08 Oct Foreigner Work Permit & Visa Malaysia: Employer’s Guide
Malaysia’s economy is steadily expanding across key sectors, positioning the country as a central hub for regional business growth. As companies scale, many Malaysian employers find themselves needing to hire skilled foreign professionals to fill skill gaps and labour shortages.
However, hiring foreign talent in Malaysia involves navigating a complex process of work permits, employment passes, and government regulations, where missteps can be costly.
This article provides a general overview of the main types of work permits and visas in Malaysia.
It also outlines eligibility requirements, application steps, common mistakes, and associated costs to help your company stay compliant.
Categories of Foreign Workers in Malaysia
Foreign employees in Malaysia are classified based on their skills, industry, and job nature. The main categories include:
Foreign Professional or Skilled Workers
This category comprises highly skilled foreign professionals employed in industries such as Information Technology (IT), engineering, healthcare, and senior management roles.
Their employment is generally governed by the Expatriate Services Division (ESD) of the Immigration Department. The Malaysia Digital Economy Corporation (MDEC) facilitates expatriates’ work pass applications for the IT and digital sector.
Low- or Semi-Skilled Foreign Workers
This category includes individuals engaged in manual labour or semi-skilled roles across various sectors, such as manufacturing, construction, plantation, agriculture, and domestic services.
Their employment is managed by the Ministry of Home Affairs (MOHA) through various channels, often involving specific quotas and bilateral agreements with their countries of origin.
Types of Work Permits and Work Visas in Malaysia
Malaysia offers several categories of work permits, each designed to cater to different professional needs and lengths of stay. Selecting the correct pass is vital to a successful application.
While a work visa primarily grants entry for work purposes, a work permit (such as the Employment Pass) authorises actual legal employment in Malaysia. Some passes are issued in partnership with government-linked agencies (GLC), such as TalentCorp and MDEC.
The main work permits and visas are:
- Employment Pass (EP)
- Temporary Employment Pass (TEP)
- Foreign Domestic Helper (FDH) Visa
Special programme passes offer pathways for specific talent pools:
- Residence Pass-Talent (RP-T)
- Malaysia Digital Nomad Visa (DE Rantau)
Work Passes for Foreign Professionals
These are the most common passes for highly skilled expatriates in Malaysia:
| Pass Type | Key Eligibility | Pass Duration | Purpose | Notes |
| Employment Pass (EP) | Professionals, managers, or technical experts | Up to 5 years Renewable | Tied to a specific employer and role | Allows for dependent passes for family members |
| Professional Visit Pass (PVP) | Short-term assignments, training, or consultations | Up to 12 months (6 months for training) Not renewable for all types | For temporary, non-employment assignments (not for direct local employment) | Does not allow dependents |
| Residence Pass-Talent (RP-T) | Highly skilled talent with prior work in Malaysia | Up to 10 years Renewable | Offers greater flexibility for changing employers |
Spouses can work without a separate EP Pathway to long-term residency |
| Malaysia Digital Nomad Visa (DE Rantau) | Digital freelancers or remote workers for foreign firms | Up to 12 months Renewable for an additional 12 months | For remote work or freelancing only |
Not for local employment in Malaysia Allows bringing dependents |
Work Passes for Semi- or Low-Skilled Workers
For employers hiring foreign labour in essential industries:
| Pass Type | Key Eligibility | Pass Duration | Purpose | Notes |
| Temporary Employment (TEP) | For foreign workers in approved semi-skilled or low-skilled sectors | Issued for 12 months Renewable annually up to 10 years (3 years under the 6P program) | Tied to a specific employer and sector | Does not allow dependents |
| Foreign Domestic Helper (FDH) Visa | Foreign nationals employed as live-in domestic helpers | Issued for 12 months Renewable annually | Specifically for domestic work Tied to the employer’s household |
Strict employer eligibility applies Female applicants only Cannot change employer or role easily |
Understanding the right foreigner work pass category helps avoid rejection or delays.
At Moore-Bzi, our team specialises in expatriate work permits, offering businesses tailored support to navigate each step confidently.
