Accelerating Talent Mobility: Strengthening Malaysia’s Expatriate Framework for High-Value Investments

Malaysia’s ambitions under the Thirteenth Malaysia Plan (RMK-13) and Malaysia MADANI rest on a simple truth — quality investment goes where the talent is. That means growing our own skilled workforce while giving businesses the global expertise they need to thrive here.

Central to achieving this vision are two complementary initiatives: The Revised Employment Pass (EP) Salary Policy (which came into effect on 1 June 2026) and the enhanced MIDA Expatriate System (MES). Together, these measures reinforce Malaysia’s commitment to attracting high-value investments, promoting knowledge transfer, and creating greater opportunities for Malaysia talent.

The Ministry of Home Affairs (MOHA)’s revised employment pass supports Malaysia’s long-term workforce development objectives by ensuring that expatriate employment complements local talent development.

Effective 1 June 2026, the revised Employment Pass categories are as follows:

• Category I : Minimum monthly salary of RM20,000 and above, with passes issued up to 10 years. These positions are intended for executive leadership and highly specialised professionals who contribute strategic expertise and technology transfer
• Category II : Monthly salary ranging from RM10,000 to RM19,999 with passes issued for up to 10 years and supported by mandatory localisation plan to facilitate knowledge transfer to Malaysian employees.
• Category III : Monthly salary ranging from RM5,000–RM9,999, with a minimum monthly salary of RM7,000 for the Manufacturing and Manufacturing-Related Services. Category III Employment Passes are valid for a cumulative maximum of 5 years and require a structured succession plan to support the localisation of specialised skills.

The revised framework reinforces the principle that expatriates should complement, rather than replace, the local workforce.  By encouraging capability development and succession planning, it also ensures companies retain access to specialised professionals who may not yet be readily available locally.

Complementing the revised salary policy is the enhanced MIDA Expatriate System (MES), which streamlines the management of expatriate applications through a more integrated and transparent process.

Under the enhanced framework, MIDA now processes and approves Employment Pass Categories I, II and III, as well as Professional Visit Pass (PVP) and Dependant Pass applications within its purview through MES. This integration enables end-to-end application tracking, improves transparency and inter-agency coordination, reduces administrative duplication, and provides better visibility of companies’ foreign talent requirements.

Beyond improving efficiency, the enhanced process supports Malaysia’s commitment to developing talent by ensuring expatriate appointments are aligned with genuine industry needs and accompanies by appropriate localisation measures.

The enhanced expatriate framework incorporates several safeguards to ensure Malaysians continue to receive priority considerations for employment opportunities.

1. The Local-First Mandate (MYFutureJobs): Companies are required to advertise vacancies on the MYFutureJobs portal for at least 14 working days, before applying for expatriate positions, giving qualified Malaysians the first opportunity to fill available roles.
2. Limited Exemptions: Exemptions are limited to specific circumstances, including key leadership positions and highly specialised roles that meet prescribed salary thresholds (RM15,000 and above). Where appropriate, employers may also be required to obtain certification from SOCSO (PERKESO), confirming that suitably qualified local talent is not readily available.
3. Rigorous Evaluation: Applications submitted through MES are evaluated by the Technical Committee on Expatriates (JTPDPS), which assesses workforce requirements, knowledge transfer initiatives, and succession planning before approvals are granted.
4. Immigration Integration: Following MIDA’s approval, applications proceed to Immigration endorsement.

This coordinated approach balances business needs with national workforce priorities, enabling companies to access specialised global talent while supporting the long-term development of Malaysian professionals.

Malaysia’s revised Employment Pass Salary Policy and the enhanced MIDA Expatriate System represent more than regulatory improvements. Together, they reflect the nation’s commitment to building a competitive, resilient, and future-ready workforce.

By balancing access to specialised global expertise with stronger localisation, knowledge transfer, and workforce development initiatives, these measures support the growth of high-value industries while creating greater opportunities for Malaysians in higher-skilled, higher-income jobs.

As Malaysia continues to strengthen its investment ecosystem, MIDA remains committed to facilitating quality investments and supporting businesses through transparent, efficient, and investor-friendly processes that contribute to sustainable economic growth, and strengthen long-term national competitiveness.

For more information on EP and MES, please contact Industry Talent Management and Expatriate Division at https://www.mida.gov.my/staffdirectory/industry-talent-management-and-expatriate-division/