Silicon Malaysia: Rising Living Costs Threaten Employment Dreams in Kulim

In Kulim, the heart of ‘Silicon Malaysia,’ workers are facing steep living costs despite booming investments in the semiconductor sector. Local recruiter Azmin highlights a growing disparity between promises of job growth and actual opportunities, as property values skyrocket. Major corporations like Infineon and AT&S have made significant investments, yet many factory employees find it hard to make ends meet.

In Kulim, known as the heart of ‘Silicon Malaysia,’ workers find themselves in a precarious situation as living expenses continue to climb. Despite promised investments and growth in the tech sector, many factory employees struggle to meet their basic needs due to rising rent and costs of living. This dichotomy underscores the challenges posed by economic development in the region.

Azmin, a recruiter in Kulim’s semiconductor hub, offers a sobering perspective. Reflecting on the tech promises, he states, “We haven’t had much demand lately,” with recent recruitment efforts yielding only small returns. The last recruitment cycle resulted in hiring just 20 individuals months ago for a smaller factory, far fewer than the industry might predict.

While policymakers highlight booming industries and economic transformation, Azmin notices a significant disconnect. As the semiconductor industry expands, rents and property prices have soared. He recalls, “A decade ago, I bought a modest home for 95,000 ringgit (about US$22,100). Today, similar properties go for at least 300,000 ringgit.”

Kulim Hi-Tech Park serves as a prime example of this rapid development, initially established on cleared farmland 30 years ago to support Penang’s semiconductor industry. Azmin, whose family recognized the park’s growth potential early on, notes the influx of major corporates like Austria’s AT&S and Germany’s Infineon.

In a display of confidence, Infineon committed €5 billion (approximately US$5.6 billion) for facility expansion last year. AT&S, not to be outdone, has invested in a 5 billion ringgit (around US$1.2 billion) manufacturing plant that underscores the growing interest in Kulim’s semiconductor landscape. However, this substantial investment raises concerns about the benefits trickling down to workers who remain squeezed by rising costs.

The complex interplay between industrial growth and surging living costs continues to challenge workers in Kulim, even as major investments pour into the semiconductor sector. Recruiters like Azmin reveal how the promises of a booming economy have not yet translated into widespread job opportunities. Meanwhile, property values soar, leaving many locals struggling to afford basic living expenses. The future of ‘Silicon Malaysia’ seems increasingly uncertain for its workforce.

Original Source: www.scmp.com