JOHOR BARU: Data centres setting up operations in Johor should look at providing higher salaries as it is a lot cheaper to do business here than in Singapore, says Mentri Besar Datuk Onn Hafiz Ghazi.

He said that based on his discussions with officials from an artificial intelligence-based (AI) centre, which is investing billions in Johor, the cost of doing business here is about 70% lower than across the Causeway.

“It’s so much cheaper here because of the incentives given by the federal and state governments in helping to ease the way of doing business here.

“So, when they said the jobs being offered here are about RM4,000 while they pay S$4,000 (RM14,000) in Singapore, I told them that they should raise the pay levels here,” he said.

Onn Hafiz expressed confidence that the setting up of the Special Economic Zone (SEZ) and the Special Financial Zone here would help mitigate the issue of locals seeking employment in Singapore.

He stressed that salaries and the exchange rate are among the main reasons for people wanting to work in the island republic.

“I am sure with these two zones in the state, salaries will definitely go up, and this would allow our locals to earn more in Johor,” he said during a dialogue session in conjunction with the first-year anniversary of the Madani Economy at Universiti Teknologi Malaysia here.

Onn Hafiz also said that although the signing of the SEZ agreement with Singapore will only be at the end of the year, there is already a lot of interest from investors.

Johor, he added, is working towards becoming a developed state by 2030.

Meanwhile, Melaka Chief Minister Datuk Seri Ab Rauf Yusoh, who was also one of the panellists at the session, said his state is committed to the success of the Southern Gateway Economic Corridor with Johor and Negri Sembilan.

“Tourism will be among the focus areas with Negri Sembilan while we hope to develop the economy along the coastal areas with Johor,” he said.

https://www.thestar.com.my/news/nation/2024/08/18/data-centres-urged-to-provide-higher-salaries