Malaysia Employer FAQ

Find out the answer to frequently asked questions from employers regarding EOR in Malaysia.

Is it permissible to dismiss Malaysian employees and recruit a replacement from a different country?

According to Section 60M of the Malaysia Employment Act 1955, it is prohibited for an employer to terminate a local employee and replace them with a foreign employee. Engaging in such an action is considered an offense and may result in a penalty of up to RM 50,000. The Malaysian government aims to safeguard the interests of its local workforce and prioritize the employment of Malaysian citizens.