{"id":5661,"date":"2026-03-26T03:36:04","date_gmt":"2026-03-26T03:36:04","guid":{"rendered":"https:\/\/pronews.in\/index.php\/2026\/03\/26\/malaysia-moves-to-tighten-rules-for-expats-raising-fears-of-talent-flight\/"},"modified":"2026-03-26T03:36:04","modified_gmt":"2026-03-26T03:36:04","slug":"malaysia-moves-to-tighten-rules-for-expats-raising-fears-of-talent-flight","status":"publish","type":"post","link":"https:\/\/pronews.in\/index.php\/2026\/03\/26\/malaysia-moves-to-tighten-rules-for-expats-raising-fears-of-talent-flight\/","title":{"rendered":"Malaysia moves to tighten rules for expats, raising fears of talent flight"},"content":{"rendered":"<div aria-live=\"polite\" aria-atomic=\"true\">\n<p><strong>Kuala Lumpur, Malaysia \u2013<\/strong> Until recently, Sanjeet, a business consultant from India, thought of Malaysia as home.<\/p>\n<p>After living and working in the Southeast Asian nation for more than a decade, he had gotten comfortable with the climate, people and way of life.<\/p>\n<section>\n<h2>Recommended Stories <\/h2>\n<p><span>list of 4 items<\/span><\/p>\n<ul>\n<li><span>list 1 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/video\/newsfeed\/2026\/3\/25\/us-to-send-thousands-of-soldiers-from-82nd-airborne-division-to-middle-east\">US to send thousands of soldiers from 82nd Airborne Division to Middle East<\/a><\/li>\n<li><span>list 2 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/economy\/2026\/3\/25\/us-jury-orders-meta-to-pay-375m-for-endangering-children\">US jury orders Meta to pay $375m for endangering children<\/a><\/li>\n<li><span>list 3 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/video\/newsfeed\/2026\/3\/25\/what-we-know-about-the-uss-15-point-plan-iran-proposal\">What we know about the US\u2019s 15-point plan Iran proposal<\/a><\/li>\n<li><span>list 4 of 4<\/span><a href=\"http:\/\/www.aljazeera.com\/news\/2026\/3\/25\/canada-tells-israel-that-lebanons-sovereignty-must-not-be-violated\">Canada tells Israel that Lebanon\u2019s sovereignty \u2018must not be violated\u2019<\/a><\/li>\n<\/ul>\n<p><span>end of list<\/span><\/section>\n<p>\u201cOnce I had crossed the five-year mark, Malaysia seemed like an ideal long-term choice,\u201d Sanjeet, who is in his 40s and asked to use a pseudonym, told Al Jazeera.<\/p>\n<p>\u201cOne gets used to what Malaysia has to offer.\u201d<\/p>\n<p>But after a recent move by the Malaysian government to reduce the country\u2019s reliance on foreign workers, Sanjeet\u2019s plans \u2013 and those of thousands like him \u2013 have been plunged into doubt.<\/p>\n<p>From June onwards, the minimum salary threshold for foreign workers to obtain a visa will be raised as much as two-fold, and workers\u2019 length of stay will be capped at five or 10 years.<\/p>\n<p>\u201cWhat was surprising was that this came out of the blue,\u201d Sanjeet said.<\/p>\n<p>\u201cIt does leave room for doubt in terms of long-term plans, which include things like buying a house or car here.\u201d<\/p>\n<p>Malaysia, which transformed into one of Southeast Asia\u2019s most developed economies after gaining independence from Britain in the 1960s, has been an attractive destination for foreign labour for decades.<\/p>\n<p>Many of the 2.1 million documented foreign workers in the country take on manual labour for salaries of around the monthly minimum wage of 1,700 ringgit ($430).<\/p>\n<p>A much smaller pool of foreign workers is employed in highly-paid specialised sectors such as finance, semiconductors, and oil and gas.<\/p>\n<p>In 2024, Home Affairs Minister Saifuddin Nasution said the country\u2019s highly-salaried expatriate population \u2013 estimated at about 140,000 people \u2013 pumped about 75 billion ringgit ($19bn) into the domestic economy and contributed about 100 million ringgit ($25m) in taxes each year.<\/p>\n<figure id=\"attachment_4432393\" aria-describedby=\"caption-attachment-4432393\"><img decoding=\"async\" data-recalc-dims=\"1\" loading=\"lazy\" src=\"http:\/\/www.aljazeera.com\/wp-content\/uploads\/2026\/03\/AP24262496573167-1-1774413699.jpg?w=770&#038;resize=770%2C514&#038;quality=80\" alt=\"KL\" fetchpriority=\"low\"><figcaption id=\"caption-attachment-4432393\">A couple enjoy the view of the skyline in Kuala Lumpur, Malaysia, on September 18, 2024 [Vincent Thian\/AP]<\/figcaption><\/figure>\n<p>Malaysia\u2019s pool of foreign labour has been a focus of growing debate in the nation of 34 million people in recent years.