Johor Introduces Premium Salaries to Attract Skilled Workers in the JS-SEZ

Johor is making waves with its latest initiative to attract skilled workers: premium salary packages that could reach up to RM5,000 (approximately S$1,200) for degree holders. This bold move is linked to the Johor-Singapore Special Economic Zone (JS-SEZ), aimed at addressing the growing demand for high-quality talent in the region.

Premium Packages for Skilled Workers

Deputy Prime Minister Ahmad Zahid Hamidi announced the launch of the Johor Talent Development Council (JTDC) on 3 November 2024, marking a significant milestone for the state. “Johor is the first Malaysian state to offer premium salaries—RM4,000 for diploma holders and RM5,000 for degree holders,” Zahid stated during the launch at the Persada Johor International Convention Centre.

  • Current average starting salary in Malaysia: RM2,700
  • Johor’s starting salary compared to Singapore’s minimum wage: RM1,700 versus around RM5,290
  • Estimated premium jobs expected under the JS-SEZ: 100,000

Strengthening Local Talent

The government is not just throwing cash at the problem; they’re also investing RM20 million into the JTDC, aimed at training and scouting for talent within Johor. “We recognise the fierce competition from Singapore for skilled workers, and this initiative aims to ensure that job opportunities remain attractive to locals,” Mr Ahmad Zahid emphasized.

Collaboration with Educational Institutions

Johor Chief Minister Onn Hafiz Ghazi echoed the need for partnerships between the council and educational institutions. This collaboration is intended to align courses offered by universities and colleges with industry demands, ensuring that graduates are job-ready.

“We hope to offer high-value jobs for the major sectors under the JS-SEZ,” he added, signifying a proactive approach to economic development.

Bridging Job Vacancies

Despite the ambitious job creation plans, there’s a stark reality: as of now, approximately 52,000 of the 74,000 available positions under the JS-SEZ remain unfilled. This highlights the demand for skilled labour while illustrating the gaps that the JTDC aims to bridge.

As Johor positions itself as a hub for skilled talent in the region, it could drastically alter the employment landscape, benefitting both the local economy and workers looking for rewarding career opportunities. With a comprehensive package aimed at developing skilled manpower, the future looks promising for the state.