While acknowledging the policy’s long-term aim of accelerating local talent development, he said a rigid rollout could raise costs and weaken competitiveness. In the short term, Foo said uncertainty or restricted access to specialised talent could slow foreign professional inflows and innovation, particularly in advan­ced manufacturing, digital technology and specialised services where local talent depth is still developing. “As companies focus on hiring more local talent, they will see that the cost of employing Malay­sians is often more affordable. The government will raise minimum salaries for expatriates and limit the duration of their work passes from June 1, aiming to prioritise local talent. The policy, approved by the Cabi­net last October, restructures salary bands for Expatriate Employ­ment Passes and sets defi­ned employment durations, ­balancing foreign expertise with local workforce development.

Source: The Star January 19, 2026 00:39 UTC