KUALA LUMPUR (Jan 14): From June 1, Malaysia will extend expatriates’ work permits by up to 10 years and let all categories bring dependants, with higher minimum salaries.
The move is part of the government’s aims to prioritise local talent while keeping Malaysia attractive for business, the Home Ministry said in a statement on Wednesday.
Employment passes will have higher minimum salaries and longer durations, with three categories offering different benefits.
The ministry said under the new changes, the maximum employment duration has been extended to 10 years for the highest tier of expat work permit.
The minimum salary requirements for most categories have doubled. In essence, the threshold for the lowest-tier permit will be upgraded to the current middle-tier’s thresholds, while the floors for the higher tiers have been raised.
This is the first major update to the expatriates’ employment passes since 2016. The ministry said the changes follow engagement sessions held with industry players and stakeholders since 2022.
The move is anchored on the government’s intent to prioritise local talents while also balancing the need to maintain Malaysia’s competitiveness as a viable business-friendly investment destination, the Home Ministry noted.
“The formulation of this new policy is aligned with the targets of the 13th Malaysia Plan to reduce dependence on foreign labour and to prioritise qualified local talent to fill job vacancies before considering the hiring of expatriates,” the ministry said.
“In addition to salary adjustments, this policy also introduces employment duration for expatriates, which previously had no specific limit. The setting of this duration is not only intended to recognise expatriates with high-level expertise to continue contributing to the country, but also serves as guidance for employers in planning a more structured succession plan with the involvement of the local workforce,” it added.
The Home Ministry said engagement and consultation sessions will be organised with stakeholders to ensure the transition to the revised policy is orderly and transparent.
“In line with the principles of Malaysia Madani, the government will continue to ensure that every policy reform is implemented progressively, in a balanced manner and anchored on national interest, in order to guarantee sustainable economic growth and the long-term development of local human capital."