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Malaysia’s brain drain deepens as 1 in 6 state-funded scholars opts to work abroad

Government data shows over 2,800 scholarship recipients have chosen not to return and fulfil their public service commitments since 2010

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Students prepare for an exam in front of their computers at Kuala Lumpur-based Asia e University (AeU). Photo: AFP
Malaysia spends large sums of money to send its brightest students to study abroad, but a significant percentage of them are choosing not to return, with over 2,800 state-sponsored scholars opting instead to repay their scholarships and abandon commitments to serve in the public sector, according to a report released on Wednesday.

Experts say this reflects a broader talent exodus that threatens to undermine Malaysia’s development goals. The Human Resources Ministry reported that in 2023, 5.5 per cent of Malaysia’s working-age population was living and working abroad – a brain drain rate nearly double the global average of 3.3 per cent.

This figure represents around 1.8 million Malaysians who have moved abroad seeking better opportunities, with most choosing neighbouring Singapore.

On Wednesday, the Public Service Department (JPA) said that more than 16 per cent of nearly 17,000 students it has sponsored for overseas tertiary education since 2010 have chosen to repay their scholarships instead of returning to serve in the public sector as initially agreed.

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The department allocates about 500 million ringgit (US$111 million) annually for these scholarships, which mostly fund undergraduate studies in medicine and engineering in the UK and Europe.

Employment data from the Department of Statistics Malaysia shows that Singapore remains the most popular destination for Malaysian workers, followed by Australia, the UK and the US.

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