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InsightMonthly Roundup

May 2025 Monthly Roundup

May 21, 2025May 26th, 20252 min read

Your monthly guide to regulatory and workforce developments in Malaysia

Cross-Sector Transfers for Migrant Workers Approved

The Malaysian government has officially greenlit cross-sector transfers for migrant workers, allowing greater mobility between industries. This policy aims to address labour shortages more flexibly by enabling employers to hire experienced workers already in Malaysia, without restarting the recruitment process.

Implementation details are still being finalized.

Immigration Circular: Expanded Quota Approvals and Case-by-Case Hiring

A new circular issued by the Immigration Department (6 May 2025) introduces several key developments:

  • Tourism sub-sectors granted one-off quota approval for 15,802 workers
  • 23,780 workers approved for the security services sector (Nepal)
  • Case-by-case quota applications allowed in:
    • Manufacturing (replacements and new MIDA investments)
    • Mining and quarrying (strategic minerals)
    • Agriculture (vegetables, fruit, industrial crops)
    • Services (laundry, cleaning, cargo handling, etc.)

Employers applying for replacements must now submit Check-Out Memos (COMs) and verification documents.

New Rule: Employers Must Escort Foreign Workers Upon Exit

A new enforcement rule requires employers to escort foreign workers to designated immigration checkpoints (e.g. KLIA) when their employment ends.

Failure to comply may result in loss of future hiring quota.

This rule is part of efforts to reduce overstaying and illegal employment. Employers must retain proof of worker departure to remain in good standing.

Malaysia-China MOU: Visa-Free Travel, But Not for Employment

Following a bilateral agreement, Malaysia and China now enjoy mutual visa-free entry for stays up to 90 days—but only for tourism and short-term business.

Employment and long-term business travel still require valid visas.

Employers hiring Chinese nationals must follow standard procedures. Osadi can support with legal visa applications and processing. Reach out to us to learn more.

Read the source report here.

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.