Employer Requirements and Eligibility
Before sponsoring a foreign employee, companies must meet Malaysia’s employment visa eligibility criteria. Many employers engage work permit professional consultants for expatriates to review compliance requirements and prevent costly errors.
1. Company Prerequisites and Compliance Requirements
Expatriates
To be eligible to sponsor foreign talent, your company must be properly registered and compliant legal entity in Malaysia.
| Prerequisites | Details |
| Eligible Legal Identities |
Companies registered with the Companies Commission of Malaysia (SSM):
|
| Regulatory Compliance |
Registration with ESD. No suspended accounts or unresolved compliance issues. |
| Business & Tax Compliance | Maintain valid business licenses and ensure all tax filings are current. |
| Proof of Talent Gaps | Demonstrate the need for foreign talent, usually through the MyFutureJobs portal (except for exempted roles). |
| Legal Record |
No employment-related disputes. No convictions related to human trafficking or forced labour. |
Low and Semi-Skilled Foreign Workers
This ruling also applies to companies in hiring low- or semi-skilled foreign employees:
| Prerequisites | Details |
| Eligible Legal Identities |
Companies registered with SSM:
|
| Regulatory Compliance |
Registration with the Ministry of Home Affairs (MOHA) and the Department of Labour Peninsular Malaysia (JTKSM). No suspended accounts or unresolved compliance issues. |
| Business & Tax Compliance | Maintain valid business licenses and ensure all tax filings are current. |
| Quota Approval | Receive quota approval via the One-Stop Centre (OSC) |
| Legal Record |
No blacklisting (employment-related disputes or unpaid levy). No convictions related to human trafficking or forced labour. |
1.1 Company Paid-up Capital Requirements
Expatriates
The minimum paid-up capital depends on the company’s equity structure and, in some cases, the industry. This requirement applies to companies hiring expatriates under the Employment Pass (EP), as it is part of the ESD registration and EP eligibility process.
| Company Equity Structure | Paid-up Capital |
| 100% Malaysian-owned | RM250,000 |
| Joint Venture (min. 30% foreign equity) | RM350,000 |
| 100% Foreign-owned | RM500,000 |
| Foreign-owned companies (51% and above equity) operating in Wholesale, Retail, & Trade (WRT) sectors, or in unregulated services sub-sectors. | RM1,000,000 |
Low and Semi-Skilled Foreign Workers
Paid-up capital requirements do not apply to employers hiring low- or semi-skilled workers.
1.2 Company Sector Requirements
Expatriates
Hiring is limited to approved sectors requiring specialised expertise.
See our Employment Pass Guide in Malaysia for the complete list of approved sectors.
Low and Semi-Skilled Foreign Workers
For this worker category, the eligible primary industries include:
- Manufacturing
- Construction
- Agriculture
- Plantation
- Services (Examples such as Hospitality and Food & Beverages)
Registration with Government Bodies
Expatriates
Before hiring expatriates, employers must register with the relevant government bodies and comply with applicable regulatory requirements:
| Agency | Details |
| ESD (via Expats Gateway) | Main gateway for Employment Pass (EP), Professional Visit Pass (PVP), Residence Pass-Talent (RP‑T), and dependent passes. |
| Malaysia Digital Economy Corporation (MDEC) | Approves Foreign Knowledge Worker (FKW) positions for IT and digital roles before ESD submission. |
| Immigration | Issues the relevant passes after approvals. |
| Social Security Organisation (SOCSO) | Registration and contributions for all employees. |
| Department of Labour Peninsular Malaysia (JTKSM) | Provides approval letters and MyFutureJobs advertisement acknowledgements for EP and PVP (effective July 1, 2025). |
Low and Semi-Skilled Foreign Workers
Employers hiring low- or semi-skilled foreign workers must register with the relevant government bodies before applying for a work permit:
| Agency | Details |
| Ministry of Home Affairs (MOHA) | Register for approval to hire foreign workers. |
| JTKSM | Register for labour compliance(includes approvals for Foreign Domestic Helpers). |
| One Stop Centre (OSC) | Obtain quota approvals before recruitment. |
| SOCSO | Registration and contributions for all employees. |
| Compliance Check | Ensure no blacklisting, unpaid levies, or labour disputes. |
3. Compliance with