Malaysia will introduce tougher regulations for foreign workers beginning in June 2026, requiring significantly higher minimum salaries to qualify for work visas. In some cases, the minimum wage threshold will nearly double. The government will also impose a time limit on how long employers can sponsor the same visa holder. The decision came without prior notice, raising uncertainty among expatriates about long-term plans such as buying homes or cars.

Malaysia, which transformed into one of Southeast Asia’s major economies after gaining independence from the United Kingdom in the 1960s, currently hosts about 2.1 million registered foreign workers. Most are employed in manual labor, earning around 1,700 ringgit per month, while a smaller group works in high-paying sectors like finance, semiconductors, and oil and gas. The government’s latest five-year national policy warns that continued reliance on low-skilled foreign labor could hinder technological advancement.

Analysts and business leaders noted that the new policy could raise costs for companies dependent on mid-level expatriate labor but may also encourage local workforce development if implemented effectively.