Work visas in Malaysia: An employer’s guide

The number of foreigners working in Malaysia has increased lately due to the country's strong economy and growing demand for labour.

Companies hiring in Malaysia or those relocating their team members must familiarize themselves with the country's immigration requirements to ensure they comply with local legislation.

Operating locally requires a clear understanding of tax and labor laws to avoid legal infractions. Note that any form of remote work conducted in Malaysia requires appropriate work authorization, regardless of the length of stay.

The most reliable way to ensure compliance with local regulations is by partnering with a reputable Employer of Record (EOR) that can help companies hire and manage employees in Malaysia with full confidence in meeting all legal requirements.

This guide serves as a resource for working in Malaysia legally.

Which workers need a right-to-work check in Malaysia?

Any noncitizen who intends to work in Malaysia must obtain the correct right-to-work entitlements regardless of the length of their stay. Permanent residents, temporary residents, and work permit holders can legally work in Malaysia.

When employers are ready to hire a foreign worker in Malaysia, they must submit all the documents and information to the Department of Immigration Malaysia on behalf of the employee.

After completing the paperwork and submitting it to the Department, the foreign employee will get an employment visa or pass. Only after they receive the pass can they legally start working in Malaysia.

Do noncitizens need a Malaysian work permit or visa?

Malaysia requires all workers to obtain a permit for employment — even when working remotely as a digital nomad. The penalty for working in Malaysia without a permit is severe, so make sure to abide by the law before starting the job.

What are the eligibility requirements for a work visa in Malaysia?

As Malaysia tightens its immigration rules and regulations, the government has put in place some eligibility requirements depending on the type of visa.

Employment Pass

To qualify for a Pass, the employee must meet the following requirements:

• Educational qualifications (diploma, degree, or equivalent)
• Suitable work experience
• A monthly salary of RM 3,000–10,000, depending on the pass category.

Temporary Employment Pass

To qualify for this Pass in Malaysia, applicants must generally be between 18 and 45 years of age, and from an approved source country. While there are no specific qualification or experience requirements, eligibility may vary based on nationality, sector, and gender-related restrictions set by the authorities.

Professional Visit Pass

A Professional Visit Pass (PVP) in Malaysia is a short-term visa, valid for up to 12 months (or six months for training in factories or hotels), designed for foreign professionals. This includes experts, artists, religious teachers, government officials, volunteers, students, or film crews who are sponsored by a Malaysian entity to provide specific services or training on behalf of an overseas employer.

For a successful global recruitment process, get proper legal counsel and paperwork to ensure employees receive their required visas .

What are the long-stay visa types in Malaysia?

Those from abroad looking to remain in Malaysia for an extended period may apply for the Pass which offers three categories of long-stay work visas for foreign workers based on the employee's salary.

Employment Pass

The Pass is issued to individuals who are directly employed by a Malaysian company. The employer must obtain approval from the Expatriate Committee or relevant regulatory body before applying. The duration of the pass is tied to the contract of employment and typically ranges from one to five years.

The employer needs approval from the Expatriate Committee or a relevant regulatory body to get a Pass. The employer determines the pass duration, which ranges from one to five years.

Category I

This type of visa is for highly skilled foreigners with a basic salary of at least RM 10,000. It is valid for up to five years.

Category II

This type of visa is for skilled foreign employees with a basic salary of above RM 5,000 with a contract of up to two years.

Category III

This type of visa is for foreign employees with a basic monthly salary between RM 3,000 and RM 5,000 and a work contract of one year or less.

Work visa application procedures for Malaysia

The process involves:

1. Employer obtains quota approval

• Employer applies for foreign work quota approval from the Expatriate Committee
• Employer participates in an interview with a Ministry representative from their sector
• Employer receives quota approval and letter of approval from the Expatriate Committee

2. Employment pass application

Employer submits pass applications for each foreign employee to the Immigration Department

3. Employee visa application

Employee applies for a visa at the nearest Malaysian Embassy or Consulate with:

• Completed application form
• Passport valid for at least six months
• Passport-sized photos
• Original contract
• Confirmation letter from employer
• Application fees (varies by country)
  
  

Once the Pass is approved, the employee will typically receive a Visa with Reference (VDR) from the Malaysian embassy or consulate in their home country. After arriving in Malaysia, Remote will help coordinate the remaining steps with the local authorities, including endorsement of the Pass. The employee can start working legally once the pass has been issued and stamped on their passport.

Here's is the application procedure for work sponsorship in Malaysia:

• The employer has to apply for foreign work quota approval from the Expatriate Committee to employ workers abroad.
• After applying, the employer is interviewed by a representative from the Ministry for the company's particular sector.
• After the quota approval, the employer has to submit employment pass applications for each employee to the Department of Immigration.
• The employer will then need to obtain a letter of approval from the Expatriate Committee.
• The employee can then apply for a visa at a Malaysian Embassy or Consulate, depending on their position and field of work.
• After submitting the required documents, you can pay the fees and wait for approval. Each country has a different fee, so check with the local consulate.
• After visa approval, the employee can legally travel to Malaysia and work in the country.

What are the visa requirements for digital nomads in Malaysia?

Malaysia has launched a digital nomad visa known as DE Rantau Digital Nomad Pass (DNP). The DNP is a 12-month renewable visa that allows digital nomads to live and work in the country. The applicant can also bring their spouse and children with them under this visa.

How Remote makes compliance in Malaysia so much easier

Relocation can be a stressful experience for both employees and employers. Dealing with visas, immigration, digital nomad requirements, and taxes can become overwhelming and time-consuming.

To learn more about the processes involved in employee relocation, download Remote's Relocation Guide, which is packed with tips on how you can ensure a hassle-free move. Contact us today if you have queries about relocating employees or to learn more about our visa sponsorship services.