Employment Pass Application in Malaysia
Malaysia’s growing economy and tax incentives have drawn many investors who have decided to set up a company in Malaysia. Whether you are a business owner or a professional seeking employment in Malaysia, it is important to understand the types of work pass available and the process for employment pass application.
This article will run through a deep dive into the conditions, requirements, and application process for employing foreign workers, to give some insight into our employment pass services.
What are the Types of Visas in Malaysia?
Employment Pass (EP)
For employees who have a specific skill set (usually technical or managerial). The minimum period for this pass is 2-years. EP Malaysia is available in Category I, II and III.
Temporary Employment Pass
For employees with a monthly salary of less than RM5,000. Also, applicable for employees with an employment period of less than 2-years.
Professional Visit Pass (PVP)
For employees with a monthly salary of less than RM 5,000. Also applicable for employees with an employment period of less than 2-years with a view of them undergoing training with a Malaysian company on behalf of an overseas company on a temporary basis.
Residence Pass-Talent (RP-T)
For expatriates with monthly salary of RM15,000 excluding allowances or bonuses. The RP-T can be renewed every 10 years is offered to expatriates with exceptional skills who wish to actively participate in bolstering Malaysia’s economy over an extended period.
Requirements for Employers Hiring Foreign Workers
Before hiring foreign workers, employers will need to consider several terms and conditions highlighted by the Ministry of Home Affairs — Immigration Department of Malaysia:
1. The foreign workers are only allowed to work within these sectors:
- Manufacturing
- Construction
- Plantation
- Agriculture
- Services
2. Employers must first obtain the quota to hire foreign workers from the Ministry of Home Affairs, One Stop Centre (OSC)
3. Foreign workers must be the age of at least 18 years old or above but below 45 years old at the time the application is made
4. The certified PASS for Immigration Security Clearance (ISC) can be retrieved at the source country based on this list.
5. The foreign workers must be deemed fit and healthy as approved by the medical centre in the source country based on this list.
6. The foreign workers must not be one of those listed foreign individuals who are prohibited from entering Malaysia under Section 8(3) of the Immigration Act 1963.
Employment Pass Application Process in Malaysia
To apply for an EP in Malaysia, these are the general steps:
1) Eligibility Determination
The Applicant must ensure he fulfils the eligibility criteria for the EP category that the Applicant intends to apply for. This includes having a job offer from a Malaysian company, possessing the required qualifications and experience, and meeting the salary threshold.
2) Obtain a job offer
Secure a job offer from a Malaysian employer who will act as the Applicant’s sponsor throughout the EP application process. Similarly, the Applicant can also become his own sponsor of EP should he incorporate his own company in Malaysia.
3) Pre-application documentation
Prepare the necessary documents, which typically include your passport, educational certificates, resume/CV, employment contract, and any other supporting documents requested by the authorities.
4) Employer’s application
Your Employer will submit the EP application on your behalf to the relevant government-approved agency based on the sector. This can be done electronically through the appropriate online portal. Before that, your employer will need to ensure the following requirements by the Ministry of Home Affairs — Immigration Department of Malaysia are satisfied:
The company then needs to apply for an “expatriate post” at one of the following government agencies:
- Multimedia Development Corporation — for jobs in the technology sector
- Malaysia Industrial Development Authority — for the manufacturing and services sector
- Malaysian Biotechnology Corporation — for jobs in the biotechnology sector
- Central Bank of Malaysia — for sectors in finance, banking, and insurance
- Securities Commission — for the securities and futures market sectors
- Expatriate Committee — for sectors that are not under the above
Prior approval is needed as the Malaysian government currently has strict regulations imposed on the number of foreign workers that a Malaysian-based company can employ.
If you intend to hire foreigners under a Malaysian company, they are required to prove to the authority why the chosen foreigners are important to the position and how can they contribute.
The companies will also need to state reasons why a local is unable to fill the position. Before proceeding with the Malaysia employment pass application, companies must request an allocation of quota from the Immigration Department.
5) Supporting documents
Ensure that all required supporting documents, such as company registration documents, business profiles, and financial statements, are submitted along with the application. Take a look at the list of items on our website here.
6) Application processing
Await the processing of your EP application by the respective agency. If you are a new Applicant, you will need to stay outside of Malaysia, until your application is approved. The processing time can vary, but it typically takes 4 to 8 weeks to receive a decision, upon submission of full documents.
7) Entry visa
If you are outside of Malaysia, you will need to apply for an entry visa/ Visa with Reference at the Malaysian Embassy or Consulate in your home country before traveling to Malaysia.
8) EP endorsement
Upon arrival in Malaysia, the Applicant’s Employer will assist the Applicant in obtaining the EP endorsement on his passport from the Immigration Department. This step formalises the Applicant’s legal status as an EP holder. These are a few of the steps that need to be taken:
- Make payment for your passport endorsement. This is for them to generate the employment pass sticker which will be pasted on your passport.
- Make a booking with MYXpats Centre to head down for submission of passport. They will physically stick the visa on your passport. If you are unable to go down on your own, you can create an authorisation letter to grant the individual the right to receive the employment pass on your behalf.
NOTE: You will still have to submit your passport to the officer at MYXpats — this means that the person whom you grant the rights to assist with this process should be someone you trust. The appointment date should be more than 5 working days after you have made payment.
From 1 March 2023 onwards, all foreign professionals holding the Employment Pass (Categories I, II, III) can now complete their endorsement at ESD Satellite Centre (ESC), Kuala Lumpur International Airport 1 (KLIA1). Applicants need to provide a Confirmation Letter for endorsement.
If unsuccessful, the endorsement will be done over the counter at the service centres outside of KLIA1.
The employment pass endorsement will be completed once you have received the sticker on your passport. After all these steps, you can enter and exit Malaysia anytime until your visa expires.
Employment Pass Services at Paul Hype Page
Our dedicated team of professionals is here to make the process smooth and hassle-free for both employers and employees. Whether you are an employer seeking to sponsor foreign talent or an individual looking to secure an EP, we provide personalized EP application services tailored to your needs.
Take a look at our guides here: