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InsightMonthly Roundup

February 2026 Monthly Roundup

February 25, 20262 min read

Your monthly guide to regulatory and workforce developments in Malaysia.

February 2026 brought continued adjustments to workforce governance and operational processes, with updates affecting worker accommodation compliance and immigration procedures. These developments highlight the importance of proactive planning as employers navigate evolving regulatory expectations.

Malaysia Updates Act 446 Accommodation Rental Cap

Malaysia has amended the Employees’ Minimum Standards of Housing, Accommodations and Amenities Act 1990 (Act 446) with the gazettement of P.U. (A) 49/2026, introducing an updated maximum rental cap for worker accommodation.

  • Previous cap: RM100 per month
  • New cap: RM150 per month
  • Effective: 1 March 2026

The revision provides employers with slightly greater cost flexibility while reinforcing the importance of compliant housing arrangements. Employers should review existing accommodation agreements, deduction practices, and related documentation to ensure alignment with the updated regulatory limit and avoid compliance issues as the new cap takes effect.

Read more here.

Manual Processing Requirement for First-Time Foreign Arrivals in Penang

Recent reporting indicates that first-time foreign workers arriving in Penang will now undergo manual processing upon entry, as part of efforts to enhance immigration oversight and proper documentation for new arrivals.

This development suggests a tightening of procedural protocols at entry points, requiring employers and recruitment stakeholders to ensure that all pre-arrival documentation and processes are fully prepared and compliant to minimise delays.

Organisations that bring in new foreign workers should factor this into their onboarding and deployment planning, as manual processing may extend clearance timelines for first-time arrivals.

Source

Osadi: Your Partner in Workforce Management

At Osadi, we are committed to supporting our clients through these regulatory changes. We’re here to ensure your workforce remains efficient, compliant, and future-ready. Stay tuned for more updates, and don’t hesitate to reach out to our team for personalized assistance as we navigate 2026 together.

Prepared by Ken Wooi
Business Development Team
bdteam@osadi.com.my