In Kulim, “Silicon Malaysia,” rising living costs challenge semiconductor sector growth. Local recruiter Azmin highlights a recruitment slump and the impact of soaring housing prices, with properties skyrocketing from 95,000 to 300,000 ringgit. Despite major investments from companies like Infineon and AT&S, the realities for workers seem grim as they struggle to cope with basic expenses.
In the heart of what’s dubbed “Silicon Malaysia,” rising living costs are casting shadows over its ambitious semiconductor ambitions. The stark contrast is evident in places like a coffee shop on the outskirts of Kulim’s industrial zone, where local recruiter Azmin reflects on the reality of the region’s economy. Despite the tech sector’s sparkling allure, many factory workers here are grappling with soaring costs for housing and necessities, making day-to-day life increasingly difficult.
Azmin, who prefers to go by his first name due to concerns about his business reputation, described the current job market as disappointing. “We haven’t had much demand lately. The last round of recruitment we handled was a few months ago for 20 people at a smaller factory,” he stated. This reveals a much bleaker picture than the one often presented by government officials, who highlight supposed economic growth and abundant job opportunities.
As property prices surge in this area, once known for its oil palm plantations and farmland, the reality is bitter for many locals. Azmin noted that a decade ago, he purchased a modest home for 95,000 ringgit (approximately US$22,100). Fast forward to today, and similar properties now command no less than 300,000 ringgit, a significant hike that leaves many feeling the pinch.
Kulim Hi-Tech Park, an industrial haven established three decades ago, sits on 5,600 acres of what was once fertile land. The park has been a crucial element in supporting the semiconductor growth in Penang, which lies nearby. Azmin and his family, originally from Penang, recognized the park’s potential early on and have watched as international giants like Austria’s AT&S and Germany’s Infineon set up operations in the area.
Last year marked a significant investment from Infineon, which announced a €5 billion (about US$5.6 billion) expansion plan for its facility. Meanwhile, AT&S recently broke ground on a new plant in the park with a hefty tag of 5 billion ringgit (circa US$1.2 billion). Nonetheless, despite these enormous investments, the effects on local labor markets and affordability remain a pressing concern.
Overall, Kulim’s hopeful narrative as “Silicon Malaysia” is increasingly marred by the stark contrast of financial realities faced by workers. While substantial foreign investments appear promising, they do not alleviate the immediate struggles of the local population with rising costs. There is a pressing need to reassess how these developments impact everyday life for residents in the area.
Original Source: www.scmp.com
