If your salary is less than 10k, are you even an expat?
So we have all probably read last weeks news that the Malaysian government is currently looking into plans to stop expatriates from working in jobs with salaries below RM10,000.
Last year, there were a total 117,000 expatriates working in the country. The government wants to ensure more Malaysians could fill up jobs under the RM10,000 threshold.
In most cases, people migrate to earn more than the wage they earn back home and therefore hopefully living a more comfortable life. Malaysia's currency is not one of the strongest in the world and anybody intending to save money here to retire elsewhere is going to be disappointed.
Malaysia is a great place to retire if you are bringing in money from overseas or if you are earning around the five-figure mark to ensure a comfortable and better lifestyle than back home. Anything less than that for someone here temporarily is not going to be worth much elsewhere in the long run.
So is it fair to say that those expats taking up the jobs below RM10,000 are not here for long but rather are in the country for the experience but are struggling to save anything worth bringing back home? As the reality is that most expats working under RM10,000 will not be able to stay on indefinitely on just an employment pass.
From another angle, an expat should be bringing in some sort of value to justify 'taking' jobs from the locals. Is it fair to say that the jobs below this figure can actually be done by the local workforce and it is only fair that expats intending to live in Malaysia should be on higher income wages?
So does this news have much affect on the majority of high income expats and those that are intending to reside in Malaysia for long?
Click here to learn more about migrating to Malaysia on a long-term retirement visa!