The Reason Why Malaysians Work And Stay in Singapore
Why Are Malaysians Working in Singapore
Without a doubt it is a surety that Singapore is considered to be a country with a high quality life with minimum to no crime rate. It has a very efficient public transport and considered a superior infrastructure. This has given a chance to the citizen of its southern neighbor, Malaysia to seek residence as part of their second home. The life and career in Singapore is of superior quality with all the benefits it has to offer.
Currently, many Malaysians live in Singapore for the above mentioned reasons; being better salaries and the first world living standards. The amount of Malaysians living in Singapore has made the island earn a title as the safe haven for Malaysians.
As Singapore is considered as one of the top destinations to live, it is also an intelligent city where the paper trail in public departments has been brought down to none. Few things that encourage Malaysians living in Singapore to stay there are as follows:
1. Singapore has been ranked as the second most globalized economy with the most lucrative economy. It is considered as the financial hub of the region with a gateway to all the major economies in the world. As it caters to all the big multinational companies, the career growth has a fruitful future.
2. It has a progressive taxing system where the entire tax infrastructure is automated. It is estimated that the calculation and paying the tax often takes 30 to 60 seconds while filing your tax return online. Once your permit for residence is approved, you are automatically viable to pay tax. The tax system ranges from 0% for a SGD22000 salary per year to 20% for an income that ranges up to SGD 32,000. Individuals without a residence permit pay a flat 15% for all the income incurred in the region of our neighbor country.
3. Applying for a residence or work permit is considered fairly easy as everything is done online. In case of work permit, once your appointment letter is issued you can apply for the residence which takes a couple of day to process. Same is the case with permanent residency, once you meet the requirement you are eligible for the permit within a few days only.
4. As a Malaysian living in Singapore, it is an easy task to invest and open a business. According to the world bank, Singapore ranks number 1 with ease of opening new business, merely taking only three days to process the application. The entire process is online and your application is approved with in a few hours of paying SGD 65 as the registration fees. Once, the approval is gained you are referred to a number of agencies and business prospects for documenting your annual returns.
5. Singapore is often considered as the number 1 for the labor force in the entire world. With big companies like Google, Microsoft and Salesforce having their regional offices in Singapore it has given a huge opportunity to the Malaysians living in our neighbor country a chance to earn and brush up their skill set accordingly.
As per statistics, around 25% of the Singaporean residents have worked in the same company for almost a decade. This signifies how the working environment motivates people and provide a satisfactory work life balance.
6. Singapore is a region with very low crime rate and corruption. As it is an intelligent city, the surveillance is very head strong. It is also the most stable country with high stability.
How many Malaysians Are Working In Singapore
Singapore is a strong economic nation with the highest number of millionaires globally. Its own population is not that much and the fertility rate is decreasing. In order to keep up with their economic standards, they have given opportunity to foreigners to base in Singapore. Being a neighbor with just a bridge connecting the two countries, Malaysians made the most out of this opportunity. As per the Ministry of Human Resources Malaysia, there are around 386,000 Malaysians living in Singapore with permanent residence and working permits.
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Malaysian Engineers Working In Singapore
As we understand that the big players in Singapore are the companies from United States of America and the Great Britain that attracts the foreign workers. There are local family owned organizations, but they are not as big as the foreign investors. These are considered as the small players. As Singapore is a hub for most of the engineering firms, the benefits and pay scale are very lucrative.
In a comparison between the pay scale for engineers, Singapore pays at least twice as much as the Malaysian employers. For mechanical and electrical engineers, gross salary for a year will accumulate up to SGD 120,000 in Singapore whereas the same job description in Malaysia will only sum up to SGD 45,000 per year.
Even though, these figures are dependent on numerous factors but the difference is huge. This allow and attracts the engineers from Malaysia to work in Singapore despite a surcharge in taxes.
Similarly, when it comes to IT professionals and computer engineers, organizations based in Singapore hire with a starting salary of SGD 2500 (RM 7500) which is at least twice as much as the Malaysian employers pay.
Therefore, it is safe to assume that the experienced Malaysians working in Singapore can earn RM 200,000 to 300,000 per year compared to the RM 80,000 to RM 140,000 in Malaysia for the same job role and working hours.
Malaysian Community In Singapore
With almost 400,000 Malaysians living in Singapore with either permanent residency or work permit. In order to organize them and have a unity, a committee is formed by the name of Malaysian Association In Singapore or MASIS which was formed in 2014. The main idea of this organization is to connect and support each other. The association caters to individuals, families, students and even the corporate sector who are residing in Singapore.
