KUALA LUMPUR, Oct 8 — Malaysian professionals could earn significantly higher working in neighbouring Singapore compared to just a median income of around RM6,000 here, according to a study, highlighting a stark wage disparity that Putrajaya is seeking to address through targeted tax incentives and wage growth initiatives.
Human Resources Minister Datuk Seri R Ramanan said in a written parliamentary reply that data from the Statistics Department’s 2025 wage survey placed the median monthly wage for professionals in Malaysia at RM6,124 ($1,430).
By contrast, a study by government agency TalentCorp showed that a majority of Malaysian professionals employed in Singapore earn between SG$4,001 (RM12,773) and SG$7,000 (RM22,348) per month.
“A 2024 study conducted by Talent Corporation Malaysia Berhad (TalentCorp) titled Push and Pull Factors Influencing Malaysians to Work in Singapore and Proposes Relevant Policy Recommendations found that 94.5 per cent of respondents cited higher salaries and better earning potential as the primary factor attracting them to work in Singapore,” the minister said.
The earnings gap is most pronounced in high-tech sectors, he added, with TalentCorp finding that skilled Malaysian professionals in Singapore can command monthly salaries exceeding SG$10,000 (RM31,926), particularly in information technology.
The Anwar government has deployed a progressive wage policy model designed to uplift workers earning below RM5,000 a month to curb talent outflow and boost local compensation.
Malaysia is also rolling out tax relief mechanisms under the Johor-Singapore Special Economic Zone (JS-SEZ), introducing a flat 15 per cent personal income tax rate for eligible knowledge workers employed by companies in the zone.
The tax incentive is aimed at inducing Singapore-based firms to relocate operations across the border to Johor, allowing businesses to optimise operational costs while offering higher salaries to local workers.
Malaysian professionals earning the national median wage of RM6,124 per month are typically subject to a standard personal income tax rate of 19 per cent.
Ramanan said Putrajaya is also utilising TalentCorp’s Returning Experts Programme which also features a flat 15 per cent tax rate as part of a broader strategy to incentivise Malaysian talent abroad to return home.