In a report by FMT, the government is considering stopping expatriates who are paid less than RM10,000 from being employed for skilled jobs in the country.
There are currently three classes of employment passes, ranging from Category I to Category III. Category I is for jobs paying RM10,000 and up, Category II is for work paying between RM5,000 and RM10,000, and lastly, Category III is for expatriates earning below RM5,000.
Source: Expatriate Services Division
HR Minister M Kulasegaran has stated that Putrajaya intends to discontinue the Category II and Category III Passes, keeping only Category I. According to him, Categories II and III will be phased out gradually.
“We hope this can be done as soon as possible,” Kulasegaran said to reporters at the opening of the new Malaysia Expatriate Talent Service Centre (MYXpats Centre) yesterday (28 Feb).
Source: Malay Mail
With Malaysia being reported as “cheapest place in the world to hire expats“, it can be more advantageous for many companies to hire more expats, leaving fewer jobs on the market for locals and subsequently increasing unemployment rates.
However, given that one of the main concerns is the mismatch of local skills, there’s a question of whether Malaysians can rise to fill the seats of “skilled positions”.
“The government is committed to safeguarding the interests of the Malaysian workforce while balancing the need for expatriate talent, especially those with the expertise needed by the priority sectors spearheading Malaysia’s economic growth,” he said.
Reaffirming the government’s priority to narrow the skill gap and ensure more Malaysians can fill up the jobs in the second and third categories, Kulasegaran added that the plan will first be discussed with stakeholders.
Source: FMT
Sounds like a very interesting proposal. Do you think limiting expatriates from the country is the right move? Will Malaysians be capable of taking up these positions? Let us know your thoughts in the comments!
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