• EMPLOYMENT AUTHORIZATION

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    EMPLOYMENT AUTHORIZATION

     


    Following is a summary of the types of work permits/visas for Malaysia, the steps involved in obtaining employment authorization, and other relevant information for employees going to Malaysia on a work assignment. Unless otherwise indicated, the work pass process details provided below are based on the common scenario of an Intra-Company Transfer. Other scenarios and work pass categories and processes should be reviewed on a case-by-case basis .


    "Regularization" from Visitor to Work Status

    Depending on the type of work pass applied for, a foreign national employee may convert from Visitor status to Work status while remaining in Malaysia.

    Professional Visit Pass applicants must remain outside Malaysia until the PVP application has been approved. In-country conversion is not an option.

    In general, Employment Pass and Visit Pass (Temporary Employment) applicants can be in Malaysia when the application is submitted to MID. While they can remain in Malaysia on SVP status, they may not commence their assignments until they have obtained the relevant work pass. They may leave and re-enter Malaysia on SVP status while the work pass application is pending, and will not require any specific travel authorization to depart during this time.

    Nationals of China, India, Indonesia, the Philippines, Sri Lanka, Pakistan, Bangladesh, Nepal, Myanmar, North Korea and Vietnam who are Employment Pass and Visit Pass (Temporary Employment) applicants must remain outside Malaysia until their work pass is approved.

    In all cases, the endorsement of the work pass onto the passport is obtained in-country and will supersede the SVP.

     

    Types of Work Permits/Visas

    The major work pass categories are:

    The Professional Visit Pass (PVP) is suitable for assignments of up to 12 months for technical roles. Assignments to install or repair machinery, computer software or equipment or perform other technical duties, no matter how brief, would qualify for a PVP. The assignee must remain employed and on the payroll of his/her home company throughout the PVP assignment to qualify for a PVP. A contract or agreement evidencing the relationship between the assignee's home company and the Malaysian host company will also be required as a registered Malaysian company must sponsor all PVP applications. A PVP application is submitted to the MID, and the Inland Revenue Board must be notified.
     

    An Employment Pass is a long-term work permit for assignments of 2 years or longer. An Employment Pass can be valid for a period of up to 5 years, in accordance with the employment contract and subject to the discretion of the MID. A duly registered Malaysian company must sponsor the Employment Pass application.
     

    A Visit Pass (Temporary Employment) (VPTE) is suitable for assignments of less than 2 years. The duration of the VPTE will be in accordance with the period of assignment under the employment contract. A duly registered Malaysian company must sponsor the VPTE application.
    1. Professional Visit Pass
    2. Employment Pass
    3. Visit Pass (Temporary Employment)


     

    Basic Requirements
     
    In general, a foreign national ("the employee") assigned to work in another country must evidence a degree of proprietary knowledge, specialized skills, or managerial/executive-level skills that are not readily available in the destination country's domestic labor market.

    Employment of foreign nationals in Malaysia requires that the appropriate work authorization be obtained. The type of application will be determined by:
    1. Position and duties to be performed in Malaysia;
    2. Length of assignment;
    3. Company's activities.
    Depending on the nature of the local company's activities, the applications for an Employment Pass or Visit Pass (Temporary Employment) are usually submitted to, and processed by, the MID. However, approval authorities may vary based on the specific industry of the sponsoring company.
     

    Process Overview

    As a rule, applications for an Employment Pass or VPTE are filed with the MID. For applications of companies engaged in certain sectors and industries, certain government agencies are authorized to receive Stage One of the applications for expedited processing. These agencies include: Bank Negara (Central Bank of Malaysia), for companies in the banking or insurance business; Security Commission, for companies in the securities and futures business; Malaysian Industrial Development Authority, for companies in the manufacturing sector, manufacturing related services, hotel and tourism sector, and research and development sector.

    The application process with the MID is comprised of two stages:

    Stage One involves securing MID approval of the specific position the foreign national will fill in the sponsoring company's organization chart. During this time the employee will remain in his/her home or current host location.

    After the Malaysian company informs the employee that his/her proposed position has been approved by the MID, the next step will depend upon the employee's nationality.

    Visa Waiver. For Visa Waiver nationals, an entry visa is not required. Upon arrival in Malaysia, the employee and his/her family will be granted an "on-arrival" Social Visit Pass.

    Visa National. Nationals of certain countries are required to obtain a single-entry visa prior to entering Malaysia. The application for the single-entry visa may be made upon issuance of the Employment Pass Visa with Reference Letter by the MID.

    Upon approval of the position and provided an entry visa has been obtained (if applicable), the employee and his/her family members will be issued a Social Visit Pass upon entry to Malaysia, and will proceed to complete Stage Two of the Employment Pass or Visit Pass (Temporary Employment) process.

    Stage Two involves the application for the Employment Pass or VPTE and Dependent Passes as applicable. Until Stage Two is approved and the relevant EP or VPTE is endorsed on the employee's passport, the employee must strictly limit his/her activities to those of a SVP holder and may not commence work in the proposed capacity.

     

    (Host Country) Corporate Documents Required
    1. Documentation supporting the company's registration and financial position;
    2. Employment or secondment agreement;
    3. Documentation describing the position of the applicant;
    4. Application and local company's forms; and
    5. Information on salary and total benefits in kind.
     

    Employee and Family Documents Required
    1. Resume documenting the applicant's educational and professional qualifications, and past work experience;
    2. Copies of educational qualification (documents must be translated and certified by the Malaysian Embassy in the employee's home country if in a language other than English). Original documents should be presented upon arrival to finalize the process;
    3. Copies of relevant pages of passports of the employee and family members;
    4. Original civil marriage certificate (translated and certified by the Malaysian Embassy in the employee's home country if in a language other than English);
    5. Original birth certificates of all accompanying children (showing names of both parents, translated and certified by the Malaysian Embassy in the employee's home country if in a language other than English);
    6. Two passport-size photographs of the employee and each family member; and
    7. Application forms.

    Please note that the Malaysian Immigration Department and/or Malaysian Consulates reserve the right to request additional information and/or documentation.

     

    Processing Time


    The normal time to assemble the corporate and employee's personal documentation is approximately 2 to 4 weeks, although this will vary based on individual company and employee response times.

    The estimated time to conclude all immigration formalities is 6 to 8 weeks from the date of application for approval of the proposed position.


     

    Work Permit Validity Period


    The Employment Pass will be issued to match the term of the Employment Contract, for a minimum of 2 years and a maximum duration of up to 5 years.

    The duration of the VPTE will be in accordance with the period of assignment under the employment contract, which must be less than 2 years.

    An extension of both the Employment Pass and the VPTE is discretionary.

     

    For more information, please contact  one of our offices

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    Last Updated: 06 October 2012
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