Malaysia’s foreign worker framework is undergoing policy adjustments under the 13th Malaysia Plan (13MP), which covers the period 2026–2030. The current sectoral ceiling of 15% will remain in place until 31 December 2025. Under the 13MP, a new ceiling of 10% has been stipulated, with the revised limit expected to be finalised in the first or second quarter of 2026.
Recent announcements have also clarified sector eligibility for quota applications. Applications are open for agriculture, plantation, and mining sectors across all subsectors. In the services sector, selected subsectors such as wholesale and retail, security, restaurants, laundry, cargo, and building cleaning are permitted. For construction, recruitment is limited to government project subsectors, while manufacturing approvals focus on new investments under the Malaysian Investment Development Authority (MIDA).
These updates underscore the importance of staying aligned with prevailing sector requirements and regulatory timelines.
What’s Changing With Malaysia’s Foreign Worker Quota?
A special window for 2025 foreign worker employment quota applications has been announced, running from 19 January to 31 March 2026. By the second quarter of 2026, the government will finalise a new ceiling. By 2030, the government will reduce the foreign worker ceiling to 10%.
Businesses have limited time remaining to assess and address their manpower needs before the new ceiling rate kicks in under the 13MP. In the next section, we’ll show how businesses can brace for disruption.
4 Ways Businesses Can Prepare for the Change
To stay competitive and compliant amid disruptive policies, companies should adopt a proactive approach. Here’s what they can do:
- Labour Planning and Forecasting
Start by reviewing your current workforce and upcoming manpower needs. Consider things like upcoming contracts, seasonal demand, and turnover when performing your review. - Workforce Replacement Strategy
Reduce your dependence on foreign workers. Businesses may do this by hiring more local workers, upskilling them, investing in automation, or even changing job structures. These are all a part of a long term plan to meet your business goals and maintain a competitive position. - Immigration and Compliance Readiness
Prepare and ensure all documentation, including permits, contracts, and renewals, meets the latest immigration and labour requirements. Non-compliance can lead to rejected applications and staffing delays, which affects your operations. - Diversify Labour Sources
Avoid over-reliance on a single source country, or even on foreign labour in general. This is to ensure flexibility and continuity even if one or some markets face policy or logistical constraints.
Despite the challenges, businesses aren’t alone. Partnering with a workforce solution agency like Manforce Group can help businesses maintain their competitive position despite the changes.
Manforce Group Helps Employers Navigate Malaysia’s Foreign Worker Quota
Manforce Group, Malaysia’s first publicly listed workforce solutions provider, offers complete support to help employers navigate this critical transition period. The team stays ahead of every policy update and quota announcement, helping businesses forecast, plan, and act before changes take effect.
Before making any application, Manforce Group checks eligibility based on whether a company falls under an approved sector, a MIDA-recognised investment, or a government project.
Then, it manages quota applications, permits to VDR, work passes, documentation and more. Manforce Group ensures full compliance with immigration and labour standards while helping businesses stay flexible, diversify manpower sources, and maintain continuity in an increasingly difficult labour environment.
Conclusion
Time is running out for employers to secure their manpower pipeline. Businesses that act today will be better positioned to maintain stability. Get ahead of the quota changes. For more information, contact Manforce Group Berhad today.
