In Kulim, part of Silicon Malaysia, semiconductor industry growth is overshadowed by soaring living costs. Workers like Azmin, a local recruiter, highlight the disconnect between government-promised job opportunities and the reality of diminished hiring demand. Housing prices have surged dramatically, reflecting a troubling trend as industrial development rises. Major investments continue, but local affordability issues remain largely unaddressed, casting doubt on the benefits of this economic boom.
In the rapidly developing region dubbed “Silicon Malaysia,” steep increases in living costs are overshadowing the promised economic benefits of the semiconductor industry. Workers in Kulim, a key area for electronics manufacturing, are grappling with the challenge of affording basic necessities as rental prices soar amid ongoing industrial growth.
Azmin, a recruiter within one of the area’s burgeoning semiconductor factories, shared his thoughts while sipping water at a local cafe. He noted, “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.” His comment reflects the disconnect between the government’s optimistic economic forecasts and the actual employment landscape on the ground.
While the Malaysian government promotes a narrative of thriving industry and innovation, Azmin’s perspective reveals a different reality. The rise in industrial development has led to skyrocketing land prices, drastically affecting housing affordability. In a troubling trend, the cost of homes has surged beyond the reach of many. Azmin mentioned that ten years ago, he purchased a modest home for 95,000 ringgit (approximately $22,100), whereas similar houses are now being sold for no less than 300,000 ringgit.
The Kulim Hi-Tech Park was established 30 years ago, transforming cleared farmland into a significant player in the semiconductor sector. Originally intended to support Penang’s growing tech industry, the park has attracted major investors, including renowned companies like Austria’s AT&S and Germany’s Infineon. Infineon’s commitment to invest €5 billion (about $5.6 billion) to enhance its facility aligns with AT&S’s recent announcement to build a new plant in the park, costing 5 billion ringgit (approximately $1.2 billion).
Despite these significant investments, the overarching trend of rising living costs raises questions about who truly benefits from the so-called semiconductor boom. For many in the local community, the disparity between the rich industrial growth and the concomitant cost of living is becoming increasingly untenable, leading to widespread discontent.
The ongoing chasm between rising costs and local economic realities highlights the troubling aftermath of rapid industrialization in Kulim. As significant investments pour into the semiconductor sector, the day-to-day lives of workers and residents are becoming increasingly difficult to sustain. With housing prices skyrocketing, it remains to be seen how the government and industry leaders will address these emerging challenges to ensure that prosperity is not just a facade, but a reality that encompasses all members of the community.
Original Source: www.scmp.com
