Business group proposes tax breaks and work visas to retain talent
PETALING JAYA: Immediate action should be taken to stem the growing trend of skilled Malaysians seeking employment overseas, says the Chinese Chamber of Commerce and Industry of Kuala Lumpur and Selangor (KLSCCCI).
Its president Datuk Ng Yih Pyng said the brain drain is a critical issue, particularly as Malaysia continues to attract substantial foreign investments but struggles with a shortage of local talent.
Ng emphasised the need for comprehensive measures in Budget 2025 to retain skilled professionals in the country.
“Last year, Bank Negara said nearly 500,000 Malaysians, mostly skilled professionals, were working overseas.
“To become a global leader in high-tech industries, addressing this brain drain is crucial,” he said at the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) 78th annual general meeting here yesterday, which was attended by Prime Minister Datuk Seri Anwar Ibrahim.
Ng proposed introducing tax breaks and work visas as incentives to attract and retain talent within the country.
He suggested the government explore policies to encourage foreign graduates from Malaysian institutions to begin their careers here.
“By granting work visas to foreign graduates in specialised areas, we can enhance our workforce and stimulate economic growth.
“This initiative should focus on roles that are challenging to fill, ensuring our local talent are not sidelined,” he added.
Ng spoke of the potential benefits of such policies for the education sector, saying that offering career opportunities to foreign students post-graduation would make Malaysia a more attractive destination for international education.
“This strategy not only tackles the brain drain but also solidifies Malaysia’s role as a hub for skilled professionals, promoting regional cooperation and advancement during our Asean leadership,” he said.
Beyond addressing the talent shortage, he called for additional funding in Budget 2025 to support the growth of small and medium enterprises (SMEs), which are pivotal to Malaysia’s economy.
He proposed increasing grant support and creating more flexible financing options for businesses in key sectors such as manufacturing and services.
“We recommend additional funding in Budget 2025 to further drive digital integration and boost efficiency.
“Establishing clear guidelines and a proper follow-through process will ensure these grants are accessible and utilised effectively,” he added.
Ng expressed gratitude for the government’s ongoing support for SMEs, particularly through initiatives like the SME Digitalisation Grant, but stressed that more needs to be done to bolster their resilience in the face of rising costs.
“Providing tax cuts and grants to SMEs can help ease financial pressures and promote job creation.
“This will enable SMEs to invest in new technologies, expand operations, and remain competitive locally and globally,” he said.
