Malaysia temporarily eases rules on hiring foreign workers in Q1 2023

Employers with exemptions and conditional approval in the quarter will be allowed to employ foreign workers from 15 source countries based on their capabilities and needs.

As shared in a recent statement by Minister of Home Affairs Datuk Seri Saifuddin Nasution Ismail, Malaysia will be temporarily easing its rules on hiring foreign workers in the first quarter of 2023.

Following a meeting on 10 January 2023, attended by ministers and senior officials from ministries and agencies directly involved in the management of foreign workers (including the Human Resources Ministry), this decision aims to facilitate the entry of foreign workers to drive Malaysia's economic growth in 2023, particularly in Q1 2023. According to Minister Saifuddin, it is estimated that the national economy will increase by 1% of the Gross Domestic Product (GDP) if the influx of foreign workers is accelerated to meet the needs of related sectors.

In view of this, the Special Meeting of the Management of Foreign Workers has decided as follows:

1. First, the Government will introduce the Relaxation of Foreign Workers Employment Plan, driven by the projection of foreign labour needs required by sectors employing foreign workers in Malaysia. Through this plan, employers with exemptions and conditional approval for the first quarter of 2023 will be allowed to employ foreign workers from 15 source countries based on the employer's capabilities and needs without having to go through the prerequisites of employment qualifications and quota qualifications;
2. Second, a series of work visits by the Malaysian delegation will be carried out to selected source countries, with the aim to discuss the safety and welfare of foreign workers in Malaysia. These visits will ensure that the objectives of the Relaxation of Foreign Workers Employment Plan can be achieved. The Minister of Home Affairs will lead the Malaysian delegation to the source countries and the Ministry of Human Resources will also represent the Regulatory Agency; and
3. Third, the meeting also agreed on the implementation of the PATI (unauthorised foreign immigrants) Recalibration Plan 2.0, for the Workforce Recalibration Programme until December 2023. Previously, the PATI Recalibration plan was implemented until 31 December 2022, with the registration of 418,649 unauthorised foreign immigrants for the Workforce Recalibration Programme, and 295,425 unauthorised foreign immigrants for the repatriation programme. According to the Minister, the difference in the PATI Recalibration Plan 2.0 is the setting of more flexible conditions, without neglecting the element of security in the country.

Further details on the Relaxation of Foreign Workers Employment Plan will be provided by the Ministry of Home Affairs in the near future.

Minister Saifuddin clarified that the facilities and relaxations announced are not for an indefinite period, but are only "unprecedented to meet the needs of the country's economic development."

"The government will always ensure that the management of foreign workers in Malaysia is always based on the rule of law and at the same time guarantee that all foreign workers in Malaysia are fairly protected."

Image / Malaysia Immigration Department's Facebook