KUALA LUMPUR: Investment, Trade, and Industry Deputy Minister Liew Chin Tong, has stressed that the country does not lack talent among its people but rather facing a salary issue that has led many to seek job opportunities in Singapore.
He said if the country paid two-thirds of the salaries in Singapore, Malaysia would not face a brain drain problem.
"We have over a million Malaysians working in Singapore on low salaries.
"If we can produce products with higher complexity and pay higher wages, then many can work here instead of working in Singapore," he said during the debate on the mid-term review of the 12th Malaysia Plan (RMK12) for his ministry in the parliament today.
Meanwhile, Chin Tong said the number of jobs in the manufacturing sector is expected to increase to 3.3 million by 2030 at a compound annual growth rate (CAGR) of 2.3 per cent.
He said the job growth trajectory takes into account the increase in high-value-added activities, new industries, and the direct impact of increased automation and digitalization in the manufacturing sector.
"Through the New Industrial Master Plan (NIMP) 2030, the median wage for the manufacturing sector is expected to increase from RM1,976.00 (2021) to RM4,510.00 or a CAGR of 9.6 per cent by 2030.
"This median wage projection is also based on the involvement of the manufacturing sector in high-value-added activities, increased productivity and opportunities for highly skilled jobs," he said.
Responding to the extent to which the government is considering Kelantan as a new economic development location, Chin Tong said various initiatives have been implemented to ensure Kelantan is suitable as a preferred investment location.
He said among the projects implemented is the East Coast Rail Link (ECRL) project in Kelantan, which is expected to create 253,975 job opportunities by 2047.
"The project is also expected to increase the number of local tourists to Kelantan to 21.9 million and foreign tourists to 0.55 million by 2027, an increase of 97.4 percent compared to 2019," he said.
Furthermore, he said the government also provides various incentives to attract investors, including tax incentives, financial assistance, and facilities such as infrastructure development in industrial parks.
"Various initiatives are being implemented by the federal government and the state government to ensure that Kelantan is a preferred investment location in the country.
"The development results of the ECRL project will stimulate the economy in Kelantan, including spill-over effects on other sectors' growth," he said.
Source: https://www.nst.com.my/news/nation/2023/09/956895/malaysia-does-not-lack-talent-its-salary-issue-miti-deputy-minister