Johari: Malaysia’s chip talent retention remains sustainable despite foreign offers

Investment, Trade and Industry Minister Datuk Seri Johari Abdul Ghani speaks during the Oral Answer Session at the Third Meeting of the Fifth Session of the 15th Parliament at the Parliament Building in Kuala Lumpur on October 21, 2026. — Bernama pic

First Published: Wednesday, 21 Oct 2026 4:36 PM MYT

KUALA LUMPUR, Oct 21 — Starting salaries for junior engineers and technicians in the local chip industry scale up steadily with experience, offering sustainable career progression even as overseas markets tempt local talent with higher pay, said Minister of Investment, Trade and Industry Datuk Seri Johari Abdul Ghani today.

Addressing questions in Parliament on wage competitiveness and talent retention, Johari said entry-level salaries for junior engineers typically start around RM3,500 and can reach RM6,000 as they gain experience, while technicians can earn between RM3,000 and RM5,000 depending on tenure.

Johari acknowledged the salaries may seem nominally low when compared to what companies in countries like Taiwan or South Korea may offer, but said they must still weigh higher overseas pay against the increased cost of living in those countries.

“If compared with job offers overseas in places like the UK, Singapore, Korea, or Taiwan, salaries might be two to three times higher,” Johari said during Question Time.

“However, the cost of living in those countries will also increase accordingly.”

The Anwar administration is actively trying to position Malaysia as a key chip player by the next one or two decades, rolling out policies it said would help push the domestic semiconductor ecosystem up the value chain.

Southeast Asia’s fourth-largest economy by GDP holds a crucial role in the global transistor supply chain, but only for back-end testing and assembly. Prime Minister Datuk Seri Anwar Ibrahim had said he wants Malaysia to shift into front-end design and wafer fabrication.

Retaining skilled human capital through progressive local wage structures remains central to driving the nation’s advanced technology ambitions, but compensation in Malaysia’s industrial sector must be viewed within the context of the domestic standard of living, Johari said.

Still, local pay structures could expand significantly for specialised roles as experience grows, the minister added.