Howden Whitepaper 2026
Over 14,000 company directors barred from leaving Malaysia over unpaid EPF contributions

Over 14,000 company directors barred from leaving Malaysia over unpaid EPF contributions

In 2025 itself, the EPF resolved 8,868 cases of contribution arrears out of 21,029 employee complaints received, while 12,161 cases are still under investigation and legal action.

More than 14,000 company directors in Malaysia have been barred from leaving the country after failing to remit their employees’ Employees Provident Fund (EPF) contributions. 

In particular, as of December 2025, 14,332 directors have been placed under travel restrictions, following the submission of 2,257 new names to the Immigration Department between January and December 2025, under Section 39 of the EPF Act 1991.

The scale of enforcement extends beyond travel bans. In 2025 alone, the EPF filed 3,530 civil suits and 6,011 criminal actions against company directors and employers who failed to pay their employees’ EPF contributions.

EPF Chief Operating Officer Sazaliza Zainuddin emphasised that timely contributions are critical, not just as a statutory requirement, but as a safeguard for employees’ long-term financial security.

"Employers who fail to fulfil their statutory obligation to pay EPF contributions may result in enforcement action, including civil proceedings, criminal prosecution, and restrictions on leaving the country," he stressed.

At the same time, enforcement activity is being driven by employee complaints. Of the 21,029 complaints received in 2025, the EPF has resolved 8,868 cases of contribution arrears, while 12,161 cases remain under investigation or legal action.

The EPF has highlighted that each complaint received "is investigated and appropriate action will be taken to ensure members’ rights as employees are always protected."

"EPF will continue to intensify its enforcement efforts to ensure employers meet their statutory obligations. Employers who fail to do so should expect firm action, as protecting members’ retirement savings remains our priority,” Sazaliza added.

The EPF urged members to regularly check their EPF accounts through the KWSP i-Akaun application to ensure that their employers’ contributions are credited on time and in the correct amount. Should any discrepancies surface, members are advised to immediately contact their employers for verification. Members may also contact or visit any EPF office to lodge a complaint should their employer fail to make the required contributions, together with supporting documents such as employment offer letters, payslips, or other relevant records.

Employers can leverage the i-Akaun (Employer) platform to review employee contribution records and track payment history. If there are any issues regarding contribution arrears, the EPF has called on them to contact or visit any EPF office to resolve them.

For more EPF-related stories, click here.

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