Malaysia’s foreign worker quota policy has changed several times in recent years. In October 2025, the government announced that selected foreign worker quota applications could be considered on a case-by-case basis until 31 December 2025. A special appointment period was subsequently provided from 19 January to 31 March 2026 for certain applications connected to that 2025 exercise.

That temporary arrangement should not be treated as a standing approval window in 2026. Employers planning to recruit foreign workers must check the current sector policy, quota status and application channel before making commitments to workers or recruitment agents.

Why Were Case-by-Case Approvals Introduced?

Malaysia has maintained controls on new foreign worker quotas while allowing exceptions for urgent industry needs. Under the case-by-case approach, an application is assessed according to the employer’s actual workforce requirements, regulatory compliance and the conditions set for the relevant sector or subsector.

This means an employer is not automatically entitled to a quota simply because its business operates in a sector that is generally permitted to employ foreign workers. Approval can depend on current government policy, the responsible regulatory agency’s requirements and decisions made through the relevant Home Ministry and Human Resources Ministry process.

The Most Important Distinction: Section 60K Is Not a Quota Approval

Employers often confuse two separate stages:

1. Prior approval under Section 60K of the Employment Act 1955 — obtained from the Department of Labour Peninsular Malaysia (JTKSM) before employing a new non-citizen worker.
2. Foreign worker quota approval — considered through the government’s foreign worker management and One Stop Centre process, subject to the policy applying to the employer’s sector.

Receiving Section 60K approval does not by itself guarantee that a foreign worker quota, Visa With Reference or Visit Pass (Temporary Employment) will be approved. Each required stage must be completed successfully.

Section 60K applies to new recruitment and is not generally required merely to renew an existing Employment Pass, Visit Pass (Temporary Employment) or other employment-related pass. An employer that recruits a new foreign worker without the required prior approval may face a fine of up to RM100,000, imprisonment of up to five years, or both.

Which Sectors May Employ Foreign Workers?

Official guidance identifies the principal permitted sectors as:

• Manufacturing
• Construction
• Agriculture
• Plantation
• Services
• Mining and quarrying

However, access may be restricted to particular subsectors, occupations or application mechanisms. A sector appearing on the general permitted list does not necessarily mean that new quotas are continuously open.

As of October 2026, official guidance shows that Section 60K applications and foreign worker processes are available through systems such as FWCMS and ePPAx, while quota decisions remain subject to Cabinet policy and Home Ministry controls. Employers should therefore confirm the live status for their exact sector and subsector before submitting an application.

Basic Compliance Conditions for Employers

According to current JTKSM guidance, employers may be required to demonstrate that they:

• Advertised the vacancy through MYFutureJobs where applicable.
• Pay existing foreign workers through a bank account and comply with the prevailing minimum-wage requirements.
• Provide suitable worker accommodation and comply with applicable accommodation laws.
• Comply with labour laws for both local and foreign workers.
• Register eligible foreign workers and make the required PERKESO contributions.
• Have not been convicted of forced-labour offences.
• Meet the minimum conditions imposed by the relevant sector regulatory agency.

JTKSM may verify the existence of the business premises, labour-law compliance, worker accommodation and the employer’s eligibility before issuing its decision.

What Happens After Approval?

Depending on the approved recruitment route, the employer may need to complete quota processing, regulatory interviews, levy payment, immigration approval and a Visa With Reference before the worker travels to Malaysia.

After arrival, the worker must enter through an authorised entry point and undergo the required FOMEMA medical examination within the prescribed period. The Visit Pass (Temporary Employment) is issued only after the worker is certified medically fit and all immigration requirements are met.

Employers also have continuing reporting responsibilities. Current labour guidance requires the employer to report the employment of a foreign worker to JTKSM within 14 days and to report termination within the required period, generally 30 days. Employers must also manage permit renewals, insurance, accommodation, payroll and repatriation properly.

What Employers Should Do Before Applying

Before beginning recruitment, employers should:

1. Confirm whether applications are open for the exact sector, subsector and occupation.
2. Check which system and regulatory agency apply to the application.
3. Prepare employment, payroll, accommodation and company-compliance records.
4. Obtain Section 60K prior approval where required.
5. Avoid paying recruitment costs or promising arrival dates before the quota and immigration route are confirmed.
6. Use only properly licensed and authorised recruitment channels.

Plan Early and Verify Every Stage

The 2025 case-by-case exercise provided limited relief to industries facing urgent labour shortages, but it was a time-bound arrangement rather than a permanent open quota. In 2026, employers should rely on current government notices—not older headlines—when planning their workforce.

Bold Excel Services Sdn Bhd has more than 20 years of experience supporting employers with foreign worker recruitment and management. Our team can assist with eligibility checks, documentation, recruitment coordination, permit matters and ongoing worker management.

Contact us to review your company’s requirements before starting the application process.