It is a non-profit organization which is accredited by the Malaysian High Commission to keep the heritage of the community and the identity as Malaysian to thrive. It is actively supporting the culture, art and recreational activities and is considered as an apolitical organization.
Living In Malaysia, Working In Singapore
In order to make the most out of the benefits offered by Singapore regulations, many Malaysians are living and working in Singapore. Though, there is a bigger number of people who prefer to live in Malaysia and work in Singapore. This is usually done in order to save the amount of money they would spend while catering to the residential tax and living expense which is far more than what Malaysia has to offer. Hence, why people prefer to drive through the Johor Bahru - Singapore highway back and forth daily. The daily commute often takes up 90 minutes to 180 minutes due to the traffic jam especially during peak hours.
It is noticed that the traffic jam is usually witnessed on the road to Singapore in the morning and out of Singapore during the evening time. In terms of spending, the region of Malaysia is considered way cheaper than Singapore; but infrastructural benefits such as medical facilities, banking system and even the internet is much better in term of value in Singapore.
Malaysian Living On Singapore Border Pass
Malaysians who drive every day to Singapore are encouraged to keep a few things in mind. They are required to keep all the documentation in check such as passport and the disembarkation form. The autopass to pay highway toll into Singapore, Singaporean currency and fuel in the car are considered as a primary necessity to go bout in Singapore.
Driving into Singapore is easy and requires the following steps:
1) Once you cross Johor, there are two points through which you can cross over into Singapore; Tuas and Woodlands. There are Malaysian immigration check points where your passport is checked and some other physical checking of your vehicle.
2) Once you cross through the Malaysian immigration you are directed towards the bridge to cross-over to Singapore where your passport is examined along with your Disembarkation form.
3) Then you are directed further to pay your toll through the Autopass card which can be bought from the same location. It costs SGD 10 (RM31) for the card and a balance of SGD 4 (RM12). This card can be topped up at any convenience store such as 711.
4) Apart from the toll, there is a surcharge on foreign vehicles in Singapore. First 10 visits from a vehicle are subjected to free VEP (Vehicle Entry Permit); after that SGD35 are charged on a daily basis. This is applicable from 2am until 5pm from Monday to Friday.
5) Then you are directed to the vehicle inspection where you must declare any items that are subjected to custom duty.
These 5 simple steps and guidelines can help you drive in to Singapore daily without any hassle.
Malaysian Living In Singapore Border Crossing Time
Those Malaysians who are living or working in Singapore are subjected to face a traffic jam during their commute to go in and out of Singapore. The commute takes much more time during the weekdays as the working hours are packed with thousands of Malaysians racing to their work place in time. During weekdays, as early as 5:30am, Malaysian workers start lining up on the causeway. And in the evening, starting from 4:00pm Malaysian workers start lining up to cross through the same causeway to get into Malaysia.
Weekends are usually calm as most of the office workers are not working apart from the retailers and tourists. Keeping your working hours in check, it is advisable to consider all possibilities and manage your commute time accordingly.
Long Term Visit Pass (LTVP)
Long term visit pass (LTVP) is a type of visa that can be applied for the common law spouse or step children or others in the family who do not come under the category of dependent pass through the work visa.
It has a number of benefits and features that are stated as follows:
1) It can be applied through the employers of the visa holder.
2) Even though it has a validity of 2 years but can be renewed as many times as possible provided.
3) It can be extended as long as the work visa is valid.
4) LTVP holders are eligible to work in Singapore.
5) LTVP holders are not subjected to any quotas.
Independent Pass is often considere as the Employment pass (EP) which allows the foreigners to work in Singapore as professionals, managers and executives.
The EP is issued for a period of up to 2 years which can be renewed right after. Through the Employment Pass, you can apply for a dependent pass to have your spouse and children to live along with you in Singapore. It is advised to apply for the Employment Pass (EP) along with the dependent pass even before you reach Singapore to start your job.
It usually takes three weeks for the whole process of the independent pass to take place through different stages and departments.
ICA - Immigration And Checkpoint Authority
Immigration and Checkpoint Authority (ICA) makes sure that the borders of Singapore are safe from undesirable people and cargo by means of road, sea and air traffic. They have a number of check points in different locations such as the seaport, causeway and the airport. These checkpoints are becoming automated and contain the database of all the personals entering or exiting Singapore. The database is updated real time to keep the republic of Singapore secured and safe. They are eligible to detain you if they see any issue.