Groups: More FDIs mean better wages, less brain drain

JOHOR BARU: Attracting more foreign direct investments (FDIs) into Malaysia will be key in driving up wages, and that in turn would help to stop locals from seeking greener pastures abroad, say business groups.

South Johor SME Association adviser Teh Kee Sin said there were many reasons for the local workforce, especially youth, to search for employment outside of Malaysia, especially in Singapore.

“It is difficult to stop our local talent from seeking employment in countries such as Singapore as they want to earn more, which they are able to get if they go abroad.

“Working abroad can also enhance their value.

“With our ringgit being weaker compared to the US dollar while Malaysia is a small trading nation, it will be tough to strengthen our currency.

“The best approach is attracting more FDIs into our country, which is what the government is trying to do,” he said here yesterday.

Teh added that the government also needs to bring in more high-technology investments and value-added business activities to raise wages here to retain the local workforce, which is already under pressure due to the high cost of living.

Johor Indian Business Association president P. Sivakumar said the government should look into having more business-friendly policies that would make Malaysia more attractive to foreign investors.

“The Prime Minister will be tabling Budget 2024 next week and I hope he will announce new policies that can bring in investments such as artificial intelligence as well as robotics, which is a new sector that we should look into.

“Besides that, the government should be brave in implementing much-needed reforms that will push Malaysia to become a developed country in the near future,” he said.

Sivakumar said having more business-friendly policies and carrying out reforms would also attract overseas-based Malaysians to return home.

“Besides attractive wages, these overseas Malaysians want a stable future not only for themselves but also for their children,” he added.

Datuk Seri Anwar Ibrahim will table Budget 2024 in Parliament on Oct 13.