Johor negotiates to increase wage rates with investors

KUALA LUMPUR: The state government is in discussions with investors to raise the wage rates for local workers employed in the state’s investment areas.

According to Berita Harian, Johor Chief Minister Datuk Onn Hafiz Ghazi stated that several employment sectors are being reviewed for higher and more reasonable wages.

He noted that this move aims to attract young people to work in their home state, which would also help alleviate congestion at the Johor Causeway at the Sultan Iskandar Building (BSI) and the Second Link at the Sultan Abu Bakar Complex (KSAB) on a daily basis.

“Once we have provided all the necessary infrastructure, the cost of doing business in Johor is 70 percent cheaper than in neighboring countries.

“Why can’t we raise wages for the youth? We are negotiating and working towards this. For example, in the artificial intelligence (AI) sector, starting wages in Johor are RM4,000, while in Singapore, it’s SGD$4,000.

“If such wages can be paid in Singapore, why can’t we offer slightly higher wages in Johor? We are currently examining several employment sectors.

“Wages need to be adjusted by 50 percent, meaning RM7,000 in Johor, if SGD$4,000 is paid to workers in Singapore. High wages are a major attraction,” he said.

He made these remarks while speaking at the official launch of the Mega Career Program Johor 2024 (Gegar 2024) at the MBJB Arena Larkin Indoor Stadium yesterday.

Further, Onn Hafiz mentioned that to successfully implement the JS-SEZ, the state government is providing all necessary facilities to encourage investors to come and do business here, including reducing bureaucratic red tape.

“Investors only need 12 months from paperwork to the construction of their factories.

“I am negotiating with investors from Singapore, the United Kingdom, Australia, China, and Europe, and they are satisfied with the efforts to facilitate their investment here,” he said.

In May, Onn Hafiz stated during the Second Meeting of the Johor State Legislative Assembly’s 15th session that the JS-SEZ is expected to be developed in the Iskandar Malaysia and Pengerang areas, covering an area of 3,505 square kilometers.

Onn Hafiz also mentioned that Johor has proposed 16 economic sectors that are expected to provide socio-economic benefits, including the electrical and electronics sector, medical and pharmaceutical industries, aviation, specialized chemicals, logistics, health, and education.