2027 Budget must tackle brain drain, retain semiconductor talent
KUALA LUMPUR: The government must introduce bold policy shifts in the 2027 Budget to address brain drain in the high-tech sector and retain Malaysia’s semiconductor talent, said a student of International Affairs at Ming Chuan University in Taipei.
Malaysia must prioritize bold policy changes in the 2027 Budget to combat brain drain in the high-tech sector, particularly in the semiconductor industry, according to Farid Maulud, a student of International Affairs at Ming Chuan University in Taipei. The government's focus should shift from merely investing funds to improving job quality and retaining human capital.
While Malaysia's manufacturing investments are growing, entry-level salaries for engineering and technical graduates remain stagnant, and highly educated Malaysians are migrating abroad at a rate higher than the global average.
Farid emphasizes that the country's lack of investment in research and development (R&D) ecosystems, compared to regional tech hubs like South Korea, Singapore, and Taiwan, is a significant challenge. Penang and the Klang Valley have been hubs for outsourced semiconductor assembly and test operations, but an over-reliance on back-end processing has left skilled professionals undercompensated.
To transition Malaysia into a high-income design and innovation economy, Farid suggests several key policy pillars in the 2027 Budget. These include offering equity and tax incentives for local R&D, allocating targeted funding for IC design-focused execution, and establishing dignified wages through competitive domestic compensation to retain skilled professionals and prevent them from relocating overseas.
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