Malaysia facing severe brain drain with 1.86 million already gone, says digital minister
GEORGE TOWN, April 29 — Malaysia is facing a critical brain drain problem with 1.86 million Malaysians having left the country over the past 50 years, said digital minister Gobind Singh Deo.
Gobind said the 1.86 million Malaysians represented 5.6 per cent of the population, which is higher than the global average of 3.6 per cent.
'As such, the Madani government has developed several strategies to not only strengthen the nation's talent ecosystem, but to retain them,' he said during his keynote address at the launch of 42 Penang Campus here today.
He cited the Malaysia Digital Economy Blueprint (MDEB) — which covers the development of digital talent — as an example.
'Then we have the National Semiconductor Strategy which aims to train 60,000 high-skilled semiconductor engineers,' he said.
He said the Johor-Singapore Special Economic Zone is also projected to create 100,000 high quality job opportunities in key sectors, and attract skilled knowledge workers through a 15 per cent tax rate for 10 years.
'The ministry, through our agencies, and industry players have also joined forces in creating talents and stop the talent outflow,' he said.
'In addition to keeping our homegrown talents, we are also keen on attracting foreign talents through special visa passes,' he added.
Gobind said the government is committed to creating real opportunities in the tech space so that Malaysians can take the lead in artificial intelligence (AI), and other digital innovations.
Digital investments contributed significantly to Malaysia's GDP growth of 5.1 per cent in 2024, he said.
He added that total approved investments under Malaysia Digital amounted to RM163.6 billion — a 250 per cent increase from 2023 — and created over 48,000 jobs, representing a 109 per cent rise compared to the previous year.
He also said that institutions like 42 Malaysia can assist Malaysia in its quest to accelerate the country's digital progress.
To note, 42 Penang is a peer-to-peer, project based and tuition-free model for students to master software development, cybersecurity and artificial intelligence through real-world projects, collaborative problem solving and mentorship from industry leaders.
Meanwhile, in his speech, Penang chief minister Chow Kon Yeow said the state is intensifying efforts through initiatives like the Creative Digital District, Penang Silicon Design @5km+ and the Digital Economy Master Plan 2.0, which will drive investments in cloud computing, cybersecurity, AI and smart manufacturing.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
2 hours ago
- The Star
SST revision, expansion to have minimal impact on construction, consumer segment
KUALA LUMPUR: The upcoming revision and expansion of Sales and Service Tax's (SST) scope is expected to have limited impact on the construction and consumer segments, according to Kenanga Investment Bank Bhd . However, the exercise is likely to have an adverse impact on the Real Estate Investment Trust (REIT) sector, as well as financial services and private healthcare, it said in a note today. It said the construction and consumer sectors were likely to be more insulated, noting that the changes to the SST were drafted with the welfare of the majority of Malaysians in mind, particularly in the case of the consumer segment. It also welcomed the fact that the revised SST framework remained mindful of potential cascading effects along the business supply chain. Meanwhile, Hong Leong Investment Bank Bhd believes that the expanded SST is a non-event for markets, as it is targeted in nature and deliberately structured to avoid essential goods and services. "While sectors such as construction, banking, and healthcare may appear exposed, we expect any profit impact to be negligible," it said in a separate note. It noted that in terms of construction services, most contract structures allow for cost pass-through mechanisms, and new project tenders are likely to be repriced, transferring the incremental cost to the end-customer. For financial services, it does not expect any material impact on banks, as they primarily serve as tax collection agents on behalf of the government. "Nevertheless, we believe demand for these services will stay fairly inelastic, given limited substitutability," it added. - Bernama
The Sun
3 hours ago
- The Sun
Sales Tax rate revision, Service Tax scope expansion to be effective
PUTRAJAYA: The government will implement a revision of the Sales Tax rates and an expansion of the Service Tax's scope effective from July 1, 2025, in order to strengthen the country's fiscal position by increasing revenue and broadening the tax base. Finance Minister II Datuk Seri Amir Hamzah Azizan said these measures are aimed at improving the quality of the social safety net without burdening the majority of Malaysians. 'The government is committed to continuing the reforms under the MADANI Economy framework. To ensure that the majority of people are not affected by the Sales and Service Tax (SST) revision, the MADANI government is taking a targeted approach to ensure that basic goods and services are not taxed. 'In addition, various facilities are also being provided to mitigate the impact on micro, small, and medium enterprises (MSMEs),' he said in a statement today. Amir Hamzah said that complementing the MADANI Government's efforts to stimulate the economy and strengthen the social safety net, the additional revenue from the SST enhancements will go towards further public service improvements. These include increasing the amount of cash assistance to the people, as well as strengthening basic infrastructure and the delivery of public services. 