Your monthly guide to regulatory and workforce developments in Malaysia.
Malaysia’s workforce and immigration landscape continued to shift in June 2026, with several updates affecting expatriate applications, Employment Pass requirements, succession planning, and foreign worker recruitment discussions.
For employers, the key message is clear: workforce planning is becoming more structured, more digitalised, and more closely linked to compliance and long-term talent development.
Here are the key updates employers should take note of this month.
MIDA Expatriate System becomes the main submission platform
From this date, MES serves as the sole submission platform for expatriate-related applications for the Manufacturing and Selected Services sectors under MIDA’s purview. This includes new and renewal applications for Employment Pass, Professional Visit Pass, EP Foreign Graduate, and Dependent Pass.
Applications submitted before the full rollout date will continue to be processed through the respective systems until completion. However, new submissions under MIDA’s purview must now go through MES.
What this means for employers
Employers under MIDA’s scope should ensure their HR, admin, and mobility teams are familiar with the MES process and avoid using outdated submission channels.
For companies managing expatriate applications, this is not just a technical change. It affects how applications are prepared, submitted, monitored, and followed up.
Clear internal coordination will be important to avoid delays, especially for companies with upcoming new applications, renewals, or dependent pass submissions.
Read Osadi’s earlier article on the MIDA Expatriate System (MES) here.
Revised Employment Pass salary policy takes effect
The revised Employment Pass salary policy also took effect on 1 June 2026.
Under the revised framework, the minimum salary thresholds for Employment Pass Categories I, II, and III have been updated. The revised thresholds are:
- Category I: RM20,000 and above
- Category II: RM10,000 to RM19,999
- Category III: RM5,000 to RM9,999
The revised policy also introduces a more structured employment duration framework, with different maximum durations depending on the Employment Pass category.
What this means for employers
Employers hiring or renewing expatriates should review their existing salary structures and upcoming Employment Pass applications carefully.
This update may affect:
- expatriate hiring budgets
- renewal planning
- role classification
- workforce cost projections
- internal approval timelines
For companies with existing expatriates or upcoming new hires, early planning is important. Salary thresholds should be reviewed before submission to avoid application delays or compliance issues.
For a fuller breakdown of the revised EP salary requirements, read Osadi’s earlier article here.
Succession plan requirement to be implemented from January 2027
While the revised expatriate salary policy took effect on 1 June 2026, the requirement to submit and comply with the succession plan will only take effect from 1 January 2027.
The succession plan requirement is intended to support a structured transfer of knowledge and expertise from expatriates to local employees throughout the expatriate’s employment tenure.
What this means for employers
Although the requirement does not take effect immediately, employers should not wait until 2027 to prepare.
Companies should begin identifying suitable local successors, planning knowledge transfer arrangements, and reviewing internal talent development structures.
This is especially relevant for employers that rely on expatriates in technical, managerial, or specialised roles. Over time, expatriate hiring is expected to be assessed not only based on business need, but also on how companies develop local talent alongside foreign expertise.
Malaysia-Bangladesh labour recruitment discussions place focus on ethical recruitment
The discussion comes after previous concerns over recruitment irregularities, debt bondage, worker exploitation, and cases where workers arrived in Malaysia without the promised jobs.
Both governments have expressed the need for a more transparent and fair recruitment process, with stronger attention on worker welfare and reduced reliance on excessive intermediaries.
At this stage, this should be viewed as a policy development to monitor rather than a confirmed reopening.
What this means for employers
For employers facing labour shortages, any potential reopening of recruitment channels may be significant. However, the bigger issue is not only whether recruitment resumes, but how it is managed.
Employers should be prepared for stronger expectations around ethical recruitment, proper documentation, worker welfare, and responsible employment practices.
If recruitment pathways expand in the future, companies that already have proper workforce planning, accommodation arrangements, and compliance processes in place will be better positioned to respond.
Looking ahead
June 2026 highlighted three major workforce themes for employers in Malaysia.
First, expatriate applications are becoming more digitalised and structured. Second, Employment Pass requirements now require closer cost and eligibility planning. Third, foreign worker recruitment discussions continue to place stronger emphasis on transparency, ethics, and worker protection.
For employers, workforce management can no longer be treated as a reactive administrative task. It now requires forward planning across recruitment, documentation, compliance, accommodation, talent development, and long-term workforce strategy.
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
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