#Human Resources #Employer

Malaysia Considers Stopping Expats Below RM10,000 Salary (UPDATED)

by Danial

Mar 01, 2019 at 6:30 PM

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The Malaysian government is considering to stop foreigners from working in jobs with salaries below RM10,000.

The minister of Human Resources M. Kulasegaran said the government was planning to abolish Category II and Category III employment passes given to expatriate workers.

The employment passes are divided into three categories. Category I refers to jobs paying RM10,000 and above, Category II is for salaries between RM5,000 and RM10,000, and Category III is for jobs below RM5,000.

The HR minister said Putrajaya was considering to only save Category I, with the Category II and III to be phased out.

Picture Credit: Bernama

M. Kulasegaran said, “We hope this can be done as soon as possible.” He also said that there will be a discussion with stakeholders before the plan can proceed. The minister said the government wanted to ensure more Malaysians could fill up positions under the second and third category.

In 2018, there were a total 117,000 expatriates working under various sectors, with 2,158 expatriates working under Category III, the minister said.

Update

On 3rd April 2019, Human Resources Minister M Kulasegaran shared a Facebook post on a meeting to discuss the various pending amendments to the country’s Acts under the Ministry of Human Resources (MOHR). Organised by the American Malaysian Chamber of Commerce, the meeting was attended by HR leaders and representatives of multinational corporations (MNCs).

In the Facebook post, Kula explained that topics discussed were primarily related to labour laws, foreign workers, increased cost of doing business and how to decrease these costs, alongside talks about the impacts of the amendments.

The minister wrote: “My team and myself explained our rationale on these amendments but listened to their suggestions and even expressed that we are open to re-looking at certain amendments.

“Clarifying on certain matters, I assured that there (is) no new policy on employment passes for expatriate workers and category III remains and everything remains (at the) status quo.”

He asserted that the ministry is determined to maintain a healthy business environment for both MNCs and local companies.

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