KUALA LUMPUR, August 2 — The Johor government, led by Menteri Besar Datuk Onn Hafiz Ghazi, is pushing for increased salaries for Malaysians as part of a broader strategy to balance the state’s lower service and infrastructure costs for investors. The proposal, currently under negotiation, aims to enhance local wage standards in various sectors while continuing to attract foreign investment. Onn Hafiz highlighted that Johor’s cost of doing business is 70 percent lower than in neighboring countries, and is advocating for salary adjustments to reflect this advantage.
In sectors like artificial intelligence, where starting salaries in Johor are significantly lower than in Singapore, the MB envisions a rise in wages to better align with regional standards. For instance, he suggested that starting salaries in Johor should increase to RM7,000, compared to RM4,000 currently offered. The initiative is part of Johor’s broader plan to develop the Johor-Singapore Special Economic Zone (JS-SEZ), and it includes building a one-stop talent hub to support future growth and development. The state is actively engaging with international companies to bolster its position as Malaysia’s future AI capital.
