Juggling multiple roles: Due to the shortage of workers, service staff such as waitresses at eateries in Johor have to juggle between taking orders and serving customers. — THOMAS YONG/The Star
JOHOR BARU: Random checks with about 20 small and medium enterprises (SMEs) here have found that they have lost about half of their workers to Singapore because of the republic’s strong dollar.
“Even hair salons are facing a shortage of hairdressers.
“The lure of the Singapore dollar is quite strong,” said SME Association of South Johor president Tan Siew Keng.
She said checks with about 20 of its member companies showed that about 50% of their employees had left due to this.
“Some of the affected sectors are manufacturing, logistics, services and accounting.
“Many non-technical staff have also opted for blue-collar jobs in Singapore,” she said when interviewed.
Citing examples, Tan said that a person earning a monthly salary of RM3,000 in Malaysia could likely get a job paying S$3,000 in the republic.
As such, the person would get about RM10,500 due to the currency exchange rate.
“This is very attractive to many, no doubt. Some would rather lose their senior ranking here to work in a junior position across the border because the salary is still higher after converting to ringgit,” she added.
Tan noted that some Malaysian companies have taken steps to retain their staff by adjusting salaries and employee benefits.
“Many Malaysians do look at the employer-employee relationship besides the salary offered.
“Staff who feel that they are being taken care of by their bosses will choose to stay.
“Furthermore, they know that commuting to and from Singapore daily is not only tough and stressful, but it also takes away quality time with their family,” she said.
According to Tan, the weak ringgit has caused many SMEs to face an increase in operating cost, which affected their profits.
She urged the government to stabilise and strengthen the ringgit for the nation’s long-term economic growth.
Johor Baru Chinese Chamber of Commerce and Industry president Low Kueck Shin said the high cost of living in Malaysia, especially in Johor Baru, had caused locals to look for higher- paying jobs not only across the border, but also in other countries such as Hong Kong.
Job Chan, the regional and Singapore vice-president for the managed services business at a Japanese company based in Iskandar Puteri here, said the business had placed a priority on hiring Malaysians and aims to employ up to 200 people for its new hub in the future.
“More than a dozen in our current employment are Malaysians who decided to come back for work rather than cross the border daily.
“After the Covid-19 pandemic when people working in Singapore were separated from their families due to travel restrictions, many have opted to seek employment here to spend more time with their loved ones,” he said.
On Wednesday, Johor Immigration Department director Baharuddin Tahir said the average number of daily travellers using the Causeway and Second Link had exceeded the pre- Covid-19 levels from the previous 400,000 daily to the current average of 430,000 to 450,000.
