‘Brain circulation, not brain drain’: Economists back Johoreans working in Singapore

JOHOR: Local economists are pointing out that when Johoreans work in Singapore, this is good for the state. They encouraged this perspective rather than seeing cross-border work as a brain drain, a concern that was recently expressed.

According to reporting from Free Malaysia Today (FMT), economists say that Johor residents should not be discouraged from working in Singapore, as the state can gain advantages from this, not just in terms of income inflow but even healthy working habits.

The “brain drain” issue had been raised in the state election scheduled to take place tomorrow (July 11). According to Kartiyaini Jeyapalan, a candidate under the Pakatan Harapan banner for Skudai, because the pay is higher in Singapore than in Malaysia, many young Johoreans are enticed to work in the city-state. Ms Kartiyaini therefore expressed concerns over the challenges of retaining talent in Johor.

The issue is not a new one. In early 2024, a study released by the Department of Statistics Malaysia (DOSM) and the Ministry of Economy highlighted the country’s brain drain to greener pastures with better pay, specifically Singapore and Brunei. Nearly two in five Malaysians (39%) in Singapore are skilled workers, and almost as many (35%) are semi-skilled workers.

In Brunei, the numbers are even higher, with 68% skilled workers and 24.1% semi-skilled workers among Malaysians residing there, said Chief Statistician Datuk Seri Mohd Uzir Mahidin at the time.

Economists present a different view

One of the economists who spoke to FMT, Arshad Ayub Graduate Business School professor Tan Peck Leong, pointed out that since many cross-border workers still live in Johor, much of their earnings are spent back home.

He was quoted in the report as saying, “Given the strength of the Singapore dollar, this will also boost the purchasing power in Johor,” which would lead to a spillover effect.

Instead of the disadvantages of “brain drain,” he suggested that “brain circulation” would be good for Johor’s workers, who come back to the state with “better work ethics, cultures and ideas from Singapore,” which serves to strengthen Johor’s workforce.

Among the stronger work ethic he mentioned was “discipline, punctuality, productivity standards, customer-service culture, technical skills, and professional networks.”

Malaysia University of Science and Technology’s Barjoyai Bardai, meanwhile, told FMT that Johor could be positioned as Singapore’s “preferred expansion corridor rather than its competitor,” citing the Johor-Singapore Special Economic Zone (JS-SEZ) as key for a “twin economy model” that would make both Johor and Singapore stronger together. /TISG

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