November 2025 Monthly Roundup

Your monthly guide to regulatory and workforce developments in Malaysia

Expatriate Exit Clearance Mechanism (Effective 20 November 2025)

The Immigration Department of Malaysia (JIM) has introduced a new requirement for managing the departure of expatriates holding Employment Passes (EP). Companies must now update expatriate exit information through the eXpats System.

Key points:

• Applies to expatriates under MD and Non-MD companies with Employment Passes.
• Companies must update exit details for expatriates who:
  • Have expired passes, and
  • Have no exit record or did not shorten their pass validity.
• Exit information must be submitted within 30 days from pass expiry.
• Accepted supporting documents include:
  • Passport with exit endorsement
  • Flight ticket or boarding pass
  • Amended EP by Malaysian missions abroad
  • Employer declaration with Form AM80
  • Other relevant documents
• Failure to report on time may lead to new expatriate applications being placed on hold.

Malaysia’s Job Market to Remain Resilient Through 2026

Economists and analysts project Malaysia’s labour market will stay strong into 2026, driven by key sectors such as services and construction. Domestic demand, a rebound in tourism, and policy support under Budget 2026 are cited as major growth levers. Employment grew modestly in early 2025 and the unemployment rate held at around 3 %. Infrastructure investments and green technology initiatives are expected to reinforce job creation and workforce stability.

Source

Foreign Worker Numbers in Malaysia Fall 13% to 2.13 Million (3 Nov 2025)

As of 15 October 2025, Malaysia’s active registered foreign workforce stood at approximately 2,132,578, marking a 13% drop from 2,452,010 in the same period last year.

The decline spans multiple sectors: manufacturing (622,388), construction (589,684), services (390,607), plantation (263,131), agriculture (158,628), domestic helpers (107,375), and mining/quarrying (765) as reported in Parliament.

The government attributes the reduction to efforts to lower dependence on foreign labour, cap foreign worker numbers to 15% of the total workforce under the 12th Malaysia Plan, and aim for 10% by 2030.

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 2025 together.

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