How To Hire Foreigners In Malaysia

Malaysia allows expatriates from various countries to work and live here. From general workers to highly skilled professionals, companies here may employ foreigners to fulfil the positions required but is subjected to certain requirements with accordance to the Malaysia’s immigration law.

Besides our neighbouring country, Singapore, Malaysia is also seen as a hot spot for job seekers from all around the globe as the country’s economy is growing steadily and is seen as a viable destination to work and live.

Given the multitude of local and foreign owned companies here, there are abundance of employment opportunities in Malaysia which are not only limited to locals, but also for talented and skillful foreigners as well. These job opportunities are prevalent in major urban areas as there are increased demand for highly skilled individuals to fill up the various position in many industries.

The sponsor, employing Company are expected to abide by the rules and regulation posed by the government in order to employ foreign employees. They are to comply with the Malaysian laws to attain the proper work visas and permits before they work here.

There are several terms and conditions highlighted by the Ministry of Home Affairs – Immigration Department of Malaysia for employers to abide with:

The Ministry of Home Affairs has issued three (3) types of work permits available for employers to apply for their foreign workers:

In order for the potential foreign workers to start working in Malaysia, their application will be strictly reviewed by the relevant government agencies. The employer is also expected to abide by the rules and regulations imposed by the government by hiring these foreign workers.

The Employment Pass is normally for foreign workers who are offered a contract with a Malaysian registered Company. It is for foreign expatriates with specific skills commonly used for the technical and managerial positions.

Within the employment pass program, there are three (3) categories:

Temporary Employment Pass, also known as the Visitor Pass, is normally for Malaysian registered Companies who are in need of semi-skilled foreign workers in specific sectors. Its validity is up to 12 months (1 years) and the employers can apply for an extension on a yearly basis for up to 10 years.

There are two types of such passes, and they are only applicable to selected industries:

This pass is only eligible for those foreign expatriates with necessary qualifications and skills to work in Malaysia on a temporary basis of 12 months (1 years). They are to provide their services in a Malaysian registered Company on behalf of an overseas Company and is not allowed to apply for dependant’s pass.

Malaysia does not practise the issuance of business visas which is common in countries like Singapore, where businessmen can travel back and forth a country without obtaining visas from their home country.

The candidate eligible for this type of pass:

The one responsible to apply for this pass is the employing Company. They are responsible to do so on behalf of the foreign candidate they wish to hire.

The candidate eligible for this type of pass:

Once all the eligibility is checked, then the employing Company may proceed to put in the application:

• Must apply visa approval letter from Immigration Department of Malaysia
• Must submit VDR application form (using the e-service in Immigration Department official website)
• Letter of quota approval from Ministry of Home Affairs
• 12 and IM.38 visa application form (can be found in the official website as well)
• Receipt of payment for levy
• Security bond – insurance guarantees/bank guarantee
• Passport copy (preferably certified by notary republic)
• Passport sized photo of applicant
• Medical certificate issued by the approved health centre from applicant home country (valid for 3 months)
• Foreign Worker Compensation Scheme (insurance)
• An insurance policy of Health Insurance Protection Scheme Foreign Workers (SPIKPA) (health insurance)

Upon receiving the approval letter, the foreign worker is able to apply the visa with reference (VDR) from Malaysia embassy (if needed). Then, they are to collect the Immigration Security Clearance (ISC) in their home country.

The temporary employment pass will be then issued once the foreign worker has passed the Foreign Worker Medical Examination Monitoring Agency (FOMEMA) medical examination in Malaysia within 30 days of arrival.

The candidate eligible for this type of pass:

The employing Company may proceed to put in the application with the following documents:

Similar to the application of the Temporary Employment Pass, the foreign worker is able to apply the visa with reference (VDR) from Malaysia embassy (if needed). Once arrived in Malaysia, the foreign worker is to visit the Immigration Department of Malaysia to receive the professional visit pass sticker on their passport.

There is no specific timeframe given by the Ministry of Home Affairs when it comes to application of work visa for foreign workers. It may take around 6 months to 12 months, depending on the completeness of documents furnished by the employing Company.