Malaysia's brain drain phenomenon: 4 examples. I found myself beginning to contemplate if working abroad would be more beneficial for my personal growth as well as my career development. In the past six months, there's been a surge of local interest in the trend of brain drain in Malaysia. The Malaysian brain drain has been growing exponentially over the last four decades. We need to factor in two aspects while evaluating the potential for remote working. Perhaps, remote working and digitalisation could be a positive trend in addressing the talent shortage due to brain drain? Can there be positive sides to the brain drain? Brain Drain. . The policymakers were aware of this too. The general level of technological advances, innovation and digital transformation in the industry increases the scope of tasks and collaborations that can be done remotely. The establishment narrative has been 'tak apa' or 'good riddance,' or more thoughtfully, that this exodus is just part of a general regional and world . At the same time, foreign direct investments are always hungry for home economies whose industries are densely infused with professional and highly skilled individuals, especially in tech as of the latest trend. First, the government should have a more progressive outlook on R&D and begin investing greatly in it. This paper compares . Those working abroad but spending in Malaysia (for example, daily commuters between Malaysia and Singapore) or working and living abroad but sending remittances to Malaysia do contribute to the demand for Ringgit. Can there be positive sides to the brain drain? . However, what is the size of this effect? Already a decade ago, the National Economic . What we do know is that the brain drain slowed a little from 2016, and dramatically . About 55% of the diaspora resides in Singapore, making up for about 44% of Singapores immigrant population. YXPM Debuted on ACE Market with MYR31.26 million in Proceeds Raised, Tuju Setia Targets RM2.8 billion Worth of High Rise And Hospital Projects, Digital Transformation Imperatives Drive Demand For As-A-Service IT In Malaysia. making up for about 44% of Singapores immigrant population. It had a profound negative systemic impact on the nation, including such afflictions as starvation of talent replacement, poor governance and policymaking, middle-income trap, low industry development (less breadth and depth), corruption etc. For Malaysia to be successful in its journey to high income, it will need to develop . When people of the highest productive and intellectual potential leave the country in great numbers, that country will find it more challenging to maintain a high intellectual and academic standard as these individuals are the vital driving force to create a more educated and professional society, cultivate and develop other talents. There has, however, been no specific dataset developed on the stocks and flows of Malaysian-born migrants. May 26, 2022 at 12:47 PM. To put this in another perspective, according to a paper written by Docquier, F. and H. Rapoport, the world average rate of brain drain is about 5 per cent, while Malaysia was averaging a figure close to 10% in the year 2000. About 55% of the diaspora resides in Singapore. Brain drain happens when highly skilled workers emigrate in search of a higher standard of living, and unfortunately, Malaysia is a country that has been greatly affected by brain drain. If this situation persist, it may create an 'intense' brain drain situation which could disrupt Malaysia's vision to achieve high-income economy by the year 2020. A deficient pool of highly skilled individuals who, among other things, are the key creators of start-ups and a thriving digital ecosystem in the economy significantly shrinks the countrys potential to attract foreign direct investment and, therefore, further economic development. However, many of them are Malays who have felt strongly enough to leave. For the Malays they have been pounded with the idea that other Malaysians hard earned wealth is also theirs. A recent survey by McKinsey of 800 corporate executives worldwide and across all industry sectors found that the potential for remote work, although existent and likely to stay, is highly concentrated among highly-skilled, highly educated workers in a handful of industries, occupations, and geographies. A complete overhaul of the overall Malaysian setup of governance and policymaking is the single most critical variable to reversing the brain drain. Save my name, email, and website in this browser for the next time I comment. The World Bank used previous data and estimated . More and more skilled labourers are beginning to realise that maybe the grass isnt always greener on the other side and that living abroad is not as perfect as it is portrayed to be. It had a profound negative systemic impact on the nation, including such afflictions as starvation of talent replacement, poor governance, and policymaking, middle-income trap, low industry development (less breadth and depth), corruption etc. All the above have a devastating impact on the brain drains home currency, and this fundamental incessant weakness is what we see in Ringgit Malaysia, especially since 2015. Bhd., is a company that offers products & services from oil and gas, chemical refinery, rig building industry and telecommunication. Other than the main reason of perceived racial discrimination and lack of meritocracy as stated by the abovementioned article, one of the prominent factors for brain drain in the country is the lack of suitable opportunities. For many years, it has served the industry with dedication, winning projects especially in the Heating, Ventilation and Air Conditioning (HVAC) industry. If one talks to members of the Malaysian diaspora in