FOREIGN DIRECT INVESTMENT (FDI) in Malaysia: The Business Licenses and Approval Required before Applying for Working Permits

FOREIGN DIRECT INVESTMENT (FDI) in Malaysia: The Business Licenses and Approval Required before Applying for  Working Permits

There are 6 authorized bodies / agencies that approve the Expatriate’s application for a post. This is based on the “core business” of the company. These agencies are:-

No Agency Position/Field
1. Malaysian Industrial Development Authority (MIDA) Expatriate post in the following fields in the private sector:

Manufacturing company (new or existing) which is involved in expansion plansManufacturing

Related Services – Regional Office, Operational Headquarters, Overseas Mission, International Procurement Centre etc.

Hotel & Tourism Industry

Research & Development Sector

2. Multimedia Development Corporation( MDeC ) Expatriate Post and Skilled Foreign Worker in Information Technology based companies


3. Public Service Department (PSD) Doctors and nurses working in government hospitals or clinics

Lecturers and tutors employed in Government Institutes of Higher Education (IPTA)

Contract Posts in Public Services

Recruitment process jobs offered by the Public Service Commission (SPA) or government related agencies


4. Central Bank of Malaysia (BNM) Expatriate posts in the following sectors:

Banking, Finance,Insurance

5. Securities Commission (SC) Expatriate posts in Securities and Share market.


6. Expatriate Committee (EC) Expatriate posts in private and public sectors other than those under MIDA, MDeC, PSD, BNM and SC’s jurisdiction




Conditions of Application through the Expatriate Committee (EC)

Application for Expatriates is based on the following:


1. Minimum Paid-up Capital:

The minimum paid-up capital for a Private Limited Company/Public Listed Company effective 1st January 2009 is as follows:-

No Equity Capital
1. 100% Locally Owned RM 250,000.00
2. Local and Foreign Owned RM 350,000.00
3. 100% Foreign Owned RM 500,000.00

This condition is not applicable to Incorporated Companies, Limited Companies and Associations which are registered under Special Acts.


2.     Recommendations from Monitoring Agencies

No. Ministry/Agency Related Fields
1. Ministry of Higher Education/Ministry of Education Lecturer, tutor and teacher
2. Ministry of Health Medical Doctor, Nurse and Traditional Medical Practitioner
3. Football Association of Malaysia Footballer
4. National Sports Council Athlete and Coach
5. Civil Aviation Department, Malaysia Pilot and Civil Aviator
6. Ministry of Tourism Tourism agencies
7. Malaysian Professional Golf Associates Golf Related Activities
8. Biotechnology Corporation of Malaysia Bio-technology related activities.



3. Registration with the Monitoring Agencies

i.         Construction Industry Development Board (CIDB)

For companies that run activities related to construction and maintenances

ii. Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC)

For companies that have foreign equity involvement in wholesaling, marketing and retailing (including restaurants) and direct selling.


Expatriate Committee’s Consideration Criteria

Applications that meet and fulfill the following criteria would be considered:

1.    Company’s Equity

2.    Company’s Activities

3.    Local Human Resource

4.    Relevance of post to company’s activities

5.    Monthly income

6. Age and working experience


Checking of Expatriate Committee’s Decision

1. Through the Official Website of Immigration Department of Malaysia at here.

2. By post.


Required Documents

One (1) set of application form together with the following supporting documents:

1.    Letter of Authority from the company which includes:

  1. A copy of Identification Card (Mykad)
  2. Position in the company

2.    DP10 Form

3.    Cover letter from the company explaining the company’s activities and justification (Letter of Appeal for appeal cases)

4.    Expatriate Resume – A copy of the Expatriate’s Academic qualifications.

5.    A copy of the company’s registration documents (SSM), recent Form 9, 24 & 49 (to be certified by the Companies Commission of Malaysia)

6.    Recommendation letter from a monitoring agency in the related sector:
i. Education- Ministry of Higher Education/Ministry of Education, Malaysia
ii. Health (Modern/Traditional) – Ministry of Health, Malaysia
iii. Tourism- Ministry of Tourism Malaysia
iv. Civil Aviation- Department of Civil Aviation, Malaysia (DCA)
v. Sports- National Sports Council (MSN)
vi. Football- Football Association Malaysia (FAM)
vii. Equestrian- Equestrian Association of Malaysia

7.    Trade license from the Local Council (PBT)

8.    Additional requirements:

  1. Photocopy of CIDB license/ Contract Project (for construction only)
  2. Direct Selling license from the Ministry of Domestic Trade, Co-operatives and   Consumerism
  3. Letter of Approval from the Ministry of Domestic Trade, Co-operatives and Consumerism (Wholesaling & Retailing business/Restaurants with foreign equity).

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