Skip to main content

Welcome to 2025. As the new year unfolds, here are the latest updates from Osadi, highlighting key regulatory changes that could affect your workforce planning and compliance strategies.


New Requirements for Employment Pass Applications

Effective January 1, 2025, the Malaysian Immigration Department has implemented an additional requirement for companies applying for changes to the Employment Pass (EP) category. Employers or companies must now submit a “change of category letter” during the approval stage of the application process when switching between categories (Category 1, 2, or 3).

This new process ensures greater clarity and compliance with immigration regulations. Employers are encouraged to prepare in advance by downloading a sample of the required letter from the MDEC website at here.

To avoid delays, it is crucial to attach the required letter to all relevant applications. For further details or assistance, employers can contact the Expats Service Centre via phone at 03-8315 3106/3157 or email expatctr@mdec.com.my.


1:3 Practical Training Policy for Expatriates

The Human Resources Ministry (HR Ministry) has introduced a new policy that emphasizes local talent development while encouraging companies to take a more active role in nurturing Malaysia’s workforce.

The 1:3 Practical Training Policy, set to begin its pilot phase on February 15, 2025, mandates that companies employing expatriates provide three structured internship placements for local students for every expatriate hired. This initiative aims to benefit approximately 100,000 tertiary-level students across Malaysia.

Key highlights of the policy:

  • Applies to companies categorized as Tier I and Tier II during the pilot phase.
  • Companies can receive double tax relief incentives for internship-related costs, such as monthly allowances, training materials, and logistics.
  • Industrial training can be funded up to 50% of levy balances through the HRD Corp Industrial Training Scheme.
  • TalentCorp will manage industrial training placements through its Ilham Kesuma platform, ensuring easy access to resources, placement matching, and advertising.

The policy’s full implementation is scheduled for January 2026. Participating companies stand to gain not only tax incentives but also access to a pool of skilled, job-ready local talent, enabling them to contribute significantly to Malaysia’s economic growth.

For more details on the policy and its implementation, visit TalentCorp’s page here.


FWCMS System for Temporary Work Visit Passes

The Foreign Workers Centralized Management System (FWCMS) is a secure, integrated platform designed to streamline the management of foreign workers in Malaysia. Starting November 1, 2024, the system has been implemented for the following applications:

  • First-Year Temporary Work Visit Pass (PLKS)
  • Visa with Reference (VDR)
  • PLKS Renewals

Beginning February 1, 2025, the system will be fully implemented for all PLKS extensions. This move is part of the government’s effort to enhance efficiency and transparency in foreign worker management processes.

Features and benefits of the FWCMS system:

  • End-to-End Digital Processes
    From application to renewal, all processes are centralized online, reducing paperwork and delays.
  • Real-Time Updates
    Employers can track the status of applications, payments, and renewals with ease.
  • Secure Verification
    A One-Time Password (OTP) is required for each login, ensuring secure access during submissions, checks, and payments.

Employers can access the platform and additional resources through the official FWCMS website at here. Ensuring smooth compliance with the system will help streamline operations and maintain adherence to Malaysia’s immigration policies.


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 2025 together.