RTS Link: Johor Must Refine Strategy To Tackle Skilled Labour Outflows

BUSINESS

JOHOR BAHRU, April 12 (Bernama) -- Johor must refine its cross-border economic strategy and sharpen policy clarity to address the outflow of skilled labour ahead of the planned launch of the Rapid Transit System (RTS) Link early next year.

Johor Economic, Tourism and Cultural Office (JETCO) Singapore Executive chairman Datuk Seri Hasni Mohammad said the RTS Link, which will connect Johor Bahru and Singapore, is set to boost cross-border mobility and could accelerate the migration of skilled workers from Johor to the city-state.

“Previously, these workers had to wake as early as 4 am and endure congestion crossing the Johor Causeway by bus or motorcycle. With the RTS Link, travel will be much easier, which could encourage more skilled workers to opt for jobs in Singapore,” he told Bernama recently.

He said the issue was discussed at a recent JETCO meeting in Singapore, attended by representatives from the Malaysian embassy, the Ministry of Investment, Trade and Industry (MITI) and the Malaysian Investment Development Authority (MIDA).

Currently, about 400,000 Malaysians commute daily across the Johor Causeway to work in Singapore.

The RTS Link, slated to begin operations in January 2027, will have the capacity to carry up to 10,000 passengers per hour in each direction, linking Bukit Chagar in Johor and Woodlands North in Singapore in about five minutes.

Hasni, who is also Johor’s Economic and Investment adviser, said the state government should reassess the attractiveness of entry-level salaries of around RM4,000 to RM5,000, and consider additional incentives to retain local talent.

He also proposed incentives such as lower tax rates or temporary tax exemptions for highly skilled workers in the Johor-Singapore Special Economic Zone (JS-SEZ) to enhance purchasing power and improve workforce competitiveness.

Separately, Hasni stressed the need to expedite approvals for investment-related facilities, noting that utility applications can take two to three months, creating uncertainty among investors.

“Even securing approvals for utility supply, such as water and electricity, takes time and slows the process, prompting investors to question whether there are ways to expedite it,” he said.

He added that rising property costs, policy uncertainty, including possible changes to the minimum wage, and a shortage of skilled labour are also concerns for foreign investors.

He said it is also crucial to reassess bilateral cooperation between Malaysia and Singapore to ensure a more balanced distribution of investment benefits, particularly in attracting high-value investments to Johor.

“Johor should not merely serve as a destination for low-value activities, but instead focus on high-impact sectors,” he said.

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