KESUMA Conducting Further Studies To Refine New Expatriate Employment Policy - Ramanan
PUTRAJAYA, Jan 15 (Bernama) -- The Ministry of Human Resources (KESUMA) is conducting further studies to refine the new expatriate employment policy before it takes effect on June 1, said Minister Datuk Seri R Ramanan.
He said the ministry is currently reviewing all aspects of the policy to ensure it is introduced in a holistic and well-coordinated manner, taking into account the nation's medium and long-term workforce needs.
"We are actually doing a study, which needs more data and details. As part of our medium and long-term planning, we will take the necessary steps as they come," he told reporters after the monthly assembly and KESUMA 2026 New Year address ceremony today.
Ramanan explained that KESUMA is finalising the framework, with ongoing discussions since the start of the year amid a heavy schedule of Cabinet and post-Cabinet meetings.
He expressed hope that a final decision on the policy's remaining elements could be announced by the end of this month, or early next month at the latest.
Outlining the policy's objective, Ramanan said the government seeks to incentivise the return of overseas Malaysian talent by offering local jobs that are both competitive and high-paying.
He emphasised that foreign expertise still remains crucial for national development, particularly in facilitating knowledge transfer, training, and specialised skills, to foster a single, integrated ecosystem where local and foreign professionals can coexist productively.
Commenting on the current 10-year cap on expatriate employment passes, Ramanan highlighted the importance of succession planning to ensure that high-value positions are ultimately filled by Malaysians, particularly after long-serving expatriates complete their tenure.
“For high-paying jobs, after 10 years, shouldn’t we first offer them to Malaysian citizens before offering them to foreigners?” he said, adding that succession planning is currently applicable to Category 2 and 3 expatriates.
He said KESUMA is also reviewing Category 1 expatriates to ensure a comprehensive approach, noting that decisions must be made carefully as they have significant implications on workers’ livelihoods.
In media reports yesterday, the Home Ministry announced that the new expatriate employment policy will come into force on June 1, allowing employers and industry players sufficient time to prepare.
The policy, including a restructuring of salary thresholds for Employment Pass Categories I, II, and III, as well as the introduction of fixed employment durations for expatriates, was approved by the Cabinet on Oct 17 last year.
The Ministry further explained that the new policy enhances the existing framework established by the Economic Council's decision of Dec 20, 2016, following a series of comprehensive engagement sessions held with industry players and stakeholders since 2022.
-- BERNAMA
