Johor must act now on pay and policies or face talent drain to Singapore when RTS starts, state economic adviser warns

The RTS Link, slated to begin operations in January 2027, will have the capacity to carry up to 10,000 passengers per hour in each direction, linking Bukit Chagar in Johor and Woodlands North in Singapore in about five minutes.

Hasni, who is also Johor’s Economic and Investment adviser, said the state government should reassess the attractiveness of entry-level salaries of around RM4,000 to RM5,000, and consider additional incentives to retain local talent.

He also proposed incentives such as lower tax rates or temporary tax exemptions for highly skilled workers in the Johor-Singapore Special Economic Zone (JS-SEZ) to enhance purchasing power and improve workforce competitiveness.

Separately, Hasni stressed the need to expedite approvals for investment-related facilities, noting that utility applications can take two to three months, creating uncertainty among investors.

“Even securing approvals for utility supply, such as water and electricity, takes time and slows the process, prompting investors to question whether there are ways to expedite it,” he said.

He added that rising property costs, policy uncertainty, including possible changes to the minimum wage, and a shortage of skilled labour are also concerns for foreign investors.

He said it is also crucial to reassess bilateral cooperation between Malaysia and Singapore to ensure a more balanced distribution of investment benefits, particularly in attracting high-value investments to Johor.

“Johor should not merely serve as a destination for low-value activities, but instead focus on high-impact sectors,” he said. — Bernama