‘Complement instead of competing with Singapore’

JOHOR BARU: Severe labour shortage has been an on-going situation faced by businesses in Johor, especially in the manufacturing and service sectors.

Johor South SME Association adviser Teh Kee Sin said the majority of businesses and companies in the state are in a Catch-22 situation.

“The solution to the problem is impossible, because it is also the cause of the problem,’’ he said.

Teh said it has been a longstanding challenge for manufacturers in Johor Baru, Pasir Gudang, Kulai and Senai to employ Johoreans or locals from other states.

He added Johor’s close proximity to Singapore is a disadvantage, as Johoreans have always been attracted to work in the island republic, largely due to the exchange rate.

“There is nothing we can do. We definitely cannot stop them from working over there,’’ said Teh.

He said the depreciating ringgit against the Singapore dollar since 2014 was the main factor prompting Malaysians, including Sabahans and Sarawakians, to look for jobs in Singapore.

“At the end of the day, financial gains remain the main factor and thousands of Malaysians are willing to spend hours commuting to Singapore daily to work,’’ he said.

On a positive note, Teh said local companies, especially in Iskandar Malaysia, would benefit from the skill and experience of workers who decide to return.

Iskandar Malaysia Johor Cham-ber of Commerce and Industry secretary-general Md Salikon Sarpin said Johoreans seeking greener pastures across the border is not only a Johor problem.

“People seeking a better life in other countries, including employment opportunities, are happening all over the world,’’ he said.

Salikon, who was Johor Commerce and Industry committee chairman from 1994 to 2000, said Johor should complement instead of competing with Singapore.

He said Johor could attract Singapore-based electrical and electronics (E&E) companies to relocate their operations to the state while maintaining their headquarters in Singapore.

“Johor needs to act fast to attract more high-tech investments like manufacturers producing smart-phones, medical devices and high-end home electrical appliances,’’ said Salikon.

He said attracting such high-tech investments would lead to the setting up of R&D centres in Johor, which will also create demand for semi-skilled and high-skilled local workers.

Salikon, who is also Malaysian International Chamber of Com-merce and Industry (MICCI) southern region executive councillor, said it was high-time for the state government to have a database on the number of Johoreans working in Singapore.

“Until now, we don’t have the exact number of Johoreans already working and seeking employment there every year,’’ he said.

Unofficial figures estimate that some 330,000 Malaysians commute daily to the republic to work, while around 400,000 Malaysians workers live in Singapore.

Malaysian Association of Hotels (MAH) Johor Chapter chairman Ivan Teo said the opening of the border between Malaysia and Singapore on April 1 last year had caused an acute labour shortage in Johor’s hospitality sector.

“Last April, May, June and July were the most challenging months for us in hiring staff,’’ he said.

Teo said most of the staff members were laid off during the first movement control order from March 18, 2020, up until early last year.

He said foreigners who returned to their countries did not come back to work again, as the government had continually frozen the hiring of foreign workers.

“When the border with Singapore opened, experienced hotel workers and new job seekers started crossing over there to work,’’ said Teo.

Teo said the association always looked at ways to attract more Malaysians to join the hospitality industry.

“Look at our ASEAN neighbours, only locals work as the ‘frontliners’ attending to hotel guests,’’ he said.