Australia is abolishing the Temporary Work (Skilled) visa (subclass 457 visa), a decision that could potentially affect many Malaysians.

A total 1,320 Malaysians are among the 95,000 people currently on a 457 visa, The Guardian reported.

Malaysia is among the top 15 countries with citizens that were granted with the document in 2015-2016.

"Australia is the most successful multicultural nation in the world - we are an immigration nation.

"But the fact remains, Australian workers must have priority for Australian jobs.

"We will no longer allow 457 visas to be passports to jobs that could and should go to Australians," announced Australian Prime Minister Malcolm Turnbull in a video on his official Facebook page today.

Current 457 visa-holders will not be affected, The Guardian reported.

Large Malaysian diaspora

Malaysians make up the ninth largest migrant demographic in Australia, according to a survey on the Australian Immigration Visas website.

New South Wales, Victoria and Western Australia were top three Australian states Malaysians chose to work in.

Previously, the 457 visa allowed skilled workers to travel to Australia to work in a nominated occupation for their approved sponsor for up to four years.

It will be replaced with the Temporary Skill Shortage (TSS) visa which will "support businesses in addressing genuine skill shortages", according to the Department of Immigration and Border Protection website.

The TSS visa will include new requirements such as "previous work experience, better English language proficiency and labour market testing", said Turnbull.

More than 200 jobs will be removed from the current list of eligible occupations, The Guardian reported.

The new visa system will also not pave a pathway to permanent residency, Australian Immigration and Border Protection minister Peter Dutton was quoted as saying.