What is the projected impact on Visit Johor Year 2026 due to staff shortages?

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Staff Shortages Threaten Visit Johor Year 2026 Targets

The current acute staff shortage in Johor's hospitality sector poses a significant threat to the success of Visit Johor Year 2026, potentially hindering the ability to accommodate the projected 12 million visitors. This challenge is primarily driven by the lure of higher wages in Singapore's hospitality industry, exacerbated by the strong Singapore dollar.
Loss of Trained Personnel to Singapore

Johor hoteliers are finding it increasingly difficult to retain staff, particularly those who have undergone training, as they are being recruited by Singapore's hospitality sector. This phenomenon is especially pronounced in Johor Baru due to its proximity to Singapore, enabling a daily commute. The disparity in currency exchange rates means that a salary comparable to Malaysia's minimum wage in Singapore translates to a significantly higher income upon conversion, making it an attractive proposition for Malaysian workers.
Impact on Service Delivery and Visitor Experience

The growing staff shortage, which has been a persistent issue since the Covid-19 pandemic, raises concerns about the capacity of hotels to provide the expected level of service for the anticipated 12 million domestic and international visitors during Visit Johor Year 2026. Hoteliers have expressed that this situation makes it challenging to meet the demands of such a large influx of tourists, potentially impacting the overall visitor experience and the reputation of Johor as a tourist destination.
Financial Disparities Driving Departures

A key factor contributing to the staff drain is the significant difference in remuneration. In Johor, newly-trained staff typically earn around RM1,500 per month, which is Malaysia's current minimum wage. While the announced minimum wage increase to RM1,700 for Budget 2025 is set to take effect from February 1 next year, it remains considerably lower than what can be earned in Singapore. Hotel workers in Singapore earning the equivalent of the new Malaysian minimum wage in Singapore dollars would see their income convert to nearly RM5,000 back home, a substantial difference that incentivizes Malaysian workers to seek employment across the border.
Urgency for Solutions Ahead of 2026

With Visit Johor Year 2026 less than a year and a half away, the Malaysian Association of Hotels (MAH) Johor Chapter has highlighted the urgent need to address this staff shortage. Proximity to Singapore makes Johor Baru and southern Johor hotels particularly vulnerable to this issue, as it facilitates a daily work commute. While some initiatives like cross-exposure programmes within hotel groups and service awards are being explored to improve staff retention, the industry acknowledges that these measures may not be sufficient to counteract the financial pull of the Singaporean market.

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What is the projected impact on Visit Johor Year 2026 due to staff shortages?

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