Johor set to be first Malaysia state to offer ‘premium’ salaries for sectors related to proposed SEZ with Singapore

JOHOR BAHRU: Johor is set to become the first state in Malaysia to offer “premium” salary packages for skilled workers, especially in specific sectors related to the Johor-Singapore Special Economic Zone (JS-SEZ).
The pledged starting salaries, which could reach up to RM5,000 (US$1,146) for those with degrees in specific sectors related to the proposed SEZ would be about twice the average RM2,700 starting salary in Malaysia for degree holders according to the Malaysian Employers Federation. 
“What the Johor state government is doing is to ensure premium wages of RM4,000 for diploma holders and RM5,000 for those with the Malaysian Skills Certificate equivalent to a degree and I must acknowledge that no other state has done this far,” Deputy Prime Minister Ahmad Zahid Hamidi announced at the launch of the Johor Talent Development Council (JTDC) on Sunday (Nov 3), as quoted by national news agency, Bernama. 
“We recognise the fierce competition for retaining skilled workers, particularly given Singapore’s higher minimum wage after conversion … the minimum wage in Malaysia is RM1,700 (US$388) while the minimum wage in Singapore is (around) S$1,500 (US$1,138), equivalent to RM5,290,” Mr Ahmad Zahid added in his speech at the launch event held at Persada Johor International Convention Centre.
While Singapore does not have a minimum wage by law, the baseline gross wage for administrative assistants for example, has seen an adjustment to at least S$1,800 from July 2024 from S$1,500 in March 2023, under the Occupational Progressive Wages (OPW) developed by the National Wages Council (NWC).
The MSC is a formal certificate for skilled workers, issued by the Malaysian government. 
The council will continue to strengthen the ecosystem for TVET while providing high-skilled career opportunities, Mr Ahmad Zahid explained. 
“To prevent talents from seeking employment abroad, it is crucial to offer competitive wages and by introducing premium salaries, Johor aims to enhance local job opportunities, ensuring that they remain attractive to workers and graduates from over 220 TVET institutions in the (Johor) state,” he added. 
According to local media, Mr Ahmad Zahid had also instructed the Human Resources Development Corporation to allocate RM20 million to facilitate efforts in training and scouting talents to join the workforce. 
The launch of the JTDC on Nov 3 was also attended by Johor Chief Minister Onn Hafiz Ghazi, Higher Education Minister Zambry Abdul Kadir and Deputy Human Resources Minister Abdul Rahman Mohamad. 
The state’s chief minister Onn Hafiz Ghazi said that the JTDC talent hub will consolidate all educational and training courses in the state to meet industry demands and expand partnerships with industries and higher-education institutions in research, equipment provision and expertise-sharing, as reported by Bernama. 
“I believe Johor is the first state to launch a talent development council … we hope to offer high-value jobs for the major sectors under the JS-SEZ,” he said. 
Mr Ahmad Zahid said that there are currently 100,000 quality job opportunities under the JS-SEZ, with 74,000 such jobs made available. Only 52,000 of the positions have been filled so far. 
“This (Johor Talent Development Council) could ensure that the 100,000 quality job opportunities created under the JS-SEZ will be taken up … only some 52,000 have been filled which shows that people want high-paying and quality jobs,” he was quoted as saying by The Star. 
The proposed JS-SEZ aims to boost the Johor economy through economic cooperation with Singapore, with a Memorandum Of Understanding (MOU) signed between Singapore and Malaysia in Jan 2024. 
The idea of the Johor Talent Development Council was first brought up by Mr Onn in July this year, as part of his plans to transform Johor into a developed state by 2030. The council is said to liaise with universities and colleges to groom graduates for specific jobs to meet industry needs. 
“With a comprehensive policy and solid support from all stakeholders, I am confident that JTDC will play an important role in making Johor a developed state, as well as being the main reference in meeting sufficient and sustainable skilled manpower needs,” he said on Jul 18, as quoted by the Malay Mail.