The Labuan Financial Services Authority (Labuan FSA) confirms that the salary threshold prescribed for expatriate work permits in the Labuan International Business and Financial Centre (Labuan IBFC) remains valid under Malaysia's revised expatriate employment policy, which takes effect on 1 June 2026. In a circular issued on 11 June 2026, Labuan FSA sets out clarification obtained from the Ministry of Home Affairs on how the revised Employment Pass framework applies to Labuan entities under the Guidelines on Work Permit Application in Labuan IBFC for Licensed and Non-Licensed Entities. The revised policy raises the minimum salary for Employment Pass Category I expatriates to RM20,000 and above, up from RM10,000. The Category II band moves to between RM10,000 and RM19,999, while Category III rises to between RM5,000 and RM9,999, except in the manufacturing sector and manufacturing-related services, where it is set at between RM7,000 and RM9,999. The framework sets the employment period for Category I at 10 years, and for Category II at 10 years with a replacement plan. Category III is set at five years with a replacement plan. Expatriates holding any of the three categories are permitted to bring dependants. Labuan FSA states that the RM10,000 salary threshold prescribed for Labuan IBFC sits within the salary range stipulated under the new policy and continues to qualify for an Employment Pass, meaning the existing requirement is unchanged for Labuan entities. The circular was addressed to the Association of Labuan Trust Companies, the Association of Labuan Banks, the Labuan International Insurance Association and the Labuan Investment Banks Association. Labuan FSA says it will continue to engage with the relevant authorities to maintain a supportive regulatory environment for the Labuan IBFC industry.
