Beyond bigger pay cheques, what can keep Malaysia's frontline workers from Singapore? [WATCH]

For Malaysian workers considering whether to remain in Malaysia or relocate across the Causeway to Singapore for higher paychecks, the decision extends beyond just the prospect of greater salaries. Industry experts reveal that the choice largely hinges on career advancement opportunities, as many Malaysian workers find it challenging to envision meaningful salary increases as they gain skills, experience, and assume greater responsibilities.

This issue is especially pronounced among frontline workers who are often enticed by better-paying positions in Singapore, while local wages in Malaysia remain relatively stagnant around the RM1,700 minimum wage. According to the Statistics Department's International Migration Statistics, Malaysia 2025, Singapore remains the primary destination for Malaysians working abroad, with 39% of those employed there classified as skilled workers, 35% as semi-skilled, and 26% as low-skilled.

Among low-skilled workers, those in frontline occupations, 40% earn between S$1,500 and S$2,199 monthly, while another 34% earn between S$2,200 and S$3,599. In Malaysia, the challenge goes beyond merely raising the wage floor; it also involves creating a more structured wage progression system to incentivize workers to advance their careers locally.

Experts suggest that simply increasing the minimum wage to RM1,700, implemented in February 2025, is not sufficient to address the wage gap. Instead, wage growth should be pursued concurrently with productivity growth. A well-designed wage ladder that recognizes workers' increasing skills, experience, and responsibilities can provide both employers and employees with a clearer path for earning potential growth, making it a more sustainable approach compared to blanket wage increases.