The revised policies (including salary requirement changes) will take effect as scheduled from June 1, 2026. However, the ESD (Expatriate Services Division) has announced that the Succession Plan requirement has been postponed to January 1, 2027.
FAQ on Revised Expatriate Salary Policy published by MDEC
MDEC has published an FAQ on the new work visa system.
Key operational topics have been clarified, particularly regarding employment duration, renewals, and practical scenarios
The following are important points from a corporate compliance perspective:
- Employment duration is tied to the employer
- Maximum duration is counted per employing company, not per individual
- Changing employer resets the duration count
- Category change resets the clock
- Moving to a different EP category restarts the employment duration calculation
- No automatic full-term approval
- Even if a category allows up to 5 or 10 years, approval is granted per application (e.g. 1–2 years)
- Renewals remain discretionary and subject to assessment
- Maximum duration is a hard limit in principle
- Once the maximum stay is reached, further renewal under the same category is generally not allowed
- Companies should plan localisation / transition early
- Pass restructuring implications
- Changing EP category requires cancellation and new application
- Work cannot continue until valid approval is secured after cancellation
- Practical transition scenarios clarified
- No need to leave Malaysia during category change (subject to valid status)
- Salary misalignment at renewal may trigger forced category downgrade or restructuring
Key Takeaway
The revised framework introduces a more structured and time-bound approach to expatriate employment, requiring companies to actively manage:
- duration tracking
- category strategy
- workforce succession timing