Applying to New Zealand from Malaysia? Why visa costs could rise again

News · 2026-09-04 · 3 min read

If you are planning to work in New Zealand from Malaysia, your budget should include one thing that is easy to miss: what the visa system itself costs to run. Immigration New Zealand (INZ) is sitting on a $90 million shortfall in its visa accounts this year, and a new fee review is scheduled before the end of 2026, barely two years after the last one.

Where the gap comes from

The shortfall traces back to two sources. The first is the ongoing cost of Our Future Services, an $336 million automation overhaul that is still in its early years. The second is what is left of the Biometric Capability Update (BCU), a system meant to modernise how INZ handles biometric data. It ran for seven years, from 2018 to late 2025, and was scrapped without producing anything usable.

Why the BCU bill keeps growing

Cost	What it covers
$31.2 million	The write-off booked in the 2026 Budget
$6 million	Extra costs disclosed in July 2026, with no promise that this was the full picture
Near $40 million	Total known losses by early September 2026
Up to $12 million	What INZ could owe the project contractor, on top of the contractor's own claimed losses of at least $4 million

The contractor could also face penalty charges of up to $750,000 per month for a missed 2025 delivery deadline, and an inquiry is underway.

What went wrong, and the replacement

An independent review found the project started in 2018 without proper analysis, skipped due diligence during a 2020 rescope and set up governance too late to matter. The replacement, Our Future Services, is an eight-year programme and is already showing cracks. A review found its business case overstated savings, which relied on cutting 118 full-time roles. The promised 30% productivity gain has not appeared: student visa processing is running only 7–20% above baseline. The whole programme has been rated "high risk."

Why you may end up paying

After the 2024 fee and levy overhaul, INZ is funded almost entirely by the people who use it. In 2024/25 the revenue mix was roughly 50% fees, 40% levies and just 9% from general taxation, so about 91 cents of every dollar INZ spends comes from migrants and the employers sponsoring them. Skilled residence visa fees jumped from $4,290 to $6,450, and student visa fees doubled to $750.

The ministry has said that returning the visa account to surplus will need both spending cuts and "revenue recovery measures." In plain terms, that points to higher charges for the people who had nothing to do with the failed project.

Practical steps for Malaysian applicants

Do not rely on old fee figures. Check the current amounts on the official New Zealand visa pages before you budget.
Build a buffer into your plan, because fees may change after the review.
Get your documents ready early: certified copies, English translations of anything in Bahasa Malaysia where the visa rules ask, a police clearance from the Royal Malaysia Police (PDRM) if requested, and an IELTS or PTE result if the visa or employer needs one.

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