Deputy health minister says Malaysia seeing shift from brain drain to ‘brain circulation’

Deputy health minister Lukanisman Awang Sauni said TalentCorp has implemented several key strategies to attract the diaspora home. (Bernama pic)

PETALING JAYA: Malaysia’s skilled labour migration trend is shifting from a brain drain to “brain circulation” following several initiatives that connect the diaspora with the country’s economic opportunities and development, says deputy health minister Lukanisman Awang Sauni.

Lukanisman said the initiatives contributing to this shift included 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, according to Bernama.

“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.

Lukanisman said TalentCorp has implemented several key strategies to attract the diaspora home, including the Knowledge Worker Programme in the Johor-Singapore special economic zone (JS-SEZ), which offers a flat 15% tax rate for 10 years to skilled Malaysians returning to work in the area.

He said TalentCorp is also conducting a salary benchmarking study in the JS-SEZ to assess salary structures and living costs as a basis for strategies to attract and retain professionals.

According to him, the Returning Expert Programme (REP) remains one of the key instruments in encouraging Malaysians to return and serve the country, with 4,963 individuals having returned to work in Malaysia under this plan since it was introduced in 2011.

He said incentives provided under REP include a flat 15% tax rate for five years, tax exemption on personal effects, and excise duty exemption of up to RM100,000 for locally assembled 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.

In April, digital minister Gobind Singh Deo said Malaysia is facing a critical brain drain problem, with 1.86 million Malaysians having left the country over the past 50 years.

He said these 1.86 million Malaysians represent 5.6% of the population, higher than the global average of 3.6%.

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