<\/p>\n<p>In the latest five-year national policy strategy released in 2025, the government warned that a \u201ccontinuous reliance\u201d on low-skilled foreign workers had hampered the adoption of critical technology in the economy.<\/p>\n<p>\u201cThis issue induced a ripple effect in the labour market, including the dominance of low-skilled and (low)-wage jobs, wage distortions as well as slow productivity growth,\u201d the authors of the 13th Malaysia Plan said.<\/p>\n<p>As part of efforts to encourage the hiring of locals and boost incomes in a country where the average monthly wage is about $700, the government plans to slash the proportion of foreigners in the workforce from 14.1 percent in 2024 to 5 percent by 2035.<\/p>\n<p>In January, the Ministry of Home Affairs said tighter requirements for foreign workers would be extended to higher-paid expatriates to \u201csupport sustainable economic growth while strengthening the development of local talents\u201d.<\/p>\n<p>Under the new rules, the minimum starting monthly salaries for three categories of work permit will be raised from 10,000 to 20,000 ringgit ($2,500 to $5,000), 5,000 to 10,000 ringgit ($1,260 to $2,520), and 3,000 to 5,000 ringgit ($760 to $1,260), respectively.<\/p>\n<p>On top of the higher salary floors, expatriates\u2019 duration of stay will be limited, and employers will need to put in place plans for recruiting local talent after their sojourn ends.<\/p>\n<p>UK native Thomas Mead, who has been working in Malaysia since late 2022, said the government\u2019s plans had left some expats feeling uncertain about their future.<\/p>\n<p>\u201cThere have always been rules in place, including minimum salary requirements,\u201d Mead, a 28-year-old wealth manager, told Al Jazeera.<\/p>\n<p>\u201cHowever, the jump from RM10,000 to RM20,000 was quite a shock.\u201d<\/p>\n<p>After falling in love with Malaysia\u2019s culture and food as a student, Mead returned to the country to work, and recently bought a property in Kuala Lumpur with a view to putting down roots.<\/p>\n<p>\u201cI\u2019ve heard some expatriates starting to talk about relocation options if they\u2019re forced to,\u201d he said, saying many would be \u201creluctant\u201d to leave.<\/p>\n<figure id=\"attachment_4432642\" aria-describedby=\"caption-attachment-4432642\"><img decoding=\"async\" data-recalc-dims=\"1\" loading=\"lazy\" src=\"http:\/\/www.aljazeera.com\/wp-content\/uploads\/2026\/03\/2026-01-21T062403Z_1980190460_RC2D5JAW3CU1_RTRMADP_3_AIRASIA-AVIATION-1774422589.jpg?w=770&#038;resize=770%2C525&#038;quality=80\" alt=\"Air Asia\" fetchpriority=\"low\"><figcaption id=\"caption-attachment-4432642\">AirAsia planes on the tarmac at Kuala Lumpur International Airport Terminal 2 in Sepang, Malaysia, on January 21, 2026 [Hasnoor Hussain\/Reuters]<\/figcaption><\/figure>\n<p>Douglas Gan, the Singaporean founder of a venture capital fund with portfolio companies in Malaysia, said the changes would drive up expenses for companies previously drawn by the country\u2019s affordable costs.<\/p>\n<p>Gan said the new rules would be \u201cchallenging\u201d for those recruiting overseas talent who currently qualify for visas under lower salary thresholds, giving the example of engineers from second-tier cities in China.<\/p>\n<p>\u201cIf salaries increase to 10,000 ringgit, companies definitely won\u2019t bring them here,\u201d he told Al Jazeera.<\/p>\n<p>Gan said he was not against moves to tighten the requirements for foreign labour, but expressed hope that the government would consider the impact on different industries instead of taking a \u201cblanket approach\u201d.<\/p>\n<p>\u201cFor businesses already in Malaysia, we\u2019re taking a wait-and-see approach,\u201d he said.<\/p>\n<p>Leonardo, an Indonesian who works in Malaysia in the computer games sector, said the changes would see him downgraded from the second to the third employment pass category.<\/p>\n<p>He had hoped to settle down in Malaysia and eventually bring his mother to live in the country, but now wonders if that will be possible.