Malaysia
Do You Need a Work Permit in Malaysia?
In Malaysia, the requirement for a work permit for foreign nationals is driven by both economic and regulatory factors. Protecting employment opportunities for Malaysian citizens remains a priority, with the government ensuring that its citizens are given first preference in job sectors where local expertise is available. This policy helps maintain lower unemployment rates and supports the national workforce.
Another crucial reason for the work permit system is to bolster Malaysia’s economic development goals. By using the work permit system, Malaysia attracts highly skilled foreign professionals, particularly in sectors like technology, manufacturing, and services, which are vital for driving innovation and fostering sustainable economic growth.
In 2024, Malaysia introduced new quotas and stricter regulations on foreign hiring to ensure industries with critical skill shortages are prioritized.
Number of Expats:
2,965,300
Expats Job Websites:
Popular Industries for Expats:
IT, Engineering, Banking and Finance, Teaching, Marketing and Tourism.
Types of Malaysia Work Permits Available
Foreign nationals cannot legally work in Malaysia without a work permit, typically categorized under Employment Passes or Temporary Employment Passes. These differ depending on the nature of employment and the duration of the contract.
Employment Pass:
This is the most common work permit, divided into three categories:
- Category I: For expatriates earning RM10,000+ monthly with a contract up to five years.
- Category II: For expatriates earning between RM5,000 and RM9,999 with a two-year contract.
- Category III: For expatriates earning RM3,000 to RM4,999 with a one-year contract.
- Stricter enforcement and approval processes have been introduced, especially for Categories II and III.
Temporary Employment Pass:
This is issued to semi-skilled workers in specific sectors such as construction, manufacturing, and agriculture.
- Professional Visit Pass:
Granted to professionals who intend to work temporarily in Malaysia, typically for up to 12 months.
Requirements for Malaysia Work Permits by Malaysian Employers
Malaysian employers must meet several requirements to sponsor a foreign employee:
- Apply for Expatriate Post or Quota Approval from the appropriate authority.
- Provide proof that no local candidates were qualified for the position.
In 2024, Malaysia introduced more stringent criteria for Expatriate Post approvals, requiring additional documentation demonstrating the necessity of hiring foreign talent.
Requirements for Malaysia Work Permits by Employees
Foreign employees must submit the following documents to obtain a work permit:
- Valid passport
- Proof of educational qualifications and relevant work experience
- Three passport-sized photos
- Official employment contract
- New in 2024: All foreign workers are required to provide proof of comprehensive medical insurance.
Malaysia Work Permit Application Process
The process involves the following steps:
- Employers apply for quota approval and Expatriate Post approval.
- Once approved, the Employment Pass application is submitted to the Immigration Department.
- The employee then submits their visa application, depending on their role and industry.
- Submit required documents, pay visa fees, and await approval. Visa fees may differ depending on nationality.
Timeframe for Work Permit Application
The complete process of obtaining a Malaysian work permit, from Expatriate Post approval to final visa issuance, usually takes 7-12 weeks. However, it can vary based on industry and the complexity of the application.
How Does Multiplier Help With Work Permits?
With the many permissions and approvals required to employ foreign workers, the work permit application process in Malaysia can be complex. Multiplier simplifies this by offering SaaS-based solutions to help companies navigate work permit applications smoothly while meeting regulatory requirements.
