Malaysia has emerged as a vibrant hub for business and investment in Southeast Asia, attracting companies seeking to leverage its strategic location, skilled workforce, and supportive business environment. Understanding the Employment Pass (EP) application process is crucial for companies looking to hire foreign talent. This article explores the essentials every company should know about obtaining an EP in Malaysia.
Understanding 3 Types of Employment Passes and their Categories
Employment passes are categorised into employment pass Malaysia category 1, 2, and 3. Each category has specific eligibility criteria tailored to meet the diverse needs of foreign workers and employers in Malaysia. For more information, refer to the Reclassification of the Employment Pass Category Malaysia.
The Employment Pass (EP) is a work permit allowing expatriates to be employed by organisations in Malaysia, valid for up to 60 months, depending on the employment contract. Before an EP can be issued by the Immigration Department of Malaysia, the Expatriate Committee (EC) or relevant authorities must approve the position for foreign talent. In addition to the employment pass, there are three related passes:
a. Dependant Pass
This pass permits employment pass holders to apply for a Dependant Pass for their spouse, children and legally adopted children under 18.
b. Long-Term Social Visit Pass
This pass permits employment pass holders to apply for a Long-Term Social Visit Pass for their family members, such as parents/parents-in-law, adult children, or legally adopted adult children over 18.
To apply for a Dependant Pass and Long-Term Social Visit Pass, visit here.
c. Social Visit Pass (Temporary Employment) - Foreign Maid
This social visit pass permits the employment pass holder to hire a foreign maid for temporary employment in Malaysia.
New Regulations Regarding the Employment of Foreign National
The Department of Labour Peninsular Malaysia, Ministry of Human Resources, has outlined that Section 60K of the recently amended Employment Act 1955, enforced from 1st January 2023, aims to strengthen the management of foreign workers' employment. This includes empowering the Director General to approve employers intending to hire a foreign employee.
Under the new regulations, employers must obtain prior approval from the Director General of Labour (DGL) to employ non-Malaysian and non-permanent residents who require a work permit in Malaysia. Approval from the Director General of Labour (DGL) is contingent upon several conditions:
- The employer has no prior convictions related to human trafficking or forced labour.
- There are no outstanding breaches under the Employment Act against the employer.
- The employer has complied with social security, minimum wage, and accommodation standards.
Once approval is secured from the Director General of Labour (DGL), employers should follow these steps:
a. Apply for a quota to hire foreign workers from the FWCMS One Stop Center. You may refer to the document checklist that is available on their website.
b. Identify specific positions suitable for a foreign employee. These positions typically require specialised skills or expertise that may not be readily available among Malaysians, such as executive or highly technical roles.
c. Upon selecting a suitable candidate, submit the necessary documentation to the Immigration Department.
d. Proceed with applying for an employment pass detailing why the selected foreign candidate is most suitable for the role.
e. The approval process for employment pass Malaysia processing time generally takes approximately three months to complete.
For further details, please refer to the foreign workers' employment guidelines provided by the Department of Labour Peninsular Malaysia, Ministry of Human Resources.
2 Types of Employment Visa for Foreign Workers
Companies should be aware of two types of employment visa Malaysia when hiring foreign employees for their organisation.
a. The expatriate visa Malaysia is granted to nationals of countries where a single-entry visa is required for professional employment purposes in Malaysia. Eligibility is determined based on the applicant's nationality. Upon arrival in Malaysia, holders of the expatriate eVISA are required to proceed with obtaining their long-term working pass.
b. The working visa Malaysia for eVisa foreign workers is intended for nationals of countries where a single-entry visa is mandatory for temporary employment in Malaysia. Eligibility for this visa category depends on the applicant's nationality. Upon arrival in Malaysia, foreign workers holding this eVISA must obtain their long-term work permit Malaysia.
4 Steps for Companies to Follow When Hiring Foreign Employees
a. Check The Eligibility of a Company to Hire Foreign Employees
Companies must verify their eligibility before hiring foreign employees. The Immigration Department of Malaysia outlines the requirements for company registration.
b. What Are the Requirements for Hiring Foreign Workers?
To hire foreign workers in Malaysia, employers and companies must adhere to specific guidelines and requirements to ensure compliance with immigration and labour laws. These requirements help regulate the employment of foreign nationals and maintain proper workforce management. Below are the key requirements from the Immigration Department of Malaysia's Ministry of Home Affairs:
- Eligible Sectors: Employment in the Manufacturing, Construction, Agriculture, Plantation, and Services Sectors.
- Quota Approval: When hiring foreign workers, employers/companies must obtain quota approval from the One Stop Centre (OSC).
- Age Requirement: Workers must be between 18 to 45 years old at the time of application.
- Health Certification: Workers must be certified healthy by a designated health examination centre in their source country (see the list of approved health centres).
- Immigration Compliance: Workers must not be listed among individuals prohibited from entering Malaysia under Section 8(3) of the Immigration Act 1959/1963.
- Source Countries: Foreign workers must come from approved source countries, which include the following:
| Country | Male Workers | Female Workers | Allowed Sectors |
| Indonesia, Thailand, Cambodia, Bangladesh, Myanmar, Laos, Vietnam, Pakistan, Sri Lanka, Turkmenistan, Uzbekistan, and Kazakhstan | ✓ | ✓ | Permitted to work in all sectors |
| Nepal | ✓ | ✓ | Permitted to work in all sectors, including the security sector (male), as a security guard. |
| Philippines | X | ✓ | Male workers are permitted to work in all sectorsFemale workers are only permitted to work as a foreign domestic helper |
| India | ✓ | ✓ | Permitted for the service sector (including sub-sectors like Indian community businesses, laundry/cleaning services, and cargo), agriculture, farming, manufacturing, and construction. |
c. Complete Your Company Registration with the Expatriate Services Division (ESD)
The Expatriate Services Division (ESD) is part of the Immigration Department of Malaysia and acts as a one-stop centre for companies. It helps companies register and submit expatriate-related immigration information online, making it easier to hire expatriates.
The ESD offers services such as company registration and issuing different expatriate passes. All companies need to register with the ESD before they can hire expatriates. You can register here on their website. (Here)
Below is an overview of the expatriate application process from the Expatriate Services Division of the Immigration Department of Malaysia.
You may submit the documents listed below, as specified by the Expatriate Services Division of the Immigration Department of Malaysia. For more information, please refer to their company registration FAQ.
d. Complete The Payment For The Employment Pass
The company must complete the employment pass payment to finalise your application process. Once payment is confirmed, you can proceed with the next steps for obtaining an employment pass for foreign workers.
Below are the employment pass Malaysia fees from the Immigration Department of Malaysia
Conclusion
Obtaining an Employment Pass (EP) in Malaysia is essential for businesses benefiting from the country's vibrant economy. Knowing the different types of EPs and their categories helps companies hire foreign talent smoothly. Recent updates in the Employment Act emphasise the need for businesses to follow regulations when employing foreigners.
From getting approvals through the Expatriate Committee to meeting immigration and labour requirements, each step ensures foreign workers integrate well into Malaysian companies. Businesses can hire foreign employees efficiently by following these guidelines and using resources like the Expatriate Services Division. This supports their growth and contributes to Malaysia's economic progress.
