Foreign Professionals

Employing foreign professionals (in immigration terms referred to as “expatriates”, regardless of their contractual situation) in Malaysia is not difficult and does not require any specific quota contrary to hiring foreign workers. It is important to mention that only local entities can employ foreign professionals in Malaysia, regardless of whether they are hired permanently or being sent to Malaysia for short-term assignments. The reason why this right is reserved to local entities is that permit applications are submitted online and the platforms require prior and local registration, as well as compliance with statutory requirements such as social security payments and monthly income tax deductions. Also, entities must justify why they intend to hire foreign professionals.
 

Types of Permits for Employing Foreign Professionals in Malaysia

Local entities can hire foreign employees and apply for different types of permits. It is important to know that there are restrictions for companies that only have regional and representative offices in Malaysia. Regional and Representative offices are not allowed to apply for Professional Visit Passes. Consequently, they are not authorised to hire foreign interns or bring in foreign short-term staff.

The following table provides an overview of which entity is allowed to request which approval types by using the accurate application mode:

Employing Foreign Workers in Malaysia

The Employment Act 1955 defines “foreign workers” as employees who are not citizens*. To employ foreign workers there are several requirements that must be met. Companies should take note of the restrictions on hiring foreign employees, such as limiting hiring to sectors such as construction, manufacturing, agricultural, plantation and services sectors.

Apart from that, employment of foreign workers is also subjected to specific quota requirements from the Ministry of Home Affairs (MOHA).

* Immigration Act 1955, s. 2 (1).

Quota and eligibility

As an employer, you must first obtain approval from the Local Centre of Approval from the Ministry of Home Affairs (MOHA) to hire foreign workers to work for Malaysian based companies.

Generally, companies operating in construction, agriculture, plantation, manufacturing and services industries may be approved to hire foreign workers. Once the application is submitted, an interview will take place with the employer and an authorized representative from the Ministry of the particular sector the company conducts business in. Once the application is successful, a conditional letter of approval is issued to the employer to allow the hiring of foreign workers.

Sending staff to Malaysia or Hiring Foreign Interns

Sending foreign staff to Malaysia is a normal process and many companies are regularly doing so in order to provide, for example, specialised after sales services. However, this requires careful planning in advance as companies should check the visa and work permit requirements, liability to personal income tax or insurance coverage in advance.

Getting started

Most activities in Malaysia require a work permit. This includes consultancy, providing training or the maintenance or repair of machinery in production or work executed by independent consultants, service engineers, technicians or construction supervision etc. Although a repair or service can be urgent, it is not possible to apply for work permits or visa over night or within 48 hours as supporting documents are required. Additionally, the minimum processing time for most permit applications is fourteen (14) working days and additional time should be calculated to schedule an appointment at the respective Embassy or Consulate office of Malaysia in order to apply for a Single-Entry Visa.

Short-Term (12 months) vs. Internships and Trainings (up to 6 months) in Malaysia