Samenta Urges Review of RM10,000 Employment Pass Floor as SMEs Warn of Talent Squeeze
Updated
Updated · Malay Mail · Jul 15
Samenta Urges Review of RM10,000 Employment Pass Floor as SMEs Warn of Talent Squeeze
2 articles · Updated · Malay Mail · Jul 15
Summary
Malaysia’s SME association asked the government to suspend and review Employment Pass rules that took effect on June 1, saying the changes could block smaller firms from hiring specialist foreign workers.
The new policy doubled the Category I minimum monthly salary to RM10,000 from RM5,000 and raised Category II to RM20,000 from RM10,000, while capping pass tenures at 10 years for Categories I and II.
Samenta said SMEs already struggle to secure software developers, data engineers, robotics technicians and cybersecurity specialists because local talent is scarce and often absorbed by multinationals and larger domestic firms.
The group proposed exempting existing pass holders, setting lower thresholds for SMEs with verified transformation plans, and tying salary rules to TalentCorp’s Critical Occupations List rather than uniform industry-wide levels.
It warned the rules could slow SME upgrading beyond low-value activities and make Malaysia less attractive to foreign investors and regional headquarters competing globally for skilled workers.