Challenges and Solutions in Retaining Talent in Malaysia

Malaysia workers on Woodland Causeway; photo taken from The Straits Time

I'm not certain when it began, but the issue of talent outflow has become a recurring topic of discussion within Malaysia. Older generations encourage their children not to settle and build their careers locally after graduating, while university students are eager to explore better opportunities abroad. So, what are the underlying reasons causing our university graduates to hesitate about staying within the country?

For a nation that prides itself on rapid development, the phenomenon of talent outflow is far from being a source of pride. This is especially true in the post-pandemic era, where Malaysia is in dire need of retaining its talents to drive progress across various sectors. According to the 2023 World Talent Report released by the IMD (International Institute for Management Development), Malaysia's international ranking has seen a consistent decline over recent years, sliding from the 16th position in 2019 to the 33rd spot this year among 64 countries and regions. In the Asia-Pacific region, it currently holds the sixth position.

IMD classifies the talent report into three key areas: "Investment and Development of Talent," "Appeal," and "Readiness." Concerning "Attracting and Retaining Talent," Malaysia has managed to climb to the 30th position, showing a noteworthy improvement of five places compared to the preceding year. In the "Investment and Development of Talent" category, Malaysia holds the 40th position globally, while in "Talent Readiness," it stands at the 26th place. Both of these global rankings have experienced a slight dip, with a decrease of one place and six places, respectively.

Photo captured from IMD 2023 World Talent Report

Mustapha Sakmud, the Deputy Minister of Human Resources, disclosed that while the trend of Malaysians moving overseas is on a decline, the percentage of Malaysians residing abroad returning to their home country is almost negligible. As per the Ministry of Human Resources' data, Singapore boasts the highest number of Malaysian workers, with almost a million individuals, followed by Australia, the United States, the United Kingdom, and Canada. These Malaysians are predominantly involved in professional fields such as oil and gas, electricity, financial services, and sales.

Mustapha Sakmud forthrightly acknowledged that the departure of skilled professionals poses a hindrance to economic development, exacerbates the shortage of experts, diminishes the country's competitiveness, and decelerates the nation's development and industrialization process. The factors leading to talent outflow in Malaysia are rooted in social inequality, dim employment prospects within the country, and salary concerns.

Prime Minister Datuk Seri Anwar has also acknowledged that Malaysia is witnessing an exodus of top talents. The government is actively exploring strategies to entice skilled Malaysians to return to contribute to the nation and address the imminent threat of talent outflow.

Prime Minister Datuk Seri Anwar Ibrahim; photo taken from Anwar Ibrahim

Chinese student Liu Yi Ke, who is currently pursuing a Bachelor's degree in Mass Communication at Taylor's University, shared her intention to return to China upon graduation, citing familial ties as one motive and language barriers as another. Despite her admission of spending several years in Malaysia, she expressed surprise at the disparities in urban and rural planning within the country. Furthermore, she conveyed her disappointment regarding Malaysia's public transportation infrastructure, deeming it inconvenient.

"I've noticed a significant developmental divide between Kuala Lumpur's city center and the more remote areas. It feels like two different worlds. Moreover, the transportation system in the Klang Valley region is far from convenient," Liu stated.

As for Ho Yi Pei, a first-year student pursuing studies in Biotechnology, she articulated her plans to explore opportunities abroad post-graduation. According to her current blueprint, she aspires to pursue a Master's degree in the United Kingdom and subsequently seek employment in countries like the UK or Singapore. Her rationale lies in the belief that finding relevant job opportunities within her field in Malaysia is challenging. Even if employment is secured, the salary and opportunities for career advancement remain markedly limited.

"After completing my Master's degree, I'll decide where to pursue my career. There's a high likelihood that I'll opt for Singapore because it's a daunting task to find work in our field within Malaysia, while salaries are more lucrative and I feel a greater sense of appreciation there," Ho shared.

In considering the perspectives of the interviewees, it becomes evident that, beyond the three primary reasons cited by the minister, other factors, such as the devaluation of the Malaysian currency, disillusionment with government policies, and deficiencies in the country's public infrastructure, play a significant role in driving skilled individuals away.

To put it plainly, everyone aspires to stay in their homeland, make a meaningful contribution to their nation, and witness their country's progress. Nonetheless, if politicians fail to diligently pursue economic development and value the nation's talent, and instead concentrate on power struggles and vote-catching tactics, our beloved Malaysia will inevitably remain within the category of developing nations.