Increased Enforcement Against Employers
More than 2,200 company directors were barred from leaving Malaysia in 2025 after failing to pay Employees Provident Fund (EPF) contributions for their workers, highlighting the government’s tougher stance on employer compliance.
According to the EPF, a total of 2,257 directors were placed on the travel restriction list between January and December 2025 under Section 39 of the EPF Act 1991. This raised the total number of directors banned from travelling abroad for unpaid EPF contributions to 14,332 as of December 2025.
Legal Action Taken by EPF
The EPF said the restrictions were imposed on employers who failed to remit mandatory employee contributions. Under Malaysian law, employers are required to make EPF contributions on behalf of their employees, and failing to do so can result in civil suits, criminal prosecution, and travel bans.
In addition to the travel restrictions, the EPF filed 3,530 civil suits and carried out 6,011 criminal actions against company directors and employers during 2025 for unpaid contributions.
Thousands of Cases Still Pending
The EPF also revealed that it resolved 8,868 cases involving contribution arrears from over 21,000 employee complaints. However, more than 12,000 cases are still under investigation or awaiting legal action.
This shows that unpaid EPF contributions remain a serious issue affecting many workers and businesses across the country.
Protecting Workers’ Retirement Savings
EPF officials stressed that timely contribution payments are important because they help protect workers’ retirement savings and financial security.
Employees were also encouraged to regularly check their accounts through the i-Akaun platform to ensure contributions are being credited correctly and on time.
Stronger Compliance Measures Expected
The latest enforcement action reflects the government’s increasing efforts to ensure employers meet their obligations. Authorities are expected to continue taking stricter action against companies that fail to pay EPF contributions, as the issue continues to affect thousands of employees across Malaysia.