KUALA LUMPUR, Nov 3, 2025 — The Malaysian government has decided to maintain the freeze on approvals for new foreign worker quotas , a move...
KUALA LUMPUR, Nov 3, 2025 — The Malaysian government has decided to maintain the freeze on approvals for new foreign worker quotas, a move aimed at reducing reliance on foreign labour and creating more job opportunities for local citizens.
The decision, announced in Parliament today, aligns with the government’s long-term labour market strategy to cap the share of foreign workers at 15% of the total workforce by 2025, reducing it further to 10% by 2030 and 5% by 2035.
Foreign Workforce Near Limit
According to the Ministry of Human Resources, the number of registered foreign workers has already approached the national limit.
As of October 15, 2025, Malaysia recorded over 2.13 million active foreign employees, covering sectors such as manufacturing, construction, plantations, and services.
While the freeze remains in place, the government confirmed that case-by-case approvals may still be granted for critical industries such as agriculture, plantation, and mining, where local labour shortages persist.
Focus on Local Talent and Skills Development
To curb dependency on foreign labour, Malaysia is strengthening Technical and Vocational Education and Training (TVET) programmes to equip local workers with in-demand skills.
The government also plans to implement the Multi-Tier Levy Mechanism (MTLM) starting 2026, which will introduce differentiated levy rates for foreign workers across industries.
Officials say the policy aims to prioritize local employment, enhance economic competitiveness, and ensure Malaysia meets its long-term workforce sustainability goals.
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