JOHOR’S move to set a RM4,000 starting salary for fresh graduates under its “Premium Wage” initiative is fast shaping up as a test case for whether Malaysia can finally slow its persistent brain drain.
Former Klang MP Charles Santiago has welcomed the proposal, describing it as a timely intervention aimed at retaining Malaysian talent and reducing the pull of higher-paying jobs abroad, particularly in neighbouring Singapore.
“The objective is clear — retain Malaysian talent, reduce the pull of higher-paying jobs across the border, and create quality opportunities closer to home,” he said.
Santiago pointed to recent figures to underscore the urgency of the issue, noting that between January and April this year, the Johor Talent Development Council facilitated 7,773 job placements.
In contrast, Kuala Lumpur and Selangor recorded the highest shares of employment losses, accounting for 25.6% and 29.3% respectively — underscoring broader labour market pressures beyond Johor.
He also cited worrying social indicators, including reports that over 900 students skipped the Sijil Pelajaran Malaysia (SPM) examination in February, with some opting instead to seek employment in Singapore due to higher wages.
“At a time when many young Malaysians are leaving for better opportunities elsewhere, efforts that focus on better wages and stronger career pathways at home must be welcomed,” he said.
Santiago stressed that Johor’s Premium Wage initiative should not remain confined to a single state, but instead be expanded nationwide as part of a broader strategy to build a more competitive workforce.
“Other states should take note. This should become a model for retaining talent,” he added.
While acknowledging that some may view the initiative as politically motivated ahead of elections, Santiago maintained that its real-world impact should be the primary consideration.
“That’s fair. But if it helps retain talent, raise wages, and create better opportunities for young Malaysians, then it is a positive development regardless of politics,” he said.
He also called on national leaders, including Datuk Seri Anwar Ibrahim and Human Resources Minister Datuk Seri R. Ramanan, to present clearer and more ambitious plans to address wage stagnation and youth migration.
“Some will view this as an election-year policy. That's fair. But if it helps retain talent, raise wages, and create better opportunities for young Malaysians, that is a positive development regardless of politics.
“Now let's see which parties have a better plan or explain why young Malaysians deserve less,” he added. – June 6, 2026
