Johor bahru: Johor must refine its cross-border economic strategy and sharpen policy clarity to address the outflow of skilled labour ahead of the planned launch of the Rapid Transit System (RTS) Link early next year.
According to BERNAMA News Agency, Johor Economic, Tourism and Cultural Office (JETCO) Singapore Executive Chairman Datuk Seri Hasni Mohammad emphasized the potential impact of the RTS Link on skilled labour migration. The RTS Link, set to connect Johor Bahru and Singapore, aims to enhance cross-border mobility, potentially encouraging more skilled workers to seek employment in Singapore due to improved travel conditions.
Previously, many workers faced early morning commutes and congestion crossing the Johor Causeway by bus or motorcycle. With the RTS Link, travel will be more convenient, potentially increasing the number of skilled workers opting for jobs in Singapore. This concern was highlighted at a recent JETCO meeting in Singapore, attended by representatives from the Malaysian embassy, the Ministry of Investment, Trade and Industry (MITI), and the Malaysian Investment Development Authority (MIDA).
Currently, about 400,000 Malaysians commute daily across the Johor Causeway to work in Singapore. The RTS Link, expected to begin operations in January 2027, will have the capacity to carry up to 10,000 passengers per hour in each direction, efficiently connecting Bukit Chagar in Johor and Woodlands North in Singapore in approximately five minutes.
Hasni, who also serves as Johor's Economic and Investment Adviser, suggested that the state government reevaluate the competitiveness of entry-level salaries, which range from RM4,000 to RM5,000. He proposed additional incentives, such as lower tax rates or temporary tax exemptions for highly skilled workers in the Johor-Singapore Special Economic Zone (JS-SEZ), to bolster their purchasing power and enhance workforce competitiveness.
Furthermore, Hasni highlighted the need to expedite approvals for investment-related facilities, pointing out that utility applications can take two to three months, creating uncertainty among investors. Delays in securing approvals for utility supply, such as water and electricity, can slow the process and prompt investors to seek ways to expedite it.
Hasni also identified rising property costs, policy uncertainty, including potential changes to the minimum wage, and a shortage of skilled labour as concerns for foreign investors. He stressed the importance of reassessing bilateral cooperation between Malaysia and Singapore to ensure a more balanced distribution of investment benefits, particularly in attracting high-value investments to Johor.
He asserted that Johor should not merely serve as a destination for low-value activities but instead focus on high-impact sectors to achieve sustainable economic growth.