KESUMA conducts further studies to refine Malaysia’s new expatriate policy, aiming to balance foreign expertise with local talent development and succession planning.
PUTRAJAYA: The Ministry of Human Resources (KESUMA) is conducting further studies to refine Malaysia’s new expatriate employment policy before it takes effect on 1 June.
Minister Datuk Seri R Ramanan said the ministry is reviewing all aspects to ensure a holistic introduction that meets the nation’s medium and long-term workforce needs.
“We are actually doing a study, which needs more data and details,” he told reporters after a ministry event.
Ramanan expressed hope for a final decision on the policy’s remaining elements by the end of this month or early next month.
He outlined the policy’s objective to incentivise the return of overseas Malaysian talent by offering competitive, high-paying local jobs.
The minister emphasised that foreign expertise remains crucial for knowledge transfer and specialised skills to create an integrated ecosystem.
Commenting on the current 10-year cap on expatriate passes, Ramanan highlighted the importance of succession planning for high-value positions.
“For high-paying jobs, after 10 years, shouldn’t we first offer them to Malaysian citizens before offering them to foreigners?” he said.
He noted succession planning currently applies to Category 2 and 3 expatriates, with Category 1 also under review.
The Home Ministry announced the policy will come into force on 1 June, giving employers time to prepare.
It includes a restructuring of salary thresholds for Employment Pass categories and introduces fixed employment durations for expatriates.
The Cabinet approved the policy on 17 October last year, enhancing a framework established in 2016 after engagement sessions with stakeholders since 2022.
