Brain Drain and Future Prospects in Malaysia

Chapter 1

1.0Introduction

This study aimed to investigate “brain drains and future prospects in Malaysia”. In the economic concept brain drain can defined as human capital outflow or international conversion of human resource which means that there are a mass of individuals with talented, high education or high skills migrating from their home country to host country (Todaro, 1985). In this research the factor of brain drain will analyzing through political and social effects economic growth in Malaysia. However, scholars have been long differing in the views towards the effect of brain drain on sending countries. During 1960s, Grubel & Scott, Berry & Soligo and Harry Johnson had defined that brain drain is cause by “benefit deteriorating” to those non-migrants. This study sheds light on the important factors of brain drain, which had given to describe the emigration of all those individuals in Malaysia.

Thus, this research indicates two main factors which cause of most these talent and skilled individuals migrate because of the country and individual factor. Country factor includes the fact that they do not have enough opportunities, health issues, technological and also some political issues. Individual factor includes things like better opportunities in other countries, the fact that there are many family members in that particular country, and also the urge to explore other countries. However, besides all these reasons there is one particular reason why many migrate from their native country which because of the economic instability, income gaps, and ethnic problem. Migrants might get offered a better persistence a big income differences by moving to another country. That basically defines the causes of “brain drain”. World Bank (2011)

A number of interesting findings emerged and it is hoped that the findings shed lights on what are the factor of brain drain must do in order to improve development in Malaysia. When emigration happens, the amount of skilled and knowledgeable individuals in that particular country will be decreased. This causes the country to have slow growth or no growth at all politically, economically and socially. When there are less knowledgeable people ruling the country, proper decisions cannot be made as they have less effective ideas and ways of running the country to be a developed one. It directly affects the economy and social level of the country as other developed countries in the world would not want to work together or business deals with those developing country. The currency value will drop and the country suffers from this and might not have a chance of becoming developed and successful.Mountford (1997) and Beine, Docquier and Rapaport (2001) found out the cause of brain drain mostly cause by higher education in potential beneficial migration in encouraging high skill human capital. Religious fractionalizations in Malaysia have a strongly influence talent to go aboard.  

Hence, Malaysia National economic Polisy (NEP) have come out with the unpredicted outcome, it sense of lack discrimination and even anger felt by other non- bumi races in Malaysia,  which due to some officer in the realization of some overzealous attitude and approach of agencies. These also widening the income gap within the Bumiputera  community, leading to rising dissatisfaction among certain sectors of society. These factors have pushed many Malaysians, especially professionals which working and living abroad are attractive with pull factors, such as higher income, more extensive contracts and opportunities, better quality of life and economy of children’s  education form the developed countries. This possibly will have chosen to settle permanently and there are signs that this brain drain has become increasingly serious. (Pemandu, 2010; p. 76).

1. Background of the research and research question

Currently, in the era of globalization, many open door trade policies have been introduced and this adds to the competition in the business world. This is mainly due to the changing economic, social, political and technological environment. Malaysia has also encountered this issue and this affects Malaysia’s economy. This research is vital because it will provide the clues for the policy makers to tackle the problem more effectively. The factor of brain drain are cause by the difference in earnings potential, quality of education, quality of life and career prospects (Battacharjee 2011) This research will provide a working plan and describe the activities necessary for the completion of this project, how to proceed, how to measure progress, and what constitutes information.