16/01/2026

FRIDAY | JAN 16, 2026

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New expat employment policy augurs well for locals

Ű BY FAIZ RUZMAN newsdesk@thesundaily.com

KUALA

LUMPUR:

The

government’s expatriate employment policy, which raises minimum salary thresholds and introduces fixed employment limits to encourage the hiring of more local talent in the workforce augurs well for Malaysians, say labour economists. Socio-Economic Research Centre executive director Lee Heng Guei told theSun that higher salary requirements for hiring foreign professionals could help improve local wage structures while encouraging companies to consider Malaysians first. “If hiring a foreign expert requires paying RM10,000 or RM20,000, employers would naturally consider hiring locals who have the capability. “Expatriates are usually in senior or mid-to-high management new

competitive in a cost sense. Thirdly, expatriates are employed for very specific reasons based on experience and expertise. This will not change.” Williams cautioned that the new rules could influence how foreign professionals and investors view Malaysia. “The economic risks of the new Home Ministry rules are that they give a very bad signal that Malaysia is unfriendly to foreigners. This will harm not just employment but also investment.” Under the new policy announced by the Home Ministry, minimum monthly salary thresholds for expatriate employment pass holders will increase from June 1. Category 1 minimum salaries will rise from RM10,000 to RM20,000, Category 2 salaries of RM5,000- RM9,999 will increase to RM10,000 RM19,999, and Category 3 of RM3,000-RM4,999 will rise to RM5,000-RM9,999, with a higher floor of RM7,000 for manufacturing related services. Expatriate employment pass categories are determined mainly by the salary offered and the seniority of the role, with higher-paying positions classified as higher categories. Previously, expatriate employment did not have a fixed maximum duration. Under the new framework, Category 1 and 2 holders may work for up to 10 years while Category 3 holders are limited to five years, all with mandatory succession plans for local replacements. The government said the policy aligns with the 13th Malaysia Plan objective to reduce reliance on foreign labour and prioritise qualified local talent over the hiring of expatriates.

rely on foreign expertise. This is not unique to Malaysia. Every country must balance localisation with the need for foreign talent. “The government wants to avoid cases in which locals are available but not given opportunities as companies continue to hire expatriates. Raising the salary threshold ensures that foreign hires are limited to specialised, high-value roles.” Lee said the new five to 10-year cap on employment duration is reasonable as it gives companies enough time to train local successors to take over the roles that were previously handled by expats. Putra Business School Masters and Doctorate Course director Prof Dr Ahmed Razman Abdul Latiff said the policy could help correct labour market mismatches without harming business growth. “Malaysia has more low-skilled workers than medium-and high-skilled ones. This policy could help more qualified locals access better-paying roles previously offered to expatriates. “As it is implemented gradually, with expatriates still allowed to work for up to 10 years, employers have time to plan without disrupting operations.” In contrast, Williams Business Consultancy director Prof Geoffrey Williams said the policy was based on misconceptions about expatriate employment. “Malaysia does have a strong pool of high-skilled local professionals but it is not necessary to replace expatriates. The claim that expatriates are taking jobs from locals is not true. “Firstly, there are too few expatriates to make that claim meaningful. Secondly, it is already costly to pay for visas, so they are not

o Higher salary requirements for employing foreign professionals could improve domestic wage structures, encourage hiring of Malaysians

increase accordingly.” Lee acknowledged that some industries still depend on foreign expertise due to skills gaps. “For certain sectors in which local talent is not available, companies have no choice but to

positions. In sectors like IT and banking, their salaries often exceed RM10,000 and can reach RM20,000 or more. “These positions are classified under the expert category, so local wages would also need to

Lee said the government wants to avoid cases where locals are available but not given opportunities as companies continue to hire expatriates. – ADAM AMIR HAMZAH/THESUN

Block on Grok to be lifted only after safety fix: Fahmi KUALA LUMPUR: Malaysia will lift its temporary block on access to the artificial intelligence tool Grok on X only after the platform operator fully resolves issues related to the generation of harmful content. content that could be misused. “If they succeed in disabling the production of materials considered online harm or harmful, the government will end the temporary ban on Grok,” he said after launching the Centre for Responsible Technology yesterday. and free from harmful content. On Jan 11, the Malaysian Communications and Multimedia Commission (MCMC) ordered a temporary block on access to Grok for users in Malaysia, effective the same day. The block was imposed after repeated misuse to generate non-consensual manipulated images involving women and children, despite regulatory notices issued to X Corp and xAI LLC. Fahmi said the ministry also took note that X had disabled several prompts that enabled the creation of inappropriate images via Grok but MCMC found the measures insufficient. He said the government is Communications Minister Datuk Fahmi Fadzil said before the restriction is removed, X must comprehensively demonstrate that Grok could no longer produce video or image Fahmi said the government wants social media platforms to be safer, particularly for children and families, pornographic and explicit content, including indecent material and

pursuing a cooperative approach through established legal and regulatory channels, in line with the Online Safety Act 2025, which will be advised by the Online Safety Committee that includes

representatives from the Office of the Children’s Commissioner, the police and relevant agencies. – Bernama

See also page 8

Action on AI chatbox on X hailed KUALA LUMPUR: The move to temporarily block the Grok AI chatbot on X is seen as a timely and appropriate measure to protect users, particularly children and women, from potential exploitation and misuse of the technology. Malaysian Cyber Consumer

that could lead to sexual exploitation or harm users’ dignity is crucial in keeping digital space safe. She said it sent a clear regulatory signal to digital platforms operating in Malaysia. “It is also appropriate for the Grok provider to be penalised under Onsa or existing laws because the AI function poses a serious risk of online harm.” She said the move shows that enforcement is not about censorship but about using the law to protect users, especially children. – Bernama

web platforms via apps or software not available on legitimate platforms such as Google Play or the Apple App Store. “Allowing the same to happen on a legitimate platform is a big blow to both users and the government because it’s clearly wrong, illegal and seems uncontrolled. Platform providers should take responsibility if the technology or such function belongs to them.” Voice of the Children co-founder and chairman Sharmila Sekaran said MCMC’s swift action to block features

abuse generate pornographic and sexually explicit content as well as non-consensual manipulated images, including material involving women and children, despite prior regulatory action against X Corp and xAI LLC. Siraj said the Grok case underscores the importance of online safety laws such as Onsa, which ensure that platform providers are responsible for maintaining a safe digital space for users. “Previously, features such as deepfakes were exploited on dark of Grok to

platform’s generative AI function. “The potential for criminals to misuse this technology poses a threat not only to children and women but to anyone. Men too, irrespective of background or skin colour, are at risk if their images are manipulated without consent. “This measure should serve as an example to other digital platforms to ensure that they take greater responsibility for user safety.” The Malaysian Communications and Multimedia Commission (MCMC) said the block followed repeated

Association president Siraj Jalil said the measure is in line with the enforcement of the Online Safety Act (Onsa) 2025 on Jan 1, particularly following concerns over the generation of sexually manipulated content by users through the