Malaysia encourages remote contributions from its overseas diaspora to combat brain drain, but experts warn deeper domestic reforms are still needed
PETALING JAYA: PETALING JAYA: Malaysia is rethinking how it taps its overseas talent. Rather than relying solely on the permanent return of skilled Malaysians, the country is increasingly encouraging remote and flexible contributions – a necessary evolution, experts say but one that cannot replace deeper structural reforms at home.
Universiti Kebangsaan Malaysia international relations and strategy studies senior lecturer Dr Aizat Khairi said Malaysia’s diaspora – estimated at 1 to 1.2 million, many highly skilled – makes relying on physical return alone unrealistic.
Initiatives such as TalentCorp’s “brain circulation”, the Returning Expert Programme (REP) and the MyHeart portal reflect a more pragmatic approach, allowing Malaysians abroad to contribute without relocating.
“Remote contribution is most effective for mentoring, short advisory roles, market access, research collaboration and project-based work, which don’t require relocating,” he said.
However, Aizat cautioned that without addressing domestic issues such as wage gaps, governance and rigid labour markets, the impact remains limited.
He described remote engagement as a useful tool to maintain professional and emotional ties to Malaysia and slow talent loss – but not a complete solution.
He urged policymakers to recognise that migration today is increasingly circular.
“Malaysians may leave, return and leave again at different stages of life, and policies should be designed with this flexibility in mind,” he said.
He recommended clearer pathways for short-term return, such as visiting fellowships, sabbaticals and fixed-term postings, and called for modernising tax and social protection rules to let remote workers contribute without penalties.
“Attracting global firms that support hybrid work could allow Malaysians to work locally for foreign employers,” he added.
He also suggested more robust digital platforms linking diaspora skills to national needs, measuring success through mentorships, joint ventures and co-authored research.
Aizat identified wage and opportunity gaps – especially compared with Singapore, limited career progression, perceptions of weak meritocracy and dissatisfaction with governance, cost of living and public services as key drivers pushing Malaysians abroad.
Pull factors overseas include higher salaries and stronger professional ecosystems in countries such as Singapore, Australia, the US, and the UK.
Despite this, many Malaysians remain closely connected to home through family, remittances, property investments and diaspora networks.
He also said Malaysia’s single-citizenship policy limits long-term diaspora engagement, forcing skilled migrants to choose between foreign citizenship and ties to Malaysia.
“Easing re-entry for former citizens with special residence visas or flexible tax and property rules would help,” he said.
Citing international examples, he pointed to India’s Overseas Citizenship scheme, China’s high-impact expert programmes and Ireland’s Global Irish strategy, which leverages diaspora networks for investment and market access.
“What Malaysia needs is a clear, long-term diaspora strategy with measurable goals, tiered engagement and professionalised institutions closely linked to economic and foreign policy priorities,” Aizat said.
Economist Doris Liew added that while Malaysia’s labour market appears strong, structural weaknesses such as stagnant wages, limited career growth and a mid-skilled workforce are driving top talent abroad.
“Chronic low wages and weak career ladders mean Malaysia increasingly retains average performers, while its more productive workers leave,” she said, noting that rigid workplaces and low flexibility are out of step with global standards.
She said these constraints directly affect industrial competitiveness, with domestic firms struggling to move into higher-value production and foreign investors reconsidering Malaysia.
Compounding the problem is an education and training system that fails to meet modern industry needs, leading to persistent skill shortages in sectors such as advanced manufacturing and digital services.
While diaspora-driven investment and knowledge transfer can accelerate upskilling, Liew said broad-based reform in education, workforce development and TVET is essential for sustaining Malaysia’s economic ambitions.
