Petaling Jaya, 13 March 2026 – More than 2,200 company directors were barred from leaving Malaysia in 2025 for failing to remit employees’ contributions to the Employees Provident Fund (EPF), according to the retirement fund body.
The EPF said the travel restrictions were imposed under Section 39 of the EPF Act 1991, which allows authorities to prevent company directors from leaving the country if their companies fail to fulfil statutory obligations related to employee retirement contributions.
Thousands of Directors Affected by Enforcement Measures
EPF revealed that 14,332 company directors had been placed under travel restrictions as of December 2025 due to unpaid contributions owed to employees.
The action is part of the fund’s broader enforcement efforts to ensure employers comply with legal requirements to make monthly EPF payments on behalf of their workers.
The EPF stressed that timely contributions are a legal obligation and a critical safeguard for employees’ retirement savings.
Serious Offence Under Malaysian Law
Failure to pay EPF contributions is considered a serious offence under Malaysian law. Authorities can pursue both civil and criminal actions against defaulting employers and company directors.
Legal measures may include:
• Travel restrictions through immigration authorities
• Civil suits against company directors
• Criminal prosecution for employers who fail to remit contributions
These enforcement steps are intended to protect employees’ retirement savings and ensure companies fulfil their statutory obligations.
Protecting Workers’ Retirement Security
The EPF also encourages employees to regularly check their accounts via the KWSP i-Akaun platform to verify that their employers are making the required monthly contributions.
Members who discover discrepancies are advised to contact their employers or report the issue directly to EPF for investigation.
The latest figures highlight the government’s continued efforts to strengthen enforcement against non-compliant employers and protect the retirement security of Malaysian workers.
