Brain Drain In Malaysia

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“Malaysia faces an exodus of talent in which emigration of high-skill individuals with the intention of holding permanent employment in foreign countries consequently lead to an issue of brain drain”. Examine the implications it brings and suggest some practical initiatives to overcome this issue of brain drain in Malaysia. Prime Minister Datuk Seri Najib Razak has alluded to the spirit of ‘Malaysia Boleh’ that describing the country’s progressive economic strategies. Malaysia continues to be growing knowledge and service based economy but challenges including high skill individual with intention of holding permanent employment in foreign countries consequently lead to an issue of the brain drain. Brain drain means that the losses of skilled…show more content…
The main cause is attributed to the less attractive salary and benefits offered in the country. This difference is especially noticeable in the high-skill technology sector. For example, the starting salary for a fresh graduate with bachelors in computer science is $50,000 in the United States. In Malaysia, the starting salary is barely $10,000. Even after adjusting for cost of living, the starting salary in Malaysia is nowhere as attractive as developed countries as overseas. This is further aggravated by luxury taxes in Malaysia. For example, a brand new Toyota Corolla costs as low as $18,000 in the United States but costs more than double in Malaysia. ( The brain drain is also attributed to the lack of career prospects and unavailability of opportunities in specific fields. The contribution of Malaysia’s economy is based on production and manufacturing instead of research and development, which makes it is a high demand for skilled labor but results in the lack of skilled job…show more content…
Some of the most popular responses were a paradigm shift away from raced based towards need based affirmative action and evidence of fundamental and positive change in the government. Other suggestions were to allow dual citizenship, practice meritocracy in race-blind way in hiring and daily workplace activities, more transparency in policy making, strengthening the role of the media, reduce government intervention in the economy, adopt systems of international standards in pay and benefits, open up more opportunities for non-Bumiputera students and strengthening teaching and research quality of faculty at universities. How to raise the demand for skills? Improvements to the enabling environment can facilitate this through the building of an internally-competitive and business-friendly economy, the provision of appropriate soft and hard infrastructure to support the knowledge economy and the adequate provision of bank finance and venture capital for innovation. Focused technology, innovation and urbanization policies can nurture niches of growth by building on existing strengthsand this is indeed the route being followed through Malaysia’s National Key Economic Activities. Greater specialization will assist in accelerating growth and create demand for skilled labor and increase social and private returns to education and skills

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