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January 12, 2023

Malaysia announces new requirements for employers when hiring or terminating foreign nationals

Effective January 1, 2023, Malaysian employers must obtain approval from the Director General (DG) of the Ministry of Human Resources prior to hiring foreign nationals. Further, they must notify the DG upon termination of foreign nationals' employment. Employers may account for the new requirements and modify their workforce planning accordingly to avoid potential delays in the hiring of foreign nationals and mitigate business disruptions. They may submit the approval letter obtained from the DG's office to the immigration authorities when applying for an expatriate projection for hiring foreign nationals.

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.


Full text of Tax Alert