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Beyond the Numbers: Exploring the Financial and Socio-Cultural Roots of Malaysia’s Brain Drain

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This study aims to investigate the underlying factors contributing to the brain drain phenomenon in Malaysia, with a specific focus on evaluating the relative influence of financial and socio-cultural drivers behind the migration decisions of skilled professionals. A quantitative research design was employed, utilizing survey data to examine the statistical relationship between selected financial variables (cost of living, unemployment rate, monetary and non-monetary incentives) and socio-cultural variables (politics and governance, education, family influence, and nepotism) with the intention to migrate. Hypothesis testing was conducted to determine the significance of each factor. The study reveals that financial factors, particularly the domestic cost of living and unemployment rate, are the most influential in shaping emigration decisions among skilled Malaysians. In contrast, socio-cultural factors demonstrated no statistically significant impact in the Malaysian context. The results suggest that professionals are primarily driven by economic pressures rather than dissatisfaction with socio-cultural conditions. The findings call for a holistic and context-sensitive policy response. Policymakers should prioritize economic reforms focused on reducing the cost of living, increasing job opportunities, and improving wage competitiveness. Simultaneously, long-term strategies must cultivate professional environments that support career growth and retain domestic talent. This study contributes to the limited empirical literature on brain drain in Malaysia by integrating both financial and socio-cultural perspectives within a unified framework. It offers practical insights for the formulation of targeted talent retention strategies that align with Malaysia’s sustainable development goals.
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