Revision Of Minimum Salary For Employment Pass For Expatriates Is Timely, Will Safeguard Local Talent Pool
KUALA LUMPUR, Jan 13 (Bernama) -- The minimum salary revision for employment passes for expatriates, which will take effect in June 2026, is a strategic move by the government to protect the interests of the local talent pool.
This was stated today by Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid.
The new policy aims to encourage companies in Malaysia to hire more local workers instead of expatriates, whether for temporary or permanent positions, he said.
"It has been our policy for many, many years. In fact, when we approved (employment), we looked at the justification, whether or not these positions can be localised.
"Many of the positions can be localised, especially the non-technical positions (for which) we do not wish to (offer) expatriates anymore because locals can do the job," Sikh Shamsul Ibrahim told reporters after MIDA's media appreciation and networking session here today.
Also present was MIDA's chairman Tengku Datuk Seri Zafrul Abdul Aziz.
The session was also attended by Malaysian National News Agency (BERNAMA) chief executive officer Datin Paduka Nur-ul Afida Kamaludin and BERNAMA editor-in-chief Arul Rajoo Durar Raj.
Sikh Shamsul Ibrahim also dismissed the idea that this move could impact foreign investments in the country.
Describing the move as timely, he pointed out that the last revision was done in 2016.
Sikh Shamsul Ibrahim was commenting on a recent announcement made by the Expats Service Centre on the Malaysia Digital Economy Corporation (MDEC) portal regarding the updated minimum salary requirements for Employment Pass (EP) Categories I, II, and III, as outlined by the Ministry of Home Affairs.
Effective June 1 this year, the current minimum salary for EP Category 1 has been revised to RM20,000 and above (from the current RM10,000 and above).
For EP Category II, the revised salary is RM10,000 to RM19,999 (from the current RM5,000 to RM9,999), and for EP Category III, the salary is revised to RM5,000 to RM9,999 (from the current RM3,000 to RM4,999).
According to the announcement, all new and renewal EP applications submitted from June 1, 2026, onwards must comply with the revised minimum salary requirements.
Companies are strongly advised to plan and align their Foreign Knowledge Worker (FKW) projection accordingly, to avoid potential disruptions to upcoming engagements and renewal applications.
-- BERNAMA