Big Changes in Malaysia’s Work & Visa Policies – Check Before You Apply!

Big Changes in Malaysia’s Work & Visa Policies: In recent months, Malaysia has rolled out significant changes to its work and visa policies. Whether you’re an expatriate looking to work in the country or a business interested in hiring foreign talent, it’s essential to stay updated on these new regulations. These changes impact employment passes, the hiring of foreign workers, and even the newly introduced Digital Nomad Visa. Let’s dive into these changes and explore how they affect you.

Big Changes in Malaysia’s Work & Visa Policies

These changes come as part of Malaysia’s efforts to modernize its immigration policies, attract skilled foreign workers, and streamline the process for expats. Let’s break these updates down for you, one by one, so you can understand the key points and how they apply to you.

Malaysia’s work and visa policy changes are designed to streamline immigration processes, protect foreign workers, and attract skilled professionals. Whether you’re an employer planning to hire foreign workers or a digital professional looking to live and work in Malaysia, understanding these changes is crucial.

These changes aim to make Malaysia a more attractive destination for global talent, while ensuring that the foreign workforce is managed efficiently and sustainably

1. Employment Pass (EP) Category Changes: What You Need to Know

The Malaysian Employment Pass (EP) allows foreign nationals to work in Malaysia. There have been recent adjustments in how Employment Pass applications and renewals are processed. One of the biggest changes is the requirement for a “Change of Category” letter when altering the employment pass category.

For example, if you’re upgrading from a Category 3 to Category 2 Employment Pass, you will now need to cancel the old pass and submit an application under the new category. This policy is designed to streamline the system, but it’s essential to follow these steps carefully to avoid delays or issues.

Practical Tip: If you’re in a position where you need to upgrade your Employment Pass, make sure to coordinate with your employer and follow the new process to avoid unnecessary delays.

2. Stricter Regulations for Hiring Foreign Workers

One of the most noticeable changes to Malaysia’s work policies is how foreign workers are hired. The ePPAx system, an online platform for submitting foreign worker recruitment applications, is now mandatory. All employers must apply for a 12-month approval certificate before bringing foreign workers to Malaysia.

Additionally, certain sectors, especially construction, face stricter guidelines. Approval certificates for this sector will no longer be issued via email but must now be submitted through the ePPAx system.

Example: Imagine you’re running a construction business in Malaysia and need to hire a foreign worker. You will now need to submit your application through ePPAx. Make sure you’re prepared with the required documentation and information.

Why It Matters: This move aims to reduce the number of unapproved foreign workers, offering a more transparent system.

3. Introduction of the Digital Nomad Visa

In an increasingly globalized world, remote work is more common than ever. Malaysia has embraced this shift by introducing the DE Rantau Nomad Pass, which allows qualified foreign digital professionals to work remotely from Malaysia.

This pass is available to people working in IT and digital fields like software engineering, digital marketing, and data analytics. The idea is to attract digital nomads, freelancers, and remote workers, making Malaysia a hub for the global workforce.

Practical Advice: If you’re a digital professional looking to work remotely from Malaysia, you’ll want to check the eligibility criteria for the DE Rantau Nomad Pass. This visa streamlines the process for digital professionals to work in the country.

Official Details: To learn more about this visa, check out the Malaysia Digital Economy Corporation.

4. Changes to Malaysia My Second Home (MM2H) Program

The Malaysia My Second Home (MM2H) program allows foreign nationals to retire or live long-term in Malaysia. There have been updates to the financial requirements for participants in this program.

For example, the Silver tier now requires a fixed deposit of US$150,000 and the purchase of a property worth over RM600,000. This tier provides benefits such as long-term residency, and the program is divided into different levels with varying criteria depending on the applicant’s financial status.

Example: If you are looking to retire or invest in Malaysia, you may need to meet higher financial standards compared to previous years.

This revamped program makes it clearer who qualifies for long-term residency, ensuring that only individuals who meet the financial and property criteria are eligible.

5. Repatriation of Foreign Workers: New Rules for Those Who Overstay

The Malaysian government has introduced a Migrant Repatriation Program aimed at repatriating foreign workers who have overstayed or violated their permits. Under this program, workers who don’t have valid travel documents can return home by paying a fine between MYR 300 and MYR 500.

This initiative is part of Malaysia’s effort to manage its foreign workforce effectively and ensure that migrants are not left stranded in the country without proper documentation.

6. Outsourcing of Foreign Workers Banned

Employers are no longer allowed to outsource the hiring of foreign workers to third-party agencies. This move ensures that businesses take full responsibility for the hiring process, including compliance with Malaysian labor laws.

By eliminating outsourcing, the government is aiming to protect both foreign workers and businesses from exploitation and legal issues.

7. Hiring Freeze on Foreign Workers

In a bid to balance the ratio of foreign workers within the local workforce, Malaysia has implemented a hiring freeze for foreign workers in certain industries. The goal is to ensure that no more than 15% of Malaysia’s total workforce is made up of foreign nationals by 2025.

This freeze will be particularly impactful in sectors that heavily rely on foreign labor, such as manufacturing and agriculture.

8. Relaxed Re-entry for Certain Expats

For certain long-term expatriates, there are relaxed re-entry rules. Expats holding a Resident Pass-Talent or Category 1 Employment Pass (E1) can now return to Malaysia without needing extensive documentation or immigration approvals, as long as they meet health and safety requirements.

This change makes it easier for expatriates to travel in and out of Malaysia, supporting the long-term talent that the country is trying to retain.

9. Practical Tips for Employers and Workers

For Employers:

• Stay Compliant: Ensure that all foreign worker applications are submitted through the ePPAx system to avoid delays.
• Review Pass Categories: If you need to change an Employment Pass category, do so before hiring new workers or renewing passes.
• Plan Ahead: The hiring freeze may limit your ability to bring in foreign workers, so plan accordingly and ensure your business meets local labor force requirements.

For Foreign Workers and Expats:

• Check Visa Eligibility: If you are a digital nomad, make sure you meet the requirements for the DE Rantau Nomad Pass. If you’re considering long-term residency, review the financial thresholds for the MM2H program.
• Stay Informed: Keep an eye on any updates or changes to the immigration process, as Malaysia continues to adapt its policies to global needs.

Latvian State Scholarships for International Students – Fully Funded 2025 Program, Apply Now!

H-1B Yearly Lottery Announced – What Does It Mean Amid Concerns Over Visa Program Cuts?

Poland Opens Job Market for C-Type (90-Day) Visa Holders – Check New Rules!

FAQs About Big Changes in Malaysia’s Work & Visa Policies

What are the new requirements for hiring foreign workers in Malaysia?

Employers must submit recruitment applications through the ePPAx system, which is a mandatory platform for foreign worker applications.

Can digital nomads work in Malaysia under the new policies?

Yes! Malaysia has introduced the DE Rantau Nomad Pass, which allows remote workers in fields like software engineering and digital marketing to live and work in Malaysia.

What are the financial requirements for the MM2H program?

The Silver tier of the MM2H program requires a fixed deposit of US$150,000 and the purchase of a property worth over RM600,000.

Are there any changes to the Employment Pass process?

Yes. Applicants for the Employment Pass now need a Change of Category letter if they are altering their pass type. This change requires the cancellation of the old pass and submission of a new application.