Malaysia Announces Stricter Regulations for Foreign Workers

Malaysia Announces Stricter Regulations for Foreign Workers

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.

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