Malaysia implements new talent and digital infrastructure strategies

Malaysia is implementing new strategic initiatives to bolster its investment landscape through enhanced talent mobility and digital infrastructure development.

Effective June 1, 2026, the Ministry of Home Affairs will implement a revised Employment Pass (EP) salary policy. The framework introduces three categories: Category I for executive leadership with salaries of RM20,000 and above; Category II for salaries between RM10,000 and RM19,999, which requires a mandatory localisation plan; and Category III for salaries between RM5,000 and RM9,999, with specific requirements for the manufacturing sector. These measures aim to ensure expatriate expertise complements rather than replaces the local workforce by facilitating knowledge transfer.

Simultaneously, Malaysia is positioning itself as a Southeast Asian hub for digital infrastructure. To address the growing demand for AI-driven services, the Malaysian Investment Development Authority (MIDA) will host the Data Centre Nexus (DCN) 2026 on September 14, 2026. The event will focus on advancing AI-driven digital infrastructure and sustainable ecosystems, targeting investments in advanced computing such as AI factories and GPU-as-a-Service while emphasizing environmental stewardship regarding energy and water usage.