New Applications for Category 3 Employment Passes Now Accepted

New Regulation or Official Guidance

Author: Tan Su Ning, Attorney at Law – Skrine

New applications for Category 3 expatriate employment passes for jobs paying below RM5,000 will now be accepted only on a case-by-case basis with priority given to technical jobs, said the Immigration Department. This comes on the heels of a recent announcement by Human Resources Minister M. Kulasegaran that the government is phasing out Category 3 and Category 2 expatriate employment passes in a bid to open up more job opportunities to locals. The Category 3 employment pass allows expatriates who are earning the basic monthly salary of RM3,000 to RM4,999 with an employment contract of up to 12 months to work in Malaysia. In view of the policy, the immigration authorities are now processing applications for Category 3 expatriates on a case-by-case basis, especially for technical positions. There are still no decisions on Category 2 employment passes, as to date.

Outsourcing Companies for Foreign Workers to Be Abolished

New Regulation or Official Guidance

Author: Tan Su Ning, Attorney at Law – Skrine

Outsourcing companies in recruiting and managing foreign workers will be abolished in line with the Malaysian government’s recent policy. This is to ensure better welfare of the foreign workers. The services of outsourcing companies, which supply and manage foreign workers in sectors like manufacturing, construction, as well as in some services and agriculture, was terminated effective March 31, 2019. These outsourcing companies are required to repatriate their foreign workers within the stipulated period to avoid prosecution. Foreign workers who are not involved in the process of changing employers will be terminated through the system.