Expanding your business to Malaysia or hiring foreign talent? Understanding Malaysian work visas is essential for companies that want to legally hire expatriates and ensure a smooth relocation process. Whether you're setting up a new office or bringing in skilled professionals, securing the right visa is a critical step in corporate relocation.
This guide is designed for businesses and covers the types of work visas available, the application process, and key compliance factors that companies must consider when hiring foreign employees in Malaysia.
Step 1: Understanding Work Visa Options in Malaysia
Malaysia offers several types of employment-related visas, each catering to different business needs:
- Employment Pass (EP) – The primary work visa for highly skilled foreign professionals.
- Temporary Employment Pass (TEP) – For lower-skilled foreign workers in specific sectors like construction or manufacturing.
- Professional Visit Pass (PVP) – For short-term assignments where the employee remains on a foreign company’s payroll.
For most corporate relocations and business expansions, the Employment Pass (EP) is the most relevant visa, as it allows companies to hire foreign professionals for executive, managerial, or specialized technical roles.
Step 2: Employment Pass Categories & Eligibility
The Employment Pass (EP) is categorized into three tiers based on salary and job role:
Category I – Senior Executives & Specialists
✅ Who is it for? C-suite executives, senior managers, and highly skilled specialists.
✅ Minimum Salary: RM10,000 per month.
✅ Contract Duration: Minimum 2 years, renewable up to 5 years.
✅ Key Benefits: Eligible for Dependent Passes (for spouses and children) and Long-Term Social Visit Passes (for parents).
Category II – Mid-Level Professionals
✅ Who is it for? Middle management professionals and technical specialists.
✅ Minimum Salary: RM5,000 – RM9,999 per month.
✅ Contract Duration: 1 – 2 years, renewable.
✅ Key Benefits: Also eligible for Dependent Passes.
Category III – Entry-Level & Short-Term Hires
✅ Who is it for? Entry-level professionals or specialized technical workers.
✅ Minimum Salary: RM3,000 – RM4,999 per month.
✅ Contract Duration: Maximum of 12 months, renewable up to twice.
❌ Dependent Pass NOT available for this category.
Most corporate relocation cases fall under Category I & II, as companies typically hire skilled professionals and executives when setting up operations in Malaysia.
Step 3: Business Eligibility for Hiring Foreign Employees
Before applying for an Employment Pass, companies must ensure they meet certain eligibility criteria to hire expatriates legally.
Company Requirements:
- Registered Malaysian entity – Your business must be registered with Suruhanjaya Syarikat Malaysia (SSM) (Companies Commission of Malaysia).
- Sufficient Paid-Up Capital – The required capital amount varies by industry (e.g., RM500,000 for service-based companies with 100% foreign ownership).
- Expatriate Quota Approval – Companies must obtain approval from the Expatriate Services Division (ESD) or other relevant authorities.
- Job Posting Requirement – For certain positions, employers must advertise on Malaysia’s official job portal (MyFutureJobs) for at least 30 days to give locals a fair opportunity before hiring a foreign worker.
Not all businesses automatically qualify to hire foreign employees. Ensuring compliance before submitting an application helps prevent rejections and delays.
Step 4: The Employment Pass Application Process
Once the company meets the eligibility criteria, the Employment Pass application can proceed. Here’s a step-by-step breakdown of the process:
1. Submit Expatriate Quota Request
📌 Where? Expatriate Services Division (ESD) online portal.
📌 What’s needed? Business registration details, financial records, and justification for hiring an expatriate.
Once approved, the company can proceed with the individual Employment Pass application.
2. Gather Required Documents
The employer must submit the following:
Employee’s Passport Copy (valid for at least 12 months).
Employment Contract (signed by both parties).
Educational Certificates (with official translations if necessary).
Company’s Business Registration Documents.
Recent Passport-Sized Photos of the applicant.
3. Submit the EP Application
📌 Where? ESD online portal or through sector-specific approval agencies (e.g., MDEC for tech-related visas).
📌 Processing Time? Typically 4 – 8 weeks, depending on the case.
4. Receive Approval & Visa with Reference (VDR)
If approved, the Approval Letter is issued. The employee must obtain a Visa with Reference (VDR) from a Malaysian embassy or consulate before entering the country.
5. Arrival & Endorsement of the Employment Pass
Upon arrival in Malaysia, the employee:
- Undergoes a medical screening (if required).
- Submits their passport for final EP endorsement at the Immigration Department.
- Receives their Employment Pass Card, officially allowing them to work in Malaysia.
Step 5: Compliance & Renewal of Work Visas
Once the Employment Pass is issued, ongoing compliance is essential to avoid legal issues.
Key Compliance Factors for Employers:
- Visa Renewals: Renewal should start at least 3 months before expiry.
- Tax Registration: Expatriates must register with the Malaysian tax authority (LHDN).
- Pass Cancellations: If an employee resigns or is terminated, the employer must cancel the Employment Pass and arrange for an exit visa.
- Company Changes: If the employee switches employers, they must obtain a new EP under the new company’s sponsorship.
Step 6: Additional Visa Options for Businesses
In addition to the Employment Pass, companies may need to apply for other visas related to their foreign workforce:
Dependant Pass (DP)
- For spouses and children of Employment Pass holders (Category I & II).
- Allows family members to stay in Malaysia but not to work (unless they obtain a separate work visa).
Professional Visit Pass (PVP)
- For short-term foreign professionals (e.g., consultants, trainers, technical advisors) who remain on a foreign company’s payroll.
- Valid for up to 12 months, non-renewable.
Malaysia My Second Home (MM2H) Visa
- A long-term residency program allowing foreigners (including business owners) to live in Malaysia.
- Popular among expatriate entrepreneurs who want flexibility without employment restrictions.
Conclusion
Hiring foreign talent in Malaysia can be highly beneficial for companies looking to expand, but navigating visa regulations requires careful planning and compliance. Ensuring your company meets the right eligibility criteria, applying for the correct Employment Pass category, and staying updated on visa renewals will help make the process smooth and efficient.
While the visa process can be managed in-house, partnering with experienced immigration specialists can save time, reduce errors, and ensure a seamless transition for foreign employees. Ensuring full compliance with Malaysian work visa regulations protects both employers and employees from legal risks and enhances business stability in the long run.
Need expert guidance on work visas for your company? Having the right support can streamline your corporate relocation process and ensure compliance with Malaysia’s immigration laws. Consider working with professionals to navigate the complexities of hiring expatriates in Malaysia.