Malaysia reopens foreign worker quota applications for selected sectors, subsectors

The Malaysian government has reopened applications for foreign worker quotas, but strictly limited to specific sectors and subsectors, Home Minister Saifuddin Nasution Ismail said today (19 August).

Following a joint committee meeting between the home ministry and the human resources ministry, Saifuddin said the applications will be reopened on a "case by case" basis for three sectors and 10 subsectors, based on proposals from the relevant ministries, reports Free Malaysia Today.

"The approved sectors are agriculture, plantation and mining, including all their related subsectors," he told a press conference at M Resort & Hotel, Bukit Kiara.

In the services sector, the subsectors permitted to apply for foreign workers are wholesale and retail, warehousing, security services, scrap metal, restaurants, laundries, cargo handling, and cleaning services.

For the construction sector, applications can only be made for government projects. Under the manufacturing sector, only businesses involving new investments under the Malaysian Investment Development Authority will be eligible.

Saifuddin stressed that the practice of allowing anyone to apply for quotas would no longer continue. "Previously, employers could apply, agents could apply, anyone could apply. Now, no. Who can apply? Three sectors and 10 subsectors," he said.

He explained that applications must first be submitted to the relevant ministries before being reviewed by the technical committee on foreign worker management, which includes deputy secretary-generals from the ministries involved.

"For instance, plantation operators would submit applications to the plantation and commodities ministry; agriculture operators to the agriculture and food security ministry; and restaurateurs to the domestic trade and cost of living ministry," Saifuddin said.

"This technical committee will verify applications before presenting them for final approval at the joint committee meeting co-chaired by myself and human resources minister Steven Sim," he added.

On the ceiling for foreign workers under the 13th Malaysia Plan (13MP), Saifuddin said: "Under the 13MP, the economy ministry has set the ceiling for the presence of foreign workers in our country at 10%. Currently, it is 15%."

He said the meeting agreed that the current ceiling of 15% would remain in place until 31 December.

"The meeting agreed that the foreign worker sectoral ceiling for 2025 is set at 2,467,756 workers," he said, adding that the joint committee aims to bring the figure down to the 10% target by the first or second quarter of 2026.