Malaysia announces new policies for foreign workers, effective from June 1

into effect from June 1 this year. The new rules have set the validity of passes for categories from 5 to 10 years.

According to the ministry, there was previously no specific time limit for this pass. The new reforms will allow highly skilled foreigners to contribute more consistently to the country's development and will give employers the opportunity to plan for the long term.

One of the main goals of the new policy is to ensure employment for local Malaysians. The government said the specific timeframe will serve as a guide for employers to adopt 'succession plans' to gradually replace expatriates with local skilled workers. 

Especially for professional second and third category passes, it has been made mandatory to train locals.

The minimum salary limit for expatriate workers has also been significantly increased under this change. For Category-1, the minimum salary has been increased from RM10,000 to RM20,000 and its tenure will be 10 years. For Category-2, the salary has been set at RM10,000 to RM19,999, and for Category-3, it has been set at RM5,000 to RM9,999.

The government hopes that this increased salary structure and tenure will help maintain business stability and accelerate local human resource development.

All expatriates holding the pass will be allowed to bring their families or dependents with them. Before full implementation from June 1, the government will hold discussions with industry owners and various stakeholders to ensure that this transition process is completed in a transparent and orderly manner.

The government's goal is to ensure the country's economic growth and the long-term development of a skilled local workforce while protecting national interests.