Fairuz Razak
Senior Manager, Expatriate & Compliance Affairs Services
+60 3 9235 1810 fairuz.razak@malaysia.ahk.de
Expatriate Services Division (Immigration Department)
The Expatriate Services Division (ESD) under the Immigration Department of Malaysia was established to provide services for expatriates and companies to submit expatriate visa applications and other visa-related matters via an integrated data platform. Therefore, companies will experience improvement in helping expatriates to secure approval for work permits.
It is a formulated tiering system in ESD Online that will auto populate the tiering of companies from Tier 1 (highest) to Tier 5 (lowest).
ESD Online is an integrated system with the Companies Commission of Malaysia (SSM), Inland Revenue Board of Malaysia (LHDN), Immigration Department of Malaysia system and is accessed by the Royal Malaysia Police (PDRM).
Based on the information extracted from SSM, companies are ranked and calculated by the system according to the 5 key indicators:
- Relevance to the Twelfth Malaysia Plan (RMK-12)
- Company Lifecycle Stage
- Revenue
- Issued Capital
- Track Record
Department of Labour Peninsular Malaysia (JTKSM)
APPLICATION FOR PRIOR APPROVAL TO EMPLOY FOREIGN WORKERS UNDER SECTION 60K OF THE EMPLOYMENT ACT 1955
Section 60K of the Employment Act 1955 mandates employers to obtain prior approval from the Department of Labour Peninsular Malaysia (JTKSM) before employing foreign workers. In this context, foreign workers refer to non-citizens as defined under Section 2 of the Employment Act 1955.
The obligation to obtain prior approval under Section 60K applies to the recruitment of new foreign workers starting from January 1, 2023. However, this requirement does not apply to the renewal or extension of permits for existing foreign workers.
This Act is applicable to private sector employers and workplaces in Peninsular Malaysia and the Federal Territory of Labuan. Failure to comply with the provisions of Section 60K of the Employment Act 1955 may result in a fine of up to RM100,000, imprisonment of up to five years, or both.
This Act also applies to new applications for Employment Passes and Professional Visit Passes. Dependant Pass and Resident Pass-Talent are exempted.
Xpats Gateway
Effective 24 April 2024, all new and renewal applications for Employment Pass (EP) must be submitted through the Xpats Gateway.
Companies that are regulated by any respective Agencies need to obtain a Support Letter for each Employment Pass (Category I, II and III) application from the relevant Agencies.
Please refer to the table below for the reference list:
| No. | Sectors | Agencies |
|---|---|---|
| 1 | Manufacturing and Selected Services Sectors | Malaysian Investment Development Authority (MIDA) |
| 2 | Financial Services (Licensed Institutions, Payment Services Regulatees and Representative Offices) | Central Bank of Malaysia (BNM) |
| 3 | Securities and Derivatives Markets | Securities Commission Malaysia (SC) |
| 4 | Companies operating within East Coast | East Coast Economic Region Development Council (ECERDC) |
| 5 | Healthcare (Field: Traditional and Complementary Medicine) | Traditional & Complementary Medicine Division, Ministry of Health (MOH) |
| 6 | Tourism | Ministry of Tourism, Arts & Culture (MOTAC) |
7 | Biotechnology and Bio-based Sector | Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation) |
| 8 | Aviation | Civil Aviation Authority of Malaysia (CAAM) |
| 9 | Construction | Construction Industry Development Board (CIDB) |
| 10 | Education | Ministry of Education (MOE) |
| 11 | Mining, Quarrying & Mineral Processing | Department of Mineral & Geoscience (JMG) |
| 12 | Women, Family & Community Development related organisation | Ministry of Women, Family & Community Development (KPWKM) |
| 13 | Sports | National Sports Council (MSN) |
| 14 | Football | Football Association Malaysia (FAM) |
| 15 | Broadcasting | Radio Televisyen Malaysia (RTM), Ministry of Communications & Digital (KKD) |
| 16 | Healthcare (Field: Nursing) | Malaysia Nursing Board, Ministry of Health (MOH) |
| 17 | Healthcare (Field: Allied Health Science) | Allied Health Science Division, Ministry of Health (MOH) |
| 18 | Film Industry | National Film Development Corporation Malaysia (FINAS) |
| 19 | Architectural | Board of Architect (LAM) |
| 20 | Equestrian Activities | Equestrian Association of Malaysia (EAM) |
| 21 | Horse Racing | Malayan Racing Association (MRA) |
| 22 | Crops, Livestock and Aquaculture | Ministry of Agriculture & Food Security Malaysia (MAFS) |
| 23 | Healthcare (Field: Medical) | Malaysian Medical Council (MMC), Ministry of Health (MOH) |
If the company is categorised in the sectors listed below, the employer can proceed to directly apply for an Employment Pass application in ESD Online. The Expatriate Committee and Immigration Department of Malaysia reserves the right to request for a Support Letter, if necessary.
- Business Services
- Wholesale & Retail
- Oil, Gas & Energy
- Logistics
- Electrical & Electronics
- Automotive
Get in touch
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Siti Syahirah Binti Ahmad Zaki
Manager, Expatriate & Compliance Affairs Services
+60 3 9235 1820 syahirah.zaki@malaysia.ahk.de
