Malaysia Revised Immigration Policy to Find Work, Visa Renewals, and Internships – YOA

Malaysia has launched a significant overhaul to its immigration insurance policies, basically reshaping how expatriates are employed and retained within the nation. These new laws, launched by the Immigration Department of Malaysia and the Ministry of Human Resources, impose stricter necessities on hiring international staff, renewing employment passes, and making certain that expatriate employment contributes to native expertise improvement.

With firms now dealing with obligatory pre-approval processes, longer processing instances for employment move renewals, and new internship obligations tied to expatriate hiring, the modifications are set to considerably affect companies and people in search of work alternatives in Malaysia.

As the nation strikes to tighten management over its international workforce, employers and expatriates should navigate a extra advanced system that calls for strategic planning and strict compliance to keep away from disruptions. So, if you happen to want particulars on these important modifications and their implications, learn on for the complete information story right here.

What’s Changing? – 3 Major Things Listed Below!

1# Stricter Rules for Hiring Foreign Workers – Section 60K of Employment Act

Malaysia is tightening its grip on international employee employment, requiring obligatory pre-approval earlier than firms can rent expatriates and right here’s what’s new:

• • All international employee recruitment purposes should now undergo the ePPAx system (Integrated Foreign Workers Management System).
  • Construction sector employers should meet further necessities.
  • Employers will now obtain approval certificates through the ePPAx system as a substitute of e-mail.
  • The approval is legitimate for 12 months.

Why Does This Matter? These modifications improve scrutiny on firms hiring expatriates, making certain they prioritize hiring native expertise earlier than contemplating international staff. Without pre-approval from Malaysia’s Labour Department (JTKSM), Employment Pass purposes will likely be rejected.

2# Stricter Rules for Employment Pass Renewals and Category Changes

In a sudden announcement by the Malaysia Digital Economy Corporation (MDEC), international workers who want to change their Employment Pass class (e.g., upgrading from Category 3 to Category 2) will now face new hurdles:

• • Companies should submit a ‘Change of Pass Category’ letter when renewing Employment Passes.
  • The present move have to be canceled first, and then a brand new application have to be submitted.
  • A 30-day transition interval will likely be offered, throughout which the brand new application have to be accomplished.
  • Effective Date: January 1, 2025.

Why Does This Matter? This new requirement means longer processing instances for expatriate work visas. Employers are suggested to begin the renewal course of not less than three months earlier than expiry to keep away from issues and employment gaps.

3# The 1:3 Internship Policy – Balancing Expat Hiring with Local Talent

Malaysia is revolutionizing its expatriate hiring course of by imposing the 1:3 Internship Policy, also referred to as the Progressive Policy on Expatriate Contribution to Local Talent Development. Under this rule:

• • For each one expatriate employed, firms should supply three internship positions to native Malaysian college students.
  • Companies will likely be required to allocate internship placements capped at 2% of their complete workforce.
  • The pilot section begins February 15, 2025, to December 31, 2025, for Tier 1 and Tier 2 firms (multinational companies, authorities-linked firms, and conglomerates).
  • Full enforcement begins January 1, 2026.

Why Does This Matter? Malaysia goals to stability expatriate hiring with native workforce improvement, making certain that whereas international professionals contribute to the economic system, in addition they assist nurture native expertise. Although non-compliance gained’t entice penalties, firms that observe this coverage will get preferential consideration for Employment Pass approvals.

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