Johor is set to become the first state in Malaysia to offer premium salary packages for skilled workers, aimed at keeping local talent within the country’s borders. Through the Johor Talent Development Council (JTDC), the state will provide starting salaries of RM4,000 for diploma holders and up to RM5,000 for those with degree-equivalent qualifications, a significant step up from the national average.
Speaking at the Johor Career Carnival held at the Persada Johor International Convention Centre, Deputy Prime Minister Datuk Seri Dr. Ahmad Zahid Hamidi emphasized the urgency of competitive wages to retain skilled workers.
“We recognize the fierce competition for retaining skilled workers, particularly given Singapore’s higher minimum wage after conversion. Johor is addressing this challenge by establishing a premium minimum salary of RM4,000 for diploma holders and RM5,000 for degree holders,” Zahid said.
Meeting the Singapore Challenge Head-On
The JTDC initiative aims to counteract the attractive salaries offered in Singapore, where the minimum wage translates to about RM5,210 in Malaysian ringgit. Zahid underscored the importance of keeping Malaysian talent from seeking employment abroad, especially in high-demand sectors within the Johor-Singapore Special Economic Zone (JS-SEZ).
“To stop local talents from working abroad, it is crucial to offer competitive wages. By introducing premium salaries, Johor aims to enhance local job opportunities, ensuring they remain attractive to skilled workers and graduates from over 220 TVET institutions in the state,” Zahid shared, explaining the strategy behind the JTDC’s mission.
Focused Talent Development for High-Demand Sectors
Johor Menteri Besar Datuk Onn Hafiz Ghazi, who co-launched the JTDC with Zahid, highlighted the council’s role in coordinating training efforts across the state. According to Onn Hafiz, the JTDC will focus on producing skilled workers based on demand from industries, ensuring that talent is developed in line with specific job market needs.
“The JTDC will align all training programs to meet the requirements of high-demand sectors, bolstering Johor’s position within the JS-SEZ and attracting both domestic and international investments,” Onn Hafiz explained.
With a strong talent pipeline tailored to market demands, Johor aims to stand out as a preferred location for investors and a supportive environment for skilled workers.
Elevating the Status of TVET Graduates
Another critical part of the JTDC’s initiative is recognizing the value of Technical and Vocational Education and Training (TVET) graduates. Under Malaysia’s Skills Certificates (SKM) system, Zahid explained that different certification levels reflect educational achievements: SKM levels 1 and 2 are equivalent to SPM, levels 3, 4, and 5 align with diploma standards, while SKM level 6 corresponds to a degree, and levels 7 and 8 match master’s and PhD qualifications.
This structured certification system will guide salary offers to skilled workers, helping ensure that qualifications are fairly rewarded in Johor.
“Our aim is not only to attract and retain talent but also to recognize the significance of these qualifications in driving economic growth,” Zahid said.
Boosting Johor’s Economic Appeal
The Johor Career Carnival, organized by the Human Resources Ministry through the Social Security Organisation (Perkeso), showcased the commitment to offering opportunities, with 116 companies providing 15,000 jobs. By aligning wages with global standards, Johor’s JTDC initiative is poised to prevent the talent drain that has long affected Malaysia and reinforce Johor as a key player in Southeast Asia’s economic landscape.
This new salary standard could very well set a precedent for other Malaysian states, establishing Johor as a leader in talent retention and workforce development.
Source: here
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