Malaysia Sees Shift From Brain Drain To Brain Circulation

KUALA LUMPUR, Nov 24 (Bernama) -- Malaysia’s skilled labour migration trend is now shifting from brain drain to brain circulation following several initiatives that connect the diaspora with the country’s economic opportunities and development.

Deputy Health Minister Datuk Lukanisman Awang Sauni said among the initiatives contributing to this shift was the Malaysia at Heart (MyHeart) programme, which enabled Malaysian professionals abroad to continue contributing to the domestic ecosystem without needing to return and reside permanently.

“This initiative connects the Malaysian diaspora with economic, social and cultural opportunities back home, creating sustained links and allowing the country to benefit from their expertise, networks and contributions,” he said during a Special Chambers session in the Dewan Rakyat today.

Representing the Minister in the Prime Minister’s Department, he was responding to a motion by Suhaizan Kaiat (PH-Pulai) on the need to introduce a Critical Occupation Remuneration Act in Malaysia.

Elaborating further, Lukanisman said TalentCorp had also implemented several key strategies to attract the diaspora home, including the Knowledge Worker Programme in the Johor-Singapore Special Economic Zone (JSS), which offers a flat 15 per cent tax rate for 10 years to skilled Malaysians returning to work in the area.

He said TalentCorp was also conducting the JSS Salary Benchmarking Study to assess salary structures and living costs between Malaysia and Singapore as a basis for strategies to attract and retain professionals.

In addition, he said the Returning Expert Programme (REP) remained one of the key instruments in encouraging Malaysians to return and serve the country.

“Since the implementation of REP in 2011 until October 2025, TalentCorp has received 12,050 applications… 7,627 have been approved, with 4,963 individuals having returned to work in Malaysia,” he said.

Lukanisman added that various incentives were provided under REP, including a flat 15 per cent tax rate for five years, tax exemption on personal effects, and excise duty exemption of up to RM100,000 for locally assembled (CKD) vehicles.

“Through these integrated strategies, the government is confident that the talent migration phenomenon can be reduced, ensuring Malaysia remains competitive in attracting and retaining highly skilled human capital,” he said.

Meanwhile, Lukanisman said any proposal to introduce a Critical Occupation Remuneration Act must be thoroughly reviewed within the framework of the Public Service Remuneration System (SSPA) to avoid disrupting the balance of the current remuneration structure.

He said the SSPA, which came into effect on Dec 1, 2024, was designed to enhance the attractiveness and fairness of the public service remuneration structure, while the concept of critical occupations had been applied since 1992 through the Critical Service Incentive Payment (BIPK).

“Following the implementation of the SSPA, there will be no new expansions to BIPK… as current assessments show that issues of low supply and difficult job placements in these schemes are no longer occurring at the same level,” he said.

At the same time, he said the national-level review of critical occupations had also been carried out through the Malaysia Critical Occupational List (MICOL) under TalentCorp, which serves as the main reference for skilled workforce planning.

He added that any introduction of new remuneration levels carried major fiscal implications, including effects on pension rates and other emoluments, and must be decided by technical ministries such as the Health Ministry, Higher Education Ministry, Human Resources Ministry, Works Ministry and the Science, Technology and Innovation Ministry, with input from the Finance Ministry.

“In line with public sector reform and expenditure control policies, the government does not encourage the establishment of new statutory bodies or entities unless strongly justified,” he said.

-- BERNAMA