FOREIGN DIRECT INVESTMENT (FDI) in Malaysia: The Types of Working Permits and Application Procedures

FOREIGN DIRECT INVESTMENT (FDI) in Malaysia: The Types of Working Permits and Application Procedures

 

There are a number of classes and types of working visas that a foreign- owned Malaysian Company or a Representative Office may apply:-

 

i)    Visit Pass (Temporary Employment)

The pass is issued to foreigners who enter the country to take up employment for less than 24 months.  

 

ii)  PROFESSIONAL VISIT PASS-

The pass is issued for the purpose of engaging on short-term contract with any agency.

The categories of foreigners who are eligible are Professionals/ Volunteers, Artistes, and Missionaries (Islam or other religions).

The validity of the pass varies but it does not exceed twelve months at any one time.

Applications should be made by the agency concerned.

 

iii)      EMPLOYMENT PASS-

The pass is issued to foreigners who enter the country to take up employment for a minimum period of 2 years, and is issued after the applicant has obtained the approval for expatriate post from the relevant authorised agencies.  The application criteria are as follows: –

 

Availability:

Foreign Owned Local Company, and any other company

 

Paid Up Capital Requirement:

1)    100% local own company: Paid up capital of RM250,000.00

2)    Joined owned by foreign and Malaysian: Paid up capital of RM350,000.00

3)    100% foreign owned company: Paid up capital of RM500,000.00

 

Types of Employment Pass:

KEY POSTS

These are high level managerial posts in foreign-owned private companies and firms operating in Malaysia. Key posts are posts essential for companies to safeguard their interest and investments. The expatriates are responsible in determining the company’s policies in achieving its goal and objectives.

 

TIME POSTS

  1. a) Executive Post These are intermediate level of managerial and professional posts. The post requires professional qualifications, practical experience, skills and expertise related to the respective jobs. The expatriates are responsible in implementing the company’s policies and supervision of staff.
  2. b) Non-Executive Post These are posts for the performance of technical jobs that require specific technical or practical skills and experience.

 

The approval of key posts of companies undertaking Manufacturing Activities, R&D Activities, Hotel and Tourism Projects and other services; and applying Tax Incentives under MIDA’s Purview will be subjected to the condition that the company must be incorporated in Malaysia and must deposit its foreign paid-up capital of at least RM1,000,000. However, the number of key posts cannot be linked directly with the foreign paid-up capital.

 

The approval for the term posts will be imposed the following conditions:

  1. Minimum basic salary of at least RM5,000;
  2. Minimum academic qualification and minimum experience;

 

Guidelines on the Employment of Expatriate Personnel

There are two stages in the employment of expatriates:

a. Application for an expatriate post from relevant authorised bodies determined by the nature of the business.
b. Upon approval of the expatriate posts by the approving bodies, the company must submit an application to the Immigration Department for endorsement of the employment pass.

 

https://www.mida.gov.my/setting-up-content/employment-of-expatriates/

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[1] Chapter-4-Immigration-Procedures.pdf (mida.gov.my)