Asia Malaysia Higher foreign exchange rate attracts Malaysian workers to Singapore

Higher foreign exchange rate attracts Malaysian workers to Singapore

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The Malaysian currency, the Ringgit, is now the subject of memes and jokes on Twitter and Facebook.

Since the re-opening of Malaysia-Singapore borders, the Ringgit rate has dropped, attracting a huge number of Singaporeans to Johor Bahru’s bazaars and supermarkets.

The Ringgit was trading at RM3.16 to the Singapore dollar yesterday. It has a two-fold impact on Malaysia. One is workers from Johor are leaving to work in Singapore. The other is hourly rates are rising in Malaysia and employers are worried.

Malaysians are urging their friends to resist applying for employment with local firms on Twitter, describing them as “crap jobs” that pay little.

Some users are saying that Malaysian youngsters should cross the causeway or go international and seek employment, where firms are eager to hire young people.

According to them, the currency exchange rate between the RM and the SGD and the USD will benefit people who acquire jobs abroad.

In this one tweet, the user says, “Forget about cheapskate local companies, apply international instead. They are hiring like CRAZY!”

Nevertheless, in Johor, the reopening has caused a serious shortage of workforce in several areas of the economy.

It appears that these sectors in Malaysia are facing the ‘great resignation’ since Malaysians are abandoning their jobs in Johor for example, to work in Singapore because of the significantly greater pay when converted to ringgit.

According to news sources, hotels are experiencing personnel shortages, with many employees departing for Singapore.

The majority of hotels employ an average of 50% of their workers. Some people are unable to execute banquets and other gatherings at full capacity because to a lack of resources.

Last week, Resorts World in Singapore held a walk-in interview at a hotel in Johor to hire personnel for its Sentosa casino, and the lines were long, causing concern among Johor Bahru business owners.

Another consequence is the increase in workers’ hourly pay in Johor, which went from RM5-RM6 to RM10, and interns from hotel training institutions who were previously paid RM400 a month were offered double that amount.

Many employees are coming to Singapore since there is a huge demand for their services and the compensation is better. Food establishments in Singapore are also experiencing a labour shortage and are prepared to pay very high wages to hire Malaysians.

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