Malaysia’s median professional wage at RM6,000, but Singapore offers up to S$7,000

PUTRAJAYA, JOHOR-SINGAPORE SPECIAL ECONOMIC ZONE (SEZ), 8 OCTOBER 2026 —

Human Resources Minister R. Ramanan said in a parliamentary reply that the median monthly wage for Malaysian professionals is RM6,000, but those working in Singapore can earn between S$4,001 (RM12,773) and S$7,000 (RM22,348)—a gap the government is trying to close with wage policies and incentives.

The revelation comes as Malaysia grapples with brain drain, with skilled professionals—particularly in IT—earning more than S$10,000 (RM31,926) in Singapore according to a TalentCorp study. Ramanan acknowledged the disparity, citing the government’s Progressive Wage Policy as a key measure to lift wages for those earning below RM5,000 monthly.

The initiative includes tax incentives for professionals in the Johor-Singapore Special Economic Zone, offering a 15% flat income tax rate—compared to the 19% rate for those earning Malaysia’s median wage. Meanwhile, TalentCorp’s Returning Experts Programme extends the same tax break to Malaysian professionals abroad, alongside other benefits.

The move reflects broader efforts to boost domestic wages amid concerns that Malaysia’s compensation lags behind regional peers. However, critics have questioned whether the incentives alone can offset the pull of higher salaries abroad, particularly in Singapore’s tech-driven economy.

For now, the government’s focus remains on structural reforms—including wage hikes and tax breaks—to retain talent, though the gap in earning potential between Malaysia and Singapore persists. The next phase of policy adjustments will likely hinge on whether these measures can sustainably compete with foreign markets.

Related: Human Resources Ministry