The Ministry of International Trade and Industry (MITl) has issued a circulation letter regarding Deferment of Compliance with 80:20 Employment Condition in Manufacturing License – circulation letter as follows:

The Ministry of International Trade and Industry (MITl) has recognized the crucial need for the manufacturing industry to follow up on the moratorium of foreign workers employment for two (2) years due to the COVID-19 pandemic and the issue of labor shortage raised by the industry.

As previously informed, one of the conditions stipulated in the Manufacturing License issued by MITI since 2016 is the condition of full-time employment of at least 80% Malaysians (80:20) which must be complied with no later than 31 December 2022. Meanwhile, the employment of foreigners including workers obtained through outsourcing is subject to current policies.

Based on the current development situation, despite the numerous of initiatives implemented, the manufacturing sector is still facing the same issue of obtaining local workforce which affects the continuity and competitiveness among the businesses. Accordingly, the Malaysian government has decided that compliance with the conditions of full-time employment in the Manufacturing License issued by MITI will be suspended until 31 December 2024.

To read the full translated Ministry of International Trade and Industry (MITI) circulation letter, please refer here:

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