Malaysia is set to implement a major overhaul of its expatriate visa scheme starting this June, with minimum salary requirements for skilled foreign workers set to double. The move marks the first significant update to the scheme in nearly a decade, following the last major revision in September 2017.
The changes, applicable across all economic sectors, are part of the government’s strategy to create more high-quality job opportunities for Malaysians amid growing foreign investment.
Under the new rules:
- Employment Pass Category I (top management) minimum salary rises from RM10,000 to RM20,000 per month.
- Category II (mid-level positions) increases from RM5,000 to RM10,000 per month.
- Category III (lower-level positions) goes from RM3,000 to RM5,000 per month.
Malaysia Investment Development Authority (MIDA) CEO Sikh Shamsul Ibrahim said the policy aims to prevent downward pressure on local wages caused by hiring lower-cost foreign labour, particularly in high-growth sectors. Companies seeking expatriate workers will now need stricter justification to ensure localisation plans are followed, prioritising Malaysian talent wherever possible.
Economists have described the move as a double-edged sword. On one hand, it aligns Malaysia’s salary thresholds with benchmarks in Singapore and Hong Kong, potentially encouraging skill transfer and accelerating localisation of senior-level roles. On the other, questions remain about whether Malaysia’s current ecosystem can attract global talent at salaries above RM20,000. Without strong talent development pipelines or sector-specific exemptions, the policy could affect multinational investment decisions, particularly in areas like R&D and digital transformation.
The policy is also aimed at ensuring that the benefits of foreign investment are felt by local workers through higher wage benchmarks. As of November 2025, 166,980 new employment passes had been issued, highlighting the need for stricter controls to support Malaysia’s workforce.
