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Do I Need an Employment Permit in Malaysia?

If you hope to establish a Malaysia company, you’ll need to take steps to understand every aspect of the business community including how to hire employees in this area. An employment permit in Malaysia is one of those important tools. It is important for business owners who are incorporating their organization here to understand the rules and processes to ensure that it goes well. The good news is that the country does not make it too hard to actually establish a business here nor to run it with well qualified employees.

 

What Is an Employment Permit in Malaysia?

For those who are hiring non-resident employees who will work in Malaysia, it is important for the business to ensure that they have a valid work pass. This is also known as a work visa. There are many requirements for employees working in the country, but these are organized by the type of work they will do.

The employment permit includes a 2-year work permit with a minimum monthly salary of RM 5000. In addition, for individuals applying for a Skill/Specialist/ Technical Position, a minimum Bachelor Degree is required. Furthermore, the endorsement process takes 1 to 2 months. Upon successful evaluation, the employee and their family are both awarded a 2-year work permit.

 

What If You Are Just Registering in the Country?

For business owners who are registering their company in Malaysia but will not have an actual physical location in the country, there are no requirements for employment passes. You can set up a 100% Foreign Owned Company in Malaysia and operate its products or services from any other destination in the world. This can provide you, as a business owner, with the benefits of making the move to the country but also allows you to access all of the employment you need locally.

 

Are You In Need of Employees?

No matter where you plan to do business, employees are a factor. If you plan to bring employees in from international countries to work for your company that’s registered in Malaysia, you’ll need to select the right type of Employment Permit based on the skills and earning power of the individual. You’ll also need to work to ensure these work permits and visas remain in place long enough for the individual’s needs or for long term needs.

 

It can seem confusing to move your business to a new country and then to have to manage the details of how to run it, such as handling employment laws in Malaysia. However, there are companies that can help you with this process. You’ll want to work hand-in-hand with these companies to ensure every aspect of your move is an easy one. It takes a bit of time and patients to learn the new rules, but it can be very worthwhile.

Posted on April 8, 2015 at 2:53 am
Categories: EP - Employment Pass in Malaysia
1 comment

[…] of Manpower. All foreigners who wish to start a new business in Malaysia must apply for an Employment Permit, which allows registered entrepreneurs and their families to live in Malaysia. Business executives […]

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