Summary
Malaysia is changing its rules for foreign workers, including raising the salary requirements for work permits and limiting the length of time they can stay. These changes aim to reduce the country's reliance on foreign workers and encourage the hiring of local talent. This has led to concerns among expatriates about their future in Malaysia.
Key Facts
- Malaysia plans to increase the minimum salary requirements for foreign workers starting in June.
- The new salary thresholds will be as follows: from 10,000 to 20,000 ringgit for some positions, 5,000 to 10,000 ringgit, and 3,000 to 5,000 ringgit for others.
- The government will cap foreign workers' stay to either five or ten years.
- There are approximately 2.1 million documented foreign workers in Malaysia, many in low-wage jobs.
- The highly-paid expatriate group contributes significantly to Malaysia's economy, generating about $19 billion annually.
- The plan aims to reduce the foreign workforce from 14.1% in 2024 to 5% by 2035.
- Malaysia's new policy seeks to promote local employment and improve income levels.
- Concerns have arisen among current expatriates about their long-term prospects in Malaysia.
