Malaysia Hiring Trends For Foreign Workers
Foreign employment landscape in Malaysia has completely changed as of December the 20th, 2025. As the government aims to attract only 10 percent of the workforce to the foreign country by 2026, the hiring process has become greatly stricter, digitalized, and skills-driven.
With a shift towards 2026, Malaysia will cease being a mass labor country but shift to a strategic talent country, focusing more on the sectors that will propel the digital economy, green growth and high-tech manufacturing.
The best jobs to hire in 2025-2026 (High Vacancy)
Though government has been opening quota in certain sectors until December 31, 2025, emphasis has shifted to need-based recruitment and new investments.1
- Manufacturing & Semiconductors: The volume hire leader. The high demand has been on Production Operators, Test Technicians and Automation Engineers especially in Penang and Johor due to the Global Tech Upcycle.
- Agriculture & Plantation: General Plantation Workers and Fruit/Vegetable Harvesters have quotas to push back the acute palm oil and rubber industry requirements.2
- Digital/Tech Hubs: Huge recruitment of AI Data Labellers, Cloud Infrastructure Assistants and Cybersecurity Experts because of the investments Cyberjaya and Johor have made by the tech giant.
- Construction: The few Government or GLC Infrastructure Projects (such as MRT extensions) and new accepted private investment are now restricted to recruitment.
- Critical Services: Cleaners, Security Guards, and Cargo Handlers are in constant demand (replacement quotas only).4
The 2025-2026 Policy Updates that You Need to Know
The government by the name of the MADANI has brought some changes that re-owners of the financial and legal environment of international job seekers.
- RM 1,700 Minimum Wage: The minimum wage nationwide is RM 1,700 per employee and fully implemented as of August 1, 2025.5 The minimum wage cannot be fulfilled through allowances and commissions.6
- Compulsory EPF Contributions: Employers together with foreign employees will now be required to make compulsory monthly contributions to the Employees Provident Fund (EPF) of 2% of wages starting October 1, 2025, and this will provide a retirement safety net to the employees first.7
- 1:3 Internship Policy: Starting January 1, 2026, the companies recruiting new expatriates will need to provide internship opportunities to the local students (in the 1:3 proportion) to even out foreign and local talent acquisition.
- The ePASS Revolution: The ePASS is a digital form of the manual passport stickers, and is available through the MYXpats or ESD portals.
The 2026 Recruitment Roadmap: Step-by-Step
It is now a digital-based experience to land a job in Malaysia, facilitated by the One Stop Centre (OSC) of Foreign Worker Management.8
- Application (by Employer): Applications through ePPAx system.9 In 2026, companies are required to apply in relation to Expatriate Projections, and the application must commence on December 15, 2025.10.
- Digital VDR ( Visa with Reference): You are issued with a digital VDR ( once approved ), and this is your authorization into the country.11
- FOMEMA Medical Check: Within 30 days of coming, you will have to be medically examined at a clinic that is registered by FOMEMA.12
- VP(TE) or EP: Once your Visit Pass (Temporary Employment) or Employment Pass is issued digitally after passing the medical.
- 10-Year Cap: Unskilled workers are allowed to renew their permits annually up to 10 years after which they have to be repatriated.
FAQs
Is foreign worker recruitment still frozen?
No. Agriculture, Plantation, and Mining would remain open to quotas through December 31, 2025.13 but Manufacturing and Construction would continue to receive new investment and government projects only.
What is the new required EPF rate?
The employer and the foreign worker should pay 2% each (26) of the monthly gross wage, which becomes effective the salaries paid in October 2025.14.
Is it possible to switch employer or industry?
As a rule, no. The VP(TE) holders are bound to a single employer.15 But recently 2025 amendments permit some case-by-case replacement with a Check Out Memo (COM) when an experienced worker.16
How do I verify a job offer?
Determine whether the agency is registered in FWCMS or ESD portal. Check Out Memo (COM) status also should be checked, though, in case you are a returning worker.
What would become of me in case I do not pass the FOMEMA check?
In case you are found unfit you are to be immediately repatriated. It is the role of your employer to make sure that you leave the country through a COM.
Final Thought
The 2026 outlook of Malaysia is focused on and based on the principle of Quality over Quantity.17 The shift towards RM 1,700 wages and compulsory EPF implies that employers are seeking more flexible and digitally savvy workers. Likewise, in case of technical manufacturing experience or green economy, then you are planning to enter the market at an opportune moment.
Disclaimer
The given job information is only provided on an educational and informational basis. Before application, please ensure that you check official employer or government site (i.e. Malaysian Ministry of Human Resources).