ECONOMY — March 26, 2026

Malaysia Announces Stricter Regulations for Foreign Workers

The Malaysian government has introduced stricter regulations for foreign workers effective June, raising minimum salary thresholds for visas and limiting stays to 5-10 years to cut foreign labor share to 5% by 2035. The policy has raised concerns among workers and businesses over costs and skilled labor shortages.

The Ehtebar Desk — originates with Pajhwok2 min read

Malaysia Announces Stricter Regulations for Foreign Workers
Image courtesy Pajhwok

KUALA LUMPUR — The Malaysian government has announced stricter regulations for foreign workers, effective from June, to reduce reliance on overseas labor and boost domestic employment.

According to Al Jazeera, the new policy raises the minimum salary required for certain work visa categories from 10,000 ringgit (approximately $2,500) to 20,000 ringgit (about $5,000), with similar adjustments planned for other categories. It also limits the duration of stay for foreign workers to between five and 10 years.

The measures aim to increase citizens' incomes and lower the share of foreign labor in the workforce, from 14.1 percent in 2024 to 5 percent by 2035.

The decision has sparked concerns among foreign workers, many of whom expressed uncertainty about their long-term plans in Malaysia. Businesses and economic experts have warned that the policy could drive up operational costs and lead to an outflow of skilled labor, particularly in the technology, finance and energy sectors.

Read the original reporting at Pajhwok

Reliability assessment

Single source (Pajhwok citing Al Jazeera) provides direct, concrete, checkable details on government policy announcement including effective date, salary thresholds, stay limits, and labor targets.

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EconomyMalaysia, foreign workers, work visa, labor policy, Al Jazeera

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