Australia, New Zealand, United States, and Britain, there is a significant number of Malays exiting Malaysia to migrate to other countries. The general level of technological advances, innovation and digital transformation in the industry increases the scope of tasks and collaborations that can be done remotely. Gone are the days when Malaysia enjoyed 9% economic growth, back in the 1990s. Of course, the geographic proximity of such a highly developed nation as Singapore makes it a perfect destination for migration. A sensitive, yet substantial cause of the Malaysian Brain Drain is social injustice. The money remittance has also helped to, lower poverty and increase the standard of living. With the number of just the documented non-Malaysian workers standing at around 2.1 million in 2020, we can easily picture how the outflow remittance from Malaysia can quickly negate the positive effect of remittance by Malaysian migrants. ; weak institutions; subjective norm pressure from important others such as family, friends or colleagues. ; social and economic stability; ability to adapt to the culture. Perhaps. And yet the country has experienced considerable changes in policies and socio-economic conditions since the late 1980s. Current statistics of the brain drain from Malaysia are difficult to come by, as it's a very sensitive issue. Human capital is the bedrock of the high-income economy. However, the then-government was seen not only indifferent but even hostile toward those who had left Malaysia. The Malaysian brain drain has been growing exponentially over the last 4 decades. According to this migration agent, 15 percent of migrant visa application to Australia are now from Malays. It had a profound negative systemic impact on the nation, including such afflictions as starvation of talent. Malaysia ensures that medical trainees on government scholarships sent to the UK and Australia return by having legal contracts and guaranteeing that there are jobs to return to. The push factors originally come from the home country (Malaysia in this case) and consist of elements that motivate people to leave the country. September 23, 2021. Could there be potential benefits to brain drain? They just want to practice Islam how they believe Islam should be practiced. As a result, professionals will now seek opportunities away from home to utilise their skill set and further develop their career. Is it sufficient to make a sensible impact on the Ringgit? (function($) {window.fnames = new Array(); window.ftypes = new Array();fnames[0]='EMAIL';ftypes[0]='email';fnames[1]='FNAME';ftypes[1]='text';fnames[2]='LNAME';ftypes[2]='text';fnames[3]='MMERGE3';ftypes[3]='address';fnames[4]='MMERGE4';ftypes[4]='text';}(jQuery));var $mcj = jQuery.noConflict(true); Malaysias Brain Drain: A Crisis Waiting to Happen? Those who couldnt conform to this culture were often bullied and became very unhappy within their workplaces. The Malaysian brain drain has been growing exponentially over the last four decades. The more skilled labourers there are living overseas, the more money they transfer to their families back home. The more skilled labourers there are living overseas, the more money they transfer to their families back home. An efficient public bus network - critical in connecting the nation. This figure, even after taking into account the difference in cost of living in both countries, is not an attractive one for graduates. What is brain drain? Who tf . Ethnicity-based preferential policies have long been considered one of the major factors of brain drain in Malaysia. However, straight after that ramble, many talked about not being able to freely express themselves in Malaysia, and the need to socially and intellectually comply with the prevailing narratives, rituals, and codes set by society. However, there is one more factor by which we need to multiply the above overall potential the industry development. Human flight and brain drain index (data available from 2007 to 2020) suggests that Malaysian brain drain has been on the rise throughout the period. With the number of just the documented non-Malaysian workers standing at around 2.1 million in 2020, we can easily picture how the outflow remittance from Malaysia can quickly negate the positive effect of remittance by Malaysian migrants. It had a profound negative systemic impact on the nation, including such afflictions as starvation of talent replacement, poor governance and policy-making, middle-income trap, low industry development (less breadth and depth), corruption etc. The topic of brain drain has been increasingly becoming the talk of the town for Malaysians during the last few years. The topic of brain drain has been increasingly becoming the talk of the town for Malaysians during the last few years. Furthermore, new research has shown that emigration of skilled labour, at an optimal rate, can be seen as beneficial as there will be an exchange of knowledge known as brain circulation that will lead to further growth and development. The Malaysian government should also be actively scouting for fresh graduates and offer them jobs to ensure their return. Until this changes, we will not be able to reverse our brain drain. Published in Astro Awani, Sinar Daily, Malaysiakini, MYsinchew, and Focus Malaysia, image by Focus Malaysia. The big question here is why are skilled Malaysians compelled to leave the country, and how does this exportation of human capital affect the potential growth of our nation? Meanwhile, the global empirical research links the persistent brain drain issue with various structural problems for its home country (Figure 3), such as ageing population, low intellectual and academic standards, starvation of talent replacement, low aggregate creative potential, poor governance