The influx of foreigners working in Malaysia is driven by the country’s strong economy and increasing demand for skilled workers. Companies hiring in Malaysia or relocating employees must understand Malaysia’s work visa requirements and procedures to ensure legal compliance.
Whether hiring remote workers or relocating long-term professionals, adherence to Malaysian regulations is crucial. Understanding local labor and tax laws helps avoid legal issues. For streamlined global hiring, partnering with a reliable Employer of Record (EOR) like Remote can simplify the process.
This guide provides insights on working in Malaysia legally and how employers can:
- Employ candidates in Malaysia without a local entity
- Hire non-citizens of Malaysia
- Relocate existing employees to Malaysia
- Comply with regulations for digital nomads in Malaysia
Importance of Immigration Compliance in Malaysia
Foreigners entering Malaysia as tourists may not realize they need additional documentation to work legally. Working without a proper work visa risks financial penalties or deportation. Malaysia’s digital nomad visa facilitates extended stays for remote workers.
Working in Malaysia without a valid work visa is a criminal offense, leading to imprisonment or deportation. Companies may face fines up to RM 10,000 (about USD 2,200) and/or imprisonment if found employing workers without proper documentation. Malaysia continually tightens immigration rules to combat illegal immigration.
Right-to-Work Checks in Malaysia
All non-citizens intending to work in Malaysia must obtain the correct right-to-work entitlements, regardless of their stay duration. Permanent residents, temporary residents, and work permit holders are legally allowed to work. Those without proper documents, such as tourists, cannot work legally. Thus, right-to-work checks are essential.
Employers must submit the required documents to the Immigration Department of Malaysia, including:
- Application form
- Employment contract
- Valid passport
- Photographs
- Confirmation letter from the employer
Upon submission and approval, foreign employees will receive a work visa or employment pass, allowing them to legally start work in Malaysia.
Work Visa and Permit Requirements
Malaysia mandates all foreign nationals to secure a work visa or permit for employment, including digital nomads. Penalties for working without a permit are severe.
Eligibility Requirements for a Work Visa
- Employment Pass: Requires educational qualifications (diploma, degree, or equivalent), relevant work experience, and a minimum salary of RM 3,000 (about USD 681) per month.
- Temporary Employment Pass (TEP): Requirements vary based on nationality and age. Applicants must be between 18 and 45 years and from eligible countries such as Bangladesh, India, Indonesia, and others.
- Professional Visit Pass: For specific categories like employees of foreign companies, Islamic religious teachers, and international artists.
Long-Stay Visa Types
For extended stays, foreign nationals can apply for an Employment Pass with three categories based on salary:
- Category I: For highly skilled workers with a basic salary of at least RM 10,000, valid for up to five years.
- Category II: For skilled employees with a salary above RM 5,000, valid for up to two years.
- Category III: For workers with a salary between RM 2,500 and RM 5,000, valid for up to one year.
Application Process
To obtain a work visa for Malaysia:
- Submit the following documents at the nearest Malaysian Embassy or Consulate:
- Completed application form
- Passport valid for at least six months
- Passport-sized photos
- Employment contract
- Confirmation letter from the employer
- After approval, employees receive a visa stamp. They must register with the Immigration Department within seven days and obtain a work permit to start working legally.
Work Visa Sponsorship Process
- Apply for foreign work quota approval from the Expatriate Committee.
- Undergo an interview with the Ministry representative.
- Submit employment pass applications to the Immigration Department.
- Obtain approval from the Expatriate Committee.
- The employee applies for a visa at a Malaysian Embassy or Consulate.
Digital Nomad Visa in Malaysia
Malaysia offers the DE Rantau Digital Nomad Pass (DNP), a 12-month renewable visa for digital nomads. Requirements include:
- A valid passport
- Remote employment with an overseas employer
- A minimum annual salary of USD 24,000
- Employment in the digital sector
- No criminal record
- Proof of health insurance
Application Steps:
- Gather documents (passport, photos, proof of income, resume, proof of work, criminal record, health insurance).
- Submit documents in English. Processing can take up to four weeks. Applicants will receive an email with a PDF and visa authorization letter upon approval.
For a smooth global recruitment process and to ensure legal compliance, seek proper legal counsel and utilize an EOR for assistance.