This article first appeared in The Edge Malaysia Weekly on February 26, 2024 - March 3, 2024

Concerns over a “brain drain” made headlines on both sides of the Causeway last week after the Department of Statistics Malaysia (DoSM) released a statement on studies done on Malaysians working and residing in Singapore and Brunei in 2022 and 2023, saying 83% of Malaysians employed in neighbouring high-income countries are either skilled or semi-skilled.

Skilled workers made up 39% of Malaysians employed in Singapore and 68% of Malaysians employed in Brunei. More than half of the working Malaysian diaspora in both these countries have tertiary education or at least the STPM (A-level equivalent), DoSM said. It noted that most Malaysian individuals with a bachelor’s degree working in those two countries are in the 25-to-34 age group. Most respondents intend to continue working there, citing attractive exchange rates for both the Singapore and Brunei dollars (both hovering around 3.55 to the ringgit currently).

Chief statistician Datuk Seri Uzir Mahidin rightly said there is a pressing need for the government to revamp the structure of the labour market to enable it to effectively compete as well as foster, retain and attract talent, given that the loss of Malaysian talent means that other countries are benefiting from investments that Malaysia makes in its education system.

Eyebrows were raised, however, when Uzir said Malaysia “must reframe the narrative around brain drain, transforming it into a positive concept known as brain circulation”. His perspective means the Malaysian diaspora “will eventually return to Malaysia after a predetermined period, thereby contributing their acquired expertise and experience back to the country”.

That would happen only if the right policies are in place. Malaysia will lose more people to its richer neighbours if nothing is done.

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