and policymaking, middle-income trap, low industry development (less breadth and depth), poor quality of life, poor economy, low foreign direct investment, fewer job opportunities and corruption. Published in Astro Awani, Sinar Daily, Malaysiakini, MYsinchew, and Focus Malaysia, image by Focus Malaysia. Brain drain refers to an exodus of skilled and talented workforce from the country. All the above reasons run contrary to the narrative that Malays are attracted to other countries due to the pull of better opportunities, where the grass seems to be greener. Please, Current statistics of the brain drain from Malaysia are difficult to come by, as its a very sensitive issue. An article in the local Malaysian media highlighted that it is not just non-Malays seeking refugee status in Australia. On the other hand, the pull factors are what attracts Malaysian abroad. Nur Amalina Che Bakri. A complete overhaul of the overall Malaysian setup of governance and policymaking is the single most critical variable to reversing the brain drain. Click the link we sent to , or click here to sign in. Remember again, the Malaysian brain drain is voting with the feet against the overall Malaysian setup of governance and policymaking, which is the single most critical variable we need to change before we see everything else start falling into place, not only brain drain. Malaysian brain drain is voting with the feet against the overall Malaysian setup of governance and policymaking, which is the single most critical variable we need to change before we see everything else start falling into place, not only brain drain. The brain drain phenomenon, otherwise known as human capital flight or human capital outflow, is an issue widely covered by both the mainstream and the alternative media. While facing low industrial development and chronic skills mismatch rooted in the ongoing education system crisis, reverse brain drain (stopping and returning the lost to the foreign lands high-skilled and talented individuals) will become our best bet to jump-start Malaysias industry and economy. And it also makes it easier for Singapore to headhunt our brainiest compatriots. The Malaysian economy is primarily centred around production and manufacturing rather than research and development. It has long been known that significant numbers of non-Malay Malaysians have migrated to other countries in search of more opportunities and a better life. Background of migration and Brain Drain in Malaysia Not the fact that all of them send remittances back home, and even if they do how much? Malaysias Brain Drain: No Solution In Sight! Brain drain happens when highly skilled workers emigrate in search of a higher standard of living, and unfortunately, Malaysia is a country that has been greatly affected by brain drain. The report, released in June and cited by various Malaysian media outlets, sparked a debate about Malaysia's brain drain situation. However, there is one more factor by which we need to multiply the above overall potential the industry development. A recent survey by McKinsey of 800 corporate executives worldwide and across all industry sectors found that the potential for remote work, although existent and likely to stay, is highly concentrated among highly-skilled, highly educated workers in a handful of industries, occupations, and geographies. II. "This is a serious problem that has to be resolved soon as the brain drain continues to reach epic proportions," Roshan Thiran, CEO of Malaysia-based leadership firm Leaderonomics, said. I hope that the evident evolution of the current job market and the increase in effort by the government will help curb the mass exodus of Malaysian talent. The Malaysian brain drain phenomenon has been growing exponentially over the last four decades. Names like Jimmy Choo, Tsai Ming-Liang, Kwen Liew, Zang Toi, Yuna, Bernard Chandran, Tan Hock Eng, Ng Yi-Ren, James Wan, Pua Khein-Seng, and Penny Wong come up, just to name a few successful expatriate Malaysians. At the same time, foreign direct investments are always hungry for home economies whose industries are densely infused with professional and highly skilled individuals, especially in tech as of the latest trend. Note that we are talking here about digital transformation versus plain digitalization. Brain drainthe migration of talent across bordershas an impact on Malaysia's aspiration to become a high-income nation. This is called remittance, and it helps provide developing countries with foreign currency, finance imports and increase national income. Even though an attractive salary could be one of the major factors, undoubtedly impacting many spheres of the individuals life. Is it sufficient to make a sensible impact on the Ringgit? Medical brain drain in Nigeria and its impact on Sustainable Development Goal 3. Despite Strong Opposition Singapore To Raise GST To 8% Next Year Velesto Secures RM630 Million Drilling Job From Hess Exploration, Boustead Plantation Chief Executive Officer Resigns. As can be extrapolated from the available global statistics, the Malaysian diaspora is about 2 million. Extrapolating from the reported figures over the past years ranging from 1980 to 2019 (World Bank, 2011; Foo, 2011; United Nations Population Division, 2019), Figure 3 reconstructs the long-term trend. Southern Voice. All mentioned the better economic opportunities, higher salaries, better education systems, and better quality of life for them and their families. However, mass media and researchers have been highlighting that this global phenomenon is very real for Malaysia since more than a decade ago. . showing that out of 107,000 Malaysians who had renounced their citizenship since independence, 79,000 were Malays. In 2009, 27.5 million was Malaysia's population. The Malaysian brain drain has been growing exponentially over the last four decades. Work tended to be orientated around achieving the personal agendas of bosses who wanted to rise in their own careers. However, mass media and researchers have been highlighting that this global phenomenon is very real for Malaysia since more than a decade ago. Randstad Malaysia's Fahad Naem said that employers could do more to bring Malaysian talents . According to the same estimates, slightly over a million Malaysian-born individuals live in Singapore (about 50 per cent of the total Malaysian diaspora worldwide), out of which close to a quarter of a million are highly skilled individuals. Malaysia brain drain has been growing exponentially in protest to decades of incapable governance and policymaking setup. Malay entrepreneurs complained about the bureaucracy in Malaysia and difficulty in getting the necessary licenses to operate, and claim it is much easier to do business in countries like Australia and New Zealand. A deficient pool of highly skilled individuals who, among other things, are the key creators of start-ups and a thriving digital ecosystem in the economy significantly shrinks the countrys potential to attract foreign direct investment and, therefore, further economic development. In other words, for the Malaysian brain drain, this is no longer even about the high salaries. Dynac Sdn. And where it came from? Its too easy to associate the brain drain with discrimination against non-Malays and an environment that prevents equality of opportunity. However, mass media and researchers have been highlighting that this global phenomenon is very real for Malaysia since more than a decade ago. This figure, even after taking into account the difference in cost of living in both countries, is not an attractive one for graduates. It would take at least one more decade, provided we radically reform our education system today. In comparison, according to the Annual Population Survey in 2018, it was seen that 99% of employees in the UK were satisfied with their job contracts that include working hours as well as salary. The second is effective potential or how much more effectively the work is done remotely as opposed to on-site presence. After all, it is the brightest, highly skilled individuals who create new business opportunities in the economy at pace with global industrial development. In fact, malaysia, singapore and hong kong have above global everage for brain drain. These are all notable efforts by key players to address the issue of Malaysia's brain drain. Besides that, persistent highly skilled workers shortage negatively impacts the availability of complementary skilled workers, less-skilled workers, entrepreneurs, and capital providers. The grass is always greener on the other side an idiom frequently used by my teachers to express that although life in the UK might seem perfect from our side of the globe, the reality of it might be far from so. The topic of brain drain has been increasingly becoming the talk of the town for Malaysians during the last few years. The Brain Ratio . A survey by Hayes Asia showed that 46% of the 900 Malaysian employees surveyed were dissatisfied with the low pay and benefits they received. To put this in another perspective, according to a paper written by. First is the theoretical potential for work to be done remotely determined by the extent to which there are tasks that require on-site physical presence, use of specialised machinery or equipment or closer, face-to-face, collaboration etc. What is brain drain? Source:https://en.wikipedia.org/wiki/Malaysian_diaspora#cite_note-ancestry2010-4. They complained their bosses were more like politicians than academics or professionals. It has long been known that a significant number of non-Malay Malaysians have migrated to other countries in search of more opportunities and a better life. Malaysia has reached a critical stage in this process of brain drain, and the government needs to formulate workforce policies that will address this matter, to ensure that it attains its goal to be a high-income country within four years. In the earlier article Malaysian Brain Drain Dont go chasing waterfalls from May 25, 2022, EMIR Research made a few critical points encapsulating the Malaysian brain drain problem: Yet, some may still express optimism that brain drain is not all bad for the home country, and positive effects may be present. In Mozambique, the government-level cooperation agreements for . And there is hardly anything we can do about this unless we seriously change how the future of our country is shaped the policymaking and governance process. Looking at all those factors listed in Figure 1, this is quite a bit to swallow and might seem like an insurmountable task to reverse. It had a profound negative systemic impact on the nation, including such afflictions as starvation of talent replacement, poor governance and policymaking, middle-income trap, low industry development (less breadth and depth), corruption etc. Malaysia's Brain Drain: Salary Isn't the Only Issue. The pandemic has shown us a potential for a hybrid model of remote working, but it might be somewhat limited. Finance and insurance (76% 86% of the time can be spent remotely), Professional, scientific and technical services (62% 75%) and. This site requires JavaScript to run correctly. While brain drain is always viewed as detrimental, there are some obvious benefits that we must discuss. Using the above two variables, the McKinsey, for example, found that among the occupations that have the highest potential for remote work are: The above is exactly the areas under the hard-to-fill Critical Occupation List by TalentCorp.
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