PETALING JAYA: The Home Ministry’s announcement of the special period to receive applications for the employment quota of foreign workers for the year 2025 is an acknowledgement that the available quota application periods were too short, say stakeholders.
The ministry had earlier announced that it would open a special period to receive applications for the employment quota of foreign workers for 2025 starting from Jan 19 to March 31, 2026.
The earlier deadline for quota applications was Dec 31, 2025.
Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said industries were under pressure to secure needed manpower through existing mechanisms.
He added that indirect indicators pointed to significant unmet demand in agriculture, plantation, construction, manufacturing and services sectors.
“Application details still lack transparency on quotas, priorities and processing timelines. Structural reforms, better data and stakeholder engagement remain essential,” he said in response to the announcement.
He also said industry feedback and queues seen outside the Home Ministry before application deadlines, signalled a significant demand for foreign labour that could not be met, well beyond existing quota levels.
SME Association of Malaysia president Dr Chin Chee Seong believed the current national shortfall ranged between 100,000 and 150,000 foreign workers.
“The Home Ministry’s decision to introduce a special application window from Jan 19 to March 31, 2026 across all sectors is itself an acknowledgement that existing labour supply does not adequately meet industry demand, despite earlier quota allocations and extensions.
“Primary data from a targeted sample of SME operators revealed a localised demand of around 2,000 people, suggesting that the broader national shortfall is likely at the upper end of the 150,000 estimate when extrapolated across the country’s 1.1 million registered SMEs.”
Chin said new regulatory pressures have created systemic constraints and SMEs are concerned that labour shortages are no longer a temporary issue due to new policies starting in 2026.
These included lower foreign worker cap, pay-more-to-hire-more system with the introduction of the Multi-Tiered Levy Mechanism (MTLM).
Higher employment costs especially since Oct 2025, where employers must contribute 2% to the Employees Provident Fund (EPF) for foreign workers and other policies, including worker housing, have added to existing costs, he said.
Chin also said automation required high upfront investment and cannot be implemented overnight.
Malaysian Indian Restaurant Owners’ Association (Primas) president Datuk Govindasamy Jayabalan said the restaurant sector urgently needed workers, particularly kitchen assistants, cooks, cleaners and service staff.
He added that the Indian restaurant sector alone required an estimated 8,000 foreign workers.
“Many outlets are understaffed, which affects operating hours, service quality and long-term business sustainability. The opening of the quota application window indicates that existing manpower gaps have yet to be adequately addressed.
“Key challenges faced by restaurant operators include delays in quota approvals, limited quota allocations, frequent policy changes and uncertainty in workforce planning.
“Many operators continue to face difficulties in replacing workers whose contracts have ended and have returned to their home countries although customer demand remains strong,” he said.
On the ministry’s announcement of the special period, Govindasamy said clear and simplified procedures should be provided for submission of applications.
According to the Home Ministry statement, the special period involved applications for all sectors and sub-sectors that have been approved by the government on Oct 1, 2025, as well as complying with the stipu- lated eligibility criteria, inclu- ding applications for the employment of foreign workers for the service sector under the supervision of the Domestic Trade and Cost of Living Ministry that were previously closed earlier.
The statement said appointments must be made in advance through the appointment system that can be accessed via the Home Ministry’s official website starting Jan 16, 2026.