<\/p>\n<p>\u201cMy mum is alone and living in Indonesia. There was a thought that if I could settle here, I could bring her over,\u201d he said.<\/p>\n<p>Wan Suhaimie, head of economic research at Kenanga Investment Bank in Kuala Lumpur, said firms could only hire locals when workers with the necessary skills were available.<\/p>\n<p>\u201cThe long-run gain depends less on blocking expats and more on whether Malaysia can actually supply the skills,\u201d he told Al Jazeera.<\/p>\n<p>He said the doubling of salary thresholds had come as a shock, and foreign workers on the second-tier employment pass were not extravagant hires but core managers, engineers and specialists.<\/p>\n<p>\u201cTenure limits can work for skills transfer, but only if succession plans are real and not just paperwork,\u201d he said.<\/p>\n<figure id=\"attachment_4432395\" aria-describedby=\"caption-attachment-4432395\"><img decoding=\"async\" data-recalc-dims=\"1\" loading=\"lazy\" src=\"http:\/\/www.aljazeera.com\/wp-content\/uploads\/2026\/03\/AFP__20220208__9YR4DR__v1__MidRes__MalaysiaEconomy-1774413728.jpg?w=770&#038;resize=770%2C512&#038;quality=80\" alt=\"KL\" fetchpriority=\"low\"><figcaption id=\"caption-attachment-4432395\">A KL Monorail train approaches its station in downtown Kuala Lumpur, Malaysia, on February 8, 2022 [Mohd Rasfan\/AFP]<\/figcaption><\/figure>\n<p>Anthony Dass, the chief executive of FSG Advisory, a strategic advisory firm, said the new policy could increase costs for firms relying on mid-tier expat labour.<\/p>\n<p>How Malaysians benefit will depend on the implementation of policies to develop the local workforce, Dass said.<\/p>\n<p>\u201cThe measures are directionally consistent with strengthening the local talent pipeline, but complementary reforms in capability building and industry upgrading will determine the outcome,\u201d he said.<\/p>\n<p>Joshua Webley, a 33-year-old business manager from the UK who is married to a Malaysian citizen, said that while the higher bar would make it harder for some foreigners to relocate to the country, it would not stop those with the right skills.<\/p>\n<p>\u201cIf you come here to Malaysia, you have to be skilled enough,\u201d Webley told Al Jazeera.<\/p>\n<p>\u201cFor those high-skilled workers, Malaysia will still be a shining light for relocation.<\/p>\n<p>\u201cFor a few people, it might be a bad situation, but I think a year from now it will be perceived as normal,\u201d he added.<\/p>\n<p>Others, such as Sanjeet, are less sanguine.<\/p>\n<p>\u201cIf Malaysia pursues these policies without a comprehensive rationale, then\u2026 people like me will look for alternatives such as Vietnam, Thailand and elsewhere, which have favourable policies for expats,\u201d he said.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Kuala Lumpur, Malaysia \u2013 Until recently, Sanjeet, a business consultant from India, thought of Malaysia as home. After living and working in the Southeast Asian nation for more than a decade, he had gotten comfortable with the climate, people and way of life. Recommended Stories list of 4 items list 1 of 4US to send &#8230; <a title=\"Malaysia moves to tighten rules for expats, raising fears of talent flight\" class=\"read-more\" href=\"https:\/\/pronews.in\/index.php\/2026\/03\/26\/malaysia-moves-to-tighten-rules-for-expats-raising-fears-of-talent-flight\/\" aria-label=\"Read more about Malaysia moves to tighten rules for expats, raising fears of talent flight\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":5662,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[],"class_list":["post-5661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-travel"],"_links":{"self":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts\/5661","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/comments?post=5661"}],"version-history":[{"count":0,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/posts\/5661\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/media\/5662"}],"wp:attachment":[{"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/media?parent=5661"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/categories?post=5661"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pronews.in\/index.php\/wp-json\/wp\/v2\/tags?post=5661"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}