The Allure of Singapore's Job Market

Gunavathi Chinasamy, a 29-year-old Malaysian administrative executive, earns between S$2,500-2,800 (US$1,845-2,067) per month in Singapore, significantly more than the RM3,000 (US$668) she would make in Malaysia. Similarly, Lee Yen Nee, a 36-year-old economics researcher, sees Singapore as a platform to secure her financial future, potentially enabling an early retirement.

The trend is not isolated. Job applications from Malaysians in Singapore doubled during the December 2023-January 2024 period compared to the previous year, according to recruitment agency ManpowerGroup Singapore. Cultivar Staffing & Search noted a 30% increase in Malaysian applicants for job postings in the first quarter of 2024.

Singapore's Superior Retirement System

Singapore's Central Provident Fund (CPF) ranks fifth globally in Mercer's retirement system index, compared to Malaysia's 32nd position. Both systems offer interest rates exceeding 2%, but a Khazanah Research Institute report found that over 90% of Malaysian EPF members under 30 lack sufficient savings for a comfortable retirement.

Chin Shyong, a 39-year-old Malaysian working in Singapore, highlights the inadequacy of the EPF, explaining why many Malaysians continue working past retirement age.

Economic Factors and Job Opportunities

Singapore's strong economy, higher salaries, and better job opportunities attract Malaysians. A 2022 Malaysian government study revealed that two-thirds of Malaysians in Singapore earn between S$1,500-3,599 monthly, with 20% making S$3,600-$9,999. In contrast, 65% of Malaysian workers earn RM3,850-9,890 monthly, and 20% make RM3,850 or less.

Slow wage growth in Malaysia, unable to keep pace with rising living costs, has diminished the earning power of its workforce. Consequently, Malaysia has some of the lowest household savings for low and semi-skilled workers, according to the World Bank.

For Malaysians, seeking employment abroad, particularly in Singapore, is a strategic move to enhance retirement readiness, according to Chen Rupeng, Mercer's Head of Retirement for Asia.