Malaysia Tightens Foreign Worker Regulations to Boost Local Employment
The Malaysian government has announced the implementation of new stringent regulations aimed at reducing reliance on foreign workers and strengthening the hiring of local labor. According to an Al Jazeera report, these changes will take effect from June and include a substantial increase in the minimum salary required to obtain a work visa as well as limiting the duration of stay for foreign workers to between five and ten years.
Under this plan, the minimum monthly salary for certain work visas will rise from 10,000 ringgit to 20,000 ringgit, equivalent to approximately 2,500 to 5,000 US dollars. Similar increases are planned for other visa categories.
The policy’s objective is to increase the income of Malaysian citizens and reduce the proportion of foreign workers in the labor market. Published information indicates that the share of foreign labor is targeted to decrease from 14.1 percent in 2024 to 5 percent by 2035.
However, reports show that this decision has sparked concerns among foreign workers and companies. Several foreign workers have stated that these changes have cast uncertainty on their long-term plans to live and work in Malaysia.
Economic experts have also warned that the increase in minimum salaries and new restrictions could raise company costs and potentially lead to the departure of skilled professionals from Malaysia—especially in sectors such as technology, finance, and energy, which rely more heavily on international labor.
