Johor to introduce premium salaries for jobs in special economic zone with Singapore

MALAYSIA: In a groundbreaking move, Johor is poised to become the first Malaysian state to offer attractive starting salaries of RM4,000 (S$1,200) for diploma holders and RM5,000 for degree holders in specific sectors tied to the Johor-Singapore Special Economic Zone (JS-SEZ).

Deputy Prime Minister Zahid Hamidi announced this initiative during the launch of the Johor Talent Development Council (JTDC) on Nov 3, The Straits Times reports.

Attract and retain talents

Zahid emphasized that the JTDC will be instrumental in fulfilling the state’s vision of providing premium compensation to attract and retain young talent.

He noted that the JS-SEZ is expected to generate around 100,000 high-quality job opportunities, with approximately 74,000 jobs currently available but only 52,000 filled.

This gap highlights a growing demand for high-paying employment among Johor’s workforce.

In his speech, Zahid pointed out the competitive landscape, particularly in Singapore, where salary conversion rates make the allure of Singaporean jobs even stronger.

Johor leading the way

For instance, he mentioned a local firm offering a minimum wage of RM1,700, in stark contrast to a Singaporean company offering S$1,500, which translates to nearly RM5,000 after conversion.

“Johor is leading the way by introducing premium salaries for our skilled workforce,” Zahid stated.

To support this initiative, he has directed the Human Resources Development Corporation to allocate RM20 million to the JTDC within the next month to enhance training programs and identify skilled workers.

Johor Chief Minister Onn Hafiz Ghazi also highlighted local companies’ challenges in attracting skilled talent.

He expressed confidence that the JTDC, which he believes is the first in Malaysia, will spearhead efforts to align educational offerings with industry needs.

“We are collaborating with data centres to ensure that diploma holders receive starting salaries of RM4,000 and degree holders RM5,000,” Onn Hafiz said, underscoring the goal of creating high-value jobs within the major sectors of the JS-SEZ.

The JTDC is also tasked to partner with higher education institutions to ensure that curricula meet current industry demands, fostering an ecosystem of training, education, and career development and cultivating a world-class, highly skilled workforce.

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