Malaysian Women

Malaysia’s Brain Drain: What is the Cause?

In the year 2000, one out of ten local graduates migrated, indicating that Malaysia has a serious brain drain.

According to the Organisation for Economic Co-operation and Development (OECD), this is twice the world average. Despite the numbers being similar to Singapore and Hong Kong, they are incomparable to Malaysia because that is typical for small and open economies.

Twenty years later, the situation has not improved. The nation’s brain drain has been growing at an average rate of six percent per year. There are now an estimated two million Malaysians living and working overseas!

In an online survey on the r/malaysia Reddit page back in August 2021, only 9 percent of the 3,200 Malaysians polled said they were satisfied with their lives in Malaysia and would not consider leaving. A whopping 28 percent, in the meantime, said they had considered moving to another country, but would most likely stay.

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Additionally, although we are importing workers into Malaysia, most of them are low-skilled, with 60 percent having only primary education or less, and the number of high-skilled expats has declined by a quarter since 2004. This is further compounded by the fact that we have not been able to replace the talent that is lost because the skilled workforce is not entering the country.

Additionally, although we are importing workers into Malaysia, most of them are low-skilled, with 60 percent having only primary education or less, and the number of high-skilled expats has declined by a quarter since 2004. This is further compounded by the fact that we have not been able to replace the talent that is lost because the skilled workforce is not entering the country.

It is easy to point out that wage and cost of living are the main reasons for brain drain. In Canada, for example, entry-level positions start at US$38,000 per year (equivalent to RM150,000 annually), whereas in Malaysia, fresh graduates earn about US$7,000 (equivalent to RM30,000 annually).  Brain drain is caused by a number of factors, however.

We must look further and dig deeper in order to reverse the brain drain. Brain drain is also attributed to a lack of career prospects and unavailability of opportunities in specific fields. Malaysia’s economy is largely based on production and manufacturing rather than research and development, making it difficult for those seeking skilled employment to thrive and grow.

For now, Malaysians will increasingly seek greener pastures elsewhere if we don’t do something about the declining standards of living, regrettably.

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