Manager
Attorney at Law (Germany)
Malaysia: Revised expatriate system policy
- From the ASEAN Newsflash, Issue Q3 2026
- MIDA prioritizing local talent
- Revised salary thresholds, employment duration limits and succession planning
- Dependant passes
As part of Malaysia’s broader efforts to reduce reliance on foreign labour and prioritise local talent, MIDA introduced a revised expatriate system effective 1 June 2026. The new policy introduces revised salary thresholds, employment-duration limits and succession-planning requirements, while extending eligibility for Dependant Passes.
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Background
The revised expatriate policy reflects the objectives of the Thirteenth Malaysia Plan (RMK-13) and Malaysia MADANI, particularly the aim of reducing reliance on foreign labour and prioritising suitably qualified local talent.
New requirements
Centralized Submission Platform – effective 1 June 2026
MIDA centralizes all expatriate-related applications in the Manufacturing and Selected Services sectors through the MIDA Expatriate System (MES), which serves as the sole submission platform. New and renewal applications, including Employment Passes (EP), Professional Visit Passes (PVP), Employment Passes for Foreign Graduates and Dependent Passes, must be submitted through MES using Single Sign-On (SSO) access via the Xpats Gateway.
Existing or pending applications will continue under the respective systems.
Salary thresholds – effective 1 June 2026
The revised policy increases the minimum salary thresholds for EP Categories I, II and III.
| EP category | Current minimum salary | Revised minimum salary |
| Category I | RM 10,000 and above | RM 20,000 and above |
| Category II | RM 5,000 – RM 9,999 | RM 10,000 – 19,999 |
| Category III | RM 3,000 – RM 4,999 | RM 5,000 – RM 9,999 |
Employment Duration – effective 1 June 2026
The new framework imposes cumulative employment caps of five or ten years, depending on the EP category, replacing the previous possibility of indefinite renewals.
Succession Plan Requirement – effective 1 January 2027
Employers must submit and comply with a succession plan aimed at ensuring the structured and systematic transfer of knowledge and expertise from expatriates to local employees throughout the expatriate’s employment tenure.
Dependants – effective 1 June 2026
EP Category III holders are now eligible to apply for Dependant Passes. Expatriates in all three EP categories may therefore bring their dependants.
Summary
| EP Category | Current Minimum Salary |
Revised Minimum Salary |
Employment Pass Duration and Succession Plan |
Dependants |
| Category I | RM 10,000 and above | RM 20,000 and above | up to 10 years | Yes |
| Category II | RM 5,000 – RM 9,999 | RM 10,000 – RM 19,999 | up to 10 years with succession plan | Yes |
| Category III | RM 3,000 – RM 4,999 | RM 5,000 – RM 9,999 | up to 5 years with succession plan | Yes |