Johor bahru: The development of the Johor-Singapore Special Economic Zone (JS-SEZ) is now one of Johor state government's main pillars to address the issue of brain drain. It will do this by offering a high-income employment ecosystem capable of rivalling Singapore's attractive labour market.
According to BERNAMA News Agency, Invest Johor chief executive officer Natazha Hariss emphasized in an exclusive interview that the focus has shifted to attracting high-impact investments that bring in capital and guarantee premium salaries for locals. This initiative aligns with Invest Johor's new corporate mandate.
He acknowledged the currency gap challenge, with S$1 currently valued between RM3.30 and RM3.40, but expressed optimism that the JS-SEZ could be a game-changer in narrowing the workforce's quality-of-life gap. The aim is to provide a dignified alternative, reducing the need for Johor residents to endure early morning commutes to Singapore for better income.
While local wages may not match the Singapore dollar in absolute terms, Johor's lower business costs allow investors to offer improved remuneration. This, combined with a better quality of life and work-life balance, presents a competitive proposition for the workforce.
To support this transition, Natazha highlighted the role of the Johor Talent Development Council (JTDC) in ensuring that nearly 50,000 Sijil Pelajaran Malaysia (SPM) school leavers and university graduates annually do not 'slip away'. The state government is synchronising industrial facility construction with skilled workforce development to ensure a seamless rollout.
Investors are already engaging with local universities like Universiti Teknologi Malaysia (UTM) and Universiti Tun Hussein Onn Malaysia (UTHM) to provide intensive training abroad, ensuring the direct transfer of skills and technology. Once the facilities in Johor are operational, local talent will be ready to fill professional positions.
Natazha also mentioned that Invest Johor has become more selective, prioritising companies focused on automation to reduce dependence on unskilled foreign labour while creating quality job opportunities. The goal is to attract investments that align with the government's aspirations in JS-SEZ and offer salaries commensurate with the local economy.
Johor recorded approved investments of RM110 billion last year, the highest among all states, and now targets RM140 billion in approved investment by 2026.