Malaysia considers stricter regulations on foreign workers and expats

Malaysia to Implement New Rules for Foreign Workers

The Malaysian government has announced plans to increase the minimum salary threshold for foreign workers and limit their length of stay, effective from June onwards. The new rules aim to encourage local hiring and boost incomes in the country.

As part of these changes, the minimum monthly salaries for three categories of work permit will be raised: 20,000 ringgit ($5,000), 10,000 ringgit ($2,520), and 5,000 ringgit ($1,260). Additionally, foreign workers’ duration of stay will be capped at five or 10 years.

The government’s goal is to reduce the proportion of foreigners in the workforce from 14.1 percent in 2024 to 5 percent by 2035. The new rules are part of efforts to encourage local hiring and support sustainable economic growth.

Foreign workers currently take on manual labor for salaries around the monthly minimum wage of 1,700 ringgit ($430). A smaller pool of foreign workers is employed in highly-paid specialized sectors such as finance, semiconductors, and oil and gas.

The government has also stated that a “continuous reliance” on low-skilled foreign workers had hampered the adoption of critical technology in the economy. The new rules are intended to address this issue and promote local talent development.

Employers will be required to put in place plans for recruiting local talent after their sojourn ends, and expatriates’ duration of stay will be limited. The government aims to achieve a more balanced workforce with a greater proportion of locals.

The changes have left some foreign workers feeling uncertain about their future, as they had previously planned to live and work in Malaysia for extended periods.

Source: Al Jazeera