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SINGAPORE: To get to her office in Singapore on time, admin exec Gunavathi Chinasamy has to be at Johor Bahru Customs at least two hours before 10am.

And after the 29-year-old knocks off at 6pm, she reaches her Malaysian home at around 10pm. 

This has been the JB native's daily routine for nearly a decade now. Yet she would not have it any other way. 

Ms Gunavathi, who works at an employment agency, currently earns between S$2,500 and S$2,800 (US$1,837 to US$2,058) a month. At interviews for similar roles in Malaysia, she was offered around RM3,000 (US$628).

"If I’ll be paid (more) for the same amount of energy and effort that I put into work just by crossing a country two hours earlier, I think I would take that option," she told CNA.

Ms Gunavathi is not alone: More Malaysians are seeking jobs in Singapore, and for similar reasons such as the exchange rate and economic situation back home, according to recruiters.

The Malaysian ringgit has been on a downward trend since 2023 and in February fell to its lowest since the Asian Financial Crisis of the late 1990s, slipping past 4.8 against the United States dollar.

It strengthened slightly to 4.778 by 11.04am on Apr 15, and was trading at 3.513 against the Singapore dollar.

Malaysia also recorded an inflation rate of 1.8 per cent year-on-year in February, increasing from the 1.5 per cent for three consecutive months since November last year.

The final figure in February topped a 1.4 per cent forecast made by 13 economists in a recent Reuters poll.

INCREASED INTEREST

Recruitment agency Nala Employment has observed at least a 50 per cent increase in calls to its general hotline from Malaysians seeking employment, said director Jim Wee. 

Over at Cultivar Staffing & Search, internal data showed that job postings in the preceding three months attracted up to 30 per cent more Malaysian job applicants, compared with the same period a year ago.

"We reckon that rather than working in the same job for RM3,000 to RM6,000, they might as well work in Singapore for around S$3,000 to S$6,000," said managing director Zac Ng.

Malaysians seeking work in Singapore often explore sectors including retail and food services, manufacturing, engineering, industrial and technology as well healthcare, the agencies said.

Currency and economic fluctuations aside, recruiters said Singapore is often Malaysians’ "first choice" for overseas work - especially for those living in Johor Bahru - due to the ease of cross-border commuting, a robust economy, better salaries, employment opportunities and a more favourable working environment.

Last year, employment in Singapore grew by 88,400, with 83,500 of those jobs going to non-residents and especially in the construction and manufacturing sectors, according to the Ministry of Manpower’s (MOM) latest labour market report released in March.

The bulk of the increase in foreign employment was in jobs that do not "typically" fall under the types Singaporeans want to do, Manpower Minister Tan See Leng said in parliament earlier this month.

In response to CNA’s queries, MOM said it was "not unexpected" that Singapore will continue to see high labour mobility between the two countries given the close geographical location, strong trade partnerships and high cultural similarities.

"Singapore is committed to being open and welcoming to foreigners who bring in skills that are in short supply, to complement our local workforce," said a spokesperson. 

IMPACT OF MORE MALAYSIAN WORKERS

The recruitment agencies told CNA they did not foresee employers in Singapore hiring more Malaysians over locals.

More applications just means there are now "more choices" of candidates to shortlist, said Mr Ng from Cultivar Staffing & Search.

Economists also pointed to Singapore's dependency ratio ceiling (DRC), which refers to the proportion of work permit holders a firm can employ. For instance, the quota for the construction and process sectors is 83.3 per cent while that for services is 35 per cent.

Employers also have to pay a foreign worker levy for hiring non-resident workers, which rises progressively with the proportion.

Locals are therefore protected by these rules from the supposed "threat of a flood of Malaysians" seeking jobs, said Maybank economist Chua Hak Bin.

Moreover, as Singapore continues to generate more jobs than can be filled, wages should automatically be pulled up even in lower-paying jobs, with the Progressive Wage Model in place, noted Song Seng Wun, economic advisor at financial services firm CGS International Singapore.

UOB senior economist Alvin Liew pointed out that foreign labour inflows will provide "welcome relief" for many businesses in services sectors - such as in F&B, retail, administrative and support - which continue to face tight manpower conditions.

In some instances where businesses are expanding, the availability of more foreign labour could even spur domestic resident hiring, he added. 

Mr Liew also pointed to a Memorandum of Understanding signed by Singapore and Malaysia in January, to set up a new Johor-Singapore Special Economic Zone (SEZ) aimed at boosting cross-border economic connectivity between both countries.

If this becomes a reality, it will add to greater flows of labour between the two economies, helping to expand further economic activity and business opportunity for both Singapore and Johor, said Mr Liew.

There will also be more alternative accommodations for foreign workers if SEZ succeeds, he added.

For now, Malaysians like Ms Gunavathi will keep at their daily, hours-long journeys to and from work across the border.

She recalled how the first few years were "too much to handle", with the commute taking a toll. These days, she still doesn't have much time for her personal interests but Ms Gunavathi believes she's getting better at managing her day.

"I (tell myself) this is how much time I have and how am I going to make it useful," she said. "Now I can plan it well ... after eight years."

Source: https://www.channelnewsasia.com/singapore/malaysians-working-jobs-ringgit-inflation-manpower-employment-4265736