Misconception to think Johor-Singapore SEZ will provide cheap labour, says SMF

[SINGAPORE] Manufacturers should not assume that the Johor-Singapore Special Economic Zone (JS-SEZ) will provide access to significantly cheaper labour, said Singapore Manufacturing Federation (SMF) president Lennon Tan.

Malaysia’s labour authorities expect incoming businesses to pay wages that are about two-thirds of those in Singapore, or roughly RM5,000 (S$1,528), he noted in an interview with The Business Times. 

“People think Johor offers cheap labour and cheap land,” he pointed out. “Cheap land, yes, compared to Singapore. But cheap labour, no – Malaysia does not welcome labour-intensive industries.”