Malaysia’s brain drain is harming its economic potential

Malaysia’s brain drain is a longstanding challenge to its ambition to become a high-income economy. A large diaspora, much of it concentrated in Singapore, includes a significant number of skilled workers. Their departure deprives domestic firms of expertise and weighs on productivity growth. The government has introduced tax incentives to encourage skilled Malaysians to return, but these are unlikely to overcome large wage gaps and more limited career opportunities at home.