KUALA LUMPUR, July 29 — The Johor government is seeking higher salaries for Malaysians in return for the lower service and infrastructure costs that investors enjoy in the state, said Menteri Besar Datuk Onn Hafiz Ghazi.
According to a Berita Harian report, the MB said the discussions were ongoing and covered several sectors for which the proposal was reasonable.
“After providing all the infrastructure facilities, the cost of doing business in Johor is also 70 per cent cheaper than in neighbouring countries,” he was quoted as saying.
"Why can't we raise the wages for our young people? We are negotiating and working towards this. For example, in the artificial intelligence (AI) sector, the starting salary in Johor is RM4,000, whereas in Singapore it is S$4,000 (RM13,838).
"Salaries (here) need to be 50 per cent (of what is paid in Singapore), meaning RM7,000 in Johor.”
The MB said the government was investing significantly in developing the infrastructure for the proposed Johor-Singapore Special Economic Zone (JS-SEZ).
Onn Hafiz said he was already negotiating with companies from Singapore, the UK, Australia, China, and Europe that were considering investing in the state.
Previously, the MB also announced the development of a one-stop talent hub to provide the manpower needed to drive the JS-SEZ and other proposed developments.
Johor has become a focal point of investment and development in Malaysia, with planned data hubs by global tech giants making the state poised to become the country’s AI capital.