Working in Singapore but living in Malaysia brings benefits to the country

The income earned by Malaysian workforce working in Singapore brings benefits not only to individuals but also to the country.

SHAH ALAM – The income earned by Malaysian workforce working in Singapore brings benefits not only to individuals but also to the country.

Universiti Putra Malaysia Senior Lecturer at School of Business and Economics Dr Mohamad Khair Afham Muhamad Senan said the higher disposable income earned will turn into more purchases or consumption in Malaysia.

“This situation is really beneficial to individuals who choose to work in Singapore but live in Malaysia (Johor), especially from the point of view of improving their standard of living.

“The income they get will boost the economic cycle, for example in the retail, automotive and tourism sectors.

“This is because, they are more capable if compared to individuals working in the same field in Malaysia,” he told Sinar Harian when contacted on Monday.

Earlier, the Department of Statistics Malaysia (DOSM) said that Malaysians working in Singapore and Brunei were able to earn the highest income of up to RM64,000 and RM53,000 per month respectively.

Commenting further, Mohamad Khair Afham said the types of jobs for the highest percentage include low and medium skill jobs such as the cleaning, maintenance and transport sectors.

He added that the second highest percentage involved jobs that required a high level of skill and professional services such as consulting, medical doctors and so on.

Following that, he expected more Malaysians to decide to serve in Singapore due to the state of the country’s economy and the consistent devaluation of the ringgit in recent times.

“However, Malaysia is at risk of facing a greater brain drain (expert migration) if this situation continues, especially for the supply of skilled workers and professionals.

“More financial incentives to work in neighboring countries will lower the motivation to serve in one’s own country.

“Over time, the supply of skilled manpower in Malaysia will decrease, and will have a negative impact on economic development in the future,” he said.