Talent Mobility in Asia
The Malaysian government, through MIDA, implemented a new visa policy for expatriates on June 1, 2026. The aim is to attract high-value investments, expedite the arrival of skilled talent, and ensure the transfer of knowledge to the local labor market.
Within the framework of its ambitious development plans, such as the Thirteenth Malaysian Plan (RMK-13) and the vision Malaysia MADANIThe Malaysian government has launched a sweeping reform of its regulatory framework for recruiting foreign talent. The new strategy, which came into effect last 1 June, 2026It is structured around two key axes: the review of the wage policy for the Employment Pass (EP) and the optimization of the expatriate management system of the Malaysian Investment Development Authority (MIDA).
The main objective is to consolidate Malasia as a preferred destination for high-value investment, recognizing that access to global talent is a critical factor for business success. The new regulations seek a balance between facilitating the arrival of highly qualified professionals and fostering the development of local talent, ensuring that the presence of expatriates complements and enriches the country's professional landscape.
New salary categories for the Employment Pass (EP)
The revised policy for the Employment Pass, managed by the Ministry of the Interior (MOHA)It establishes a new salary structure by categories designed to align the hiring of expatriates with the country's strategic needs. These categories segment permits according to the level of specialization and responsibility, linking visa durations to specific knowledge transfer plans.
Category I is reserved for executive leadership roles and highly specialized professionals, with a minimum salary of 20.000 ringgit per month and leaves of up to ten years. Category II , for salaries between 10.000 and 19.999 ringgit, also allows stays of up to ten years, but requires a mandatory localization plan to transfer skills to Malaysian employees. Finally, Category III , with salaries from 5.000 to 9.999 ringgit (with a minimum of 7.000 for the manufacturing sector), limits passes to a maximum cumulative period of five years and requires a structured succession plan.
| Category | Monthly Salary (MYR) | Pass Conditions and Duration |
|---|---|---|
| Category I | 20.000 and higher | Up to 10 years. For executive leadership and high specialization. |
| Category II | 10.000 - 19.999 | Up to 10 years. Mandatory location plan required. |
| Category III | 5.000 – 9.999 (Min. 7.000 in Manufacturing) | Maximum cumulative period of 5 years. Requires a structured succession plan. |
Process optimization through the MIDA Expatriate System (MES)
In parallel with the wage reform, the MIDA has improved its digital platform, the MIDA Expatriate System (MES)to centralize and streamline the management of applications. Under the new framework, the MIDA directly processes and approves applications for the Categories I, II and III of EPAs well as Professional Visitor Passes (PVP) and Employee Passes.
This unification is achieved through the single integration platform Xpats GatewayThis system allows a end-to-end tracking of the applications, improving transparency, inter-institutional coordination, and reducing administrative duplication. Furthermore, it provides the government with greater visibility into the actual foreign talent needs of companies operating in the country.
Priority for local talent: the MYFutureJobs mandate
A key component of the new framework is the safeguard to ensure that Malaysian citizens continue to be given priority for employment opportunities. Through the mandate known as "Local-First Mandate"Companies wishing to hire an expatriate are now required to advertise the vacancy beforehand on the official portal MYFutureJobs for a minimum period of 14 working days. This measure ensures that expatriate appointments align with genuine industry needs that cannot be met by the local market at that time.
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