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What are the upcoming changes to the foreign workforce policies for the process sector from 1 Jan 2024?

The following changes will be implemented in the process sector from 1 Jan 2024:

  • The Dependency Ratio Ceiling (DRC) will be reduced from 1:7 (87.5%) to 1:5 (83.3%).
  • The Man-Year Entitlement (MYE) framework will be dismantled.
  • Levy rates for Work Permit holders will be revised as follows: 
Source country or region / Tier  Monthly  Daily 
NTS - Higher-skilled $300 $9.87
NTS - Basic-skilled $650  $21.37
Malaysia, NAS, PRC - Higher-skilled $200  $6.58 
Malaysia, NAS, PRC - Basic-skilled $450 $14.80

The MYE framework will be dismantled from 1 Jan 2024 onwards. This includes the phasing out of Prior Approval (PA) and In-Principle Support (IPS). From 1 Jan 2024, firms will no longer need to apply for MYE, IPS or PA before applying for a Work Permit for NTS or PRC workers. The revised steps for a Work Permit application will be updated closer to 2024. Find out more.