong Singapore dollar is causing job applications to double, a Malaysian daily reported recently. The Singdollar has grown against the ringgit since the pandemic began.

Ms Linda Teo, country manager at Singapore recruitment agency ManpowerGroup, was quoted in Malaysia’s Business Times (BT) on March 15 (Friday) as saying that the number of applications received from Malaysian applicants from December 2023 to January 2024 is two times the number of applications they received from December 2022 to January 2023.

“The strengthening of the Singapore dollar against the ringgit over the past few months has led to a surge of Malaysian job seekers applying for positions in Singapore.

Increased income opportunities due to the stronger Singapore dollar are among the key motivating factors,” she said.

Moreover, Ms Teo noted that there has been an increase in applications from Malaysians living in areas other than Johor, the closest state to Singapore.

BT also noted that among the 1.86 million Malaysians who lived overseas in 2020, the vast majority (1.13 million) lived in Singapore. These individuals worked in Singapore, married to a Singaporean, or simply lived there.

Some have called the ringgit the “shrinkggit” due to its seeming freefall.

On Feb 21, the ringgit reached an all-time low against the Singapore dollar, falling to MYR 3.5725 to SGD 1. The exchange rate was MYR 3.56 to SGD 1 the previous day. However, the ringgit has rallied since then and is now at MYR 3.526 to SGD 1.

Read also: SGD1 to RM3.5: Ringgit hits another all-time low; expert explains 3 reasons for the fall of ringgit

Ms Teo also said that ManpowerGroup receives applications from Malaysians for the retail, food and beverage, and administration sectors.

Jobseekers also look for employment in the corporate sector, particularly those who commute between the two countries.

She added, “For Malaysians possessing relevant technical skills, there is a notable interest in positions within the engineering and manufacturing industries.”

Nevertheless, concerns over Brain Drain, the phenomenon of top talent leaving a country due to more attractive salaries elsewhere, persist.

A study released last month by the Department of Statistics Malaysia (DOSM) and the Ministry of Economy highlights the country’s brain drain to greener pastures with better pay, specifically Singapore and Brunei.

Nearly two in five Malaysians (39 per cent) in Singapore are skilled workers, and almost as many (35 per cent) are semi-skilled workers. /TISG

Read also: Malaysia’s brain drain: More Malaysian skilled and semi-skilled workers employed in Singapore and Brunei