The Malaysian International Chamber of Commerce and Industry (Micci) said a case-by-case approach would help businesses manage workforce transitions while ensuring effective knowledge transfer to local talent.

“Developing Malaysian talent is a priority we fully support, and many companies are already investing in strong local pipelines.

“However, for roles requiring specialised expertise or regional experience, localisation takes time and cannot always align with fixed policy timelines,” Micci president Christina Tee said in a statement.

The new policy, aimed at helping companies prepare locals to eventually take over expatriate-held roles, will set fixed validity periods of five to 10 years for expatriate passes, higher salary thresholds and succession planning requirements.

Tee said policy implementation should also reflect sector‑specific realities, noting that succession planning timelines vary depending on complexity, especially for specialised or leadership positions.

She added that clear and predictable processes, including defined timelines and streamlined approvals, are critical as the policy will apply to both new and renewal applications from June 1.

In January, the home ministry said it would engage with stakeholders ahead of June 1, including industry players, employers’ groups and relevant agencies, to explain the policy’s mechanisms and implications.