'This additional revenue can benefit the entire country without raising the burden on the majority of the people,' he said. Amir Hamzah said the SST review has undergone the process of engagement with stakeholders, particularly industry associations and tax agents. 'Legal preparations also took into account feedback and input from the industry to ensure that the majority of the people are not affected and the impact on the industry is minimised,' the minister said. According to the statement, the Sales Tax rate will remain unchanged for essential goods consumed by the people, while a rate of either five or 10 per cent will be imposed on non-essential or discretionary goods. The scope of the Service Tax will be extended to include new services such as rental or leasing, construction, finance, private healthcare, education, and beauty services. This expansion is accompanied by selective exemptions to avoid double taxation and to ensure that certain essential services for Malaysian citizens are not taxed. Amir Hamzah said the government has also taken into account the need for legal compliance by companies that are subject to the SST. 'In line with that, for companies that take steps to comply with the SST legal requirements, no legal action or penalty will be imposed up to Dec 31, 2025,' he said. Under the Sales Tax revision, the MADANI Government is maintaining a rate of zero per cent on essential daily goods such as rice, chicken, beef, fish, vegetables, sugar, cooking oil, medicine, books, newspapers and pet food, as well as basic construction materials and agricultural inputs such as fertilisers, pesticides and machinery. This approach is aimed at ensuring that there is no direct impact on the cost of living for the majority of people and inflation rates remain manageable. Meanwhile, a five per cent Sales Tax is imposed on selected discretionary items such as king crab, salmon, cod, imported fruits, essential oils, and silk fabrics, while premium items such as racing bicycles and antique hand-painted artworks are subject to a rate of 10 per cent.
The Sun
3 hours ago
- The Sun
Sales tax rate revision, service tax scope expansion to be effective July 1, 2025
PUTRAJAYA: The government will implement a revision of the Sales Tax rates and an expansion of the Service Tax's scope effective from July 1, 2025, in order to strengthen the country's fiscal position by increasing revenue and broadening the tax base. Finance Minister II Datuk Seri Amir Hamzah Azizan said these measures are aimed at improving the quality of the social safety net without burdening the majority of Malaysians. 'The government is committed to continuing the reforms under the MADANI Economy framework. To ensure that the majority of people are not affected by the Sales and Service Tax (SST) revision, the MADANI government is taking a targeted approach to ensure that basic goods and services are not taxed. 'In addition, various facilities are also being provided to mitigate the impact on micro, small, and medium enterprises (MSMEs),' he said in a statement today. Amir Hamzah said that complementing the MADANI Government's efforts to stimulate the economy and strengthen the social safety net, the additional revenue from the SST enhancements will go towards further public service improvements. These include increasing the amount of cash assistance to the people, as well as strengthening basic infrastructure and the delivery of public services. 'This additional revenue can benefit the entire country without raising the burden on the majority of the people,' he said. Amir Hamzah said the SST review has undergone the process of engagement with stakeholders, particularly industry associations and tax agents. 'Legal preparations also took into account feedback and input from the industry to ensure that the majority of the people are not affected and the impact on the industry is minimised,' the minister said. According to the statement, the Sales Tax rate will remain unchanged for essential goods consumed by the people, while a rate of either five or 10 per cent will be imposed on non-essential or discretionary goods. The scope of the Service Tax will be extended to include new services such as rental or leasing, construction, finance, private healthcare, education, and beauty services. This expansion is accompanied by selective exemptions to avoid double taxation and to ensure that certain essential services for Malaysian citizens are not taxed. Amir Hamzah said the government has also taken into account the need for legal compliance by companies that are subject to the SST. 'In line with that, for companies that take steps to comply with the SST legal requirements, no legal action or penalty will be imposed up to Dec 31, 2025,' he said. Under the Sales Tax revision, the MADANI Government is maintaining a rate of zero per cent on essential daily goods such as rice, chicken, beef, fish, vegetables, sugar, cooking oil, medicine, books, newspapers and pet food, as well as basic construction materials and agricultural inputs such as fertilisers, pesticides and machinery. This approach is aimed at ensuring that there is no direct impact on the cost of living for the majority of people and inflation rates remain manageable. Meanwhile, a five per cent Sales Tax is imposed on selected discretionary items such as king crab, salmon, cod, imported fruits, essential oils, and silk fabrics, while premium items such as racing bicycles and antique hand-painted artworks are subject to a rate of 10 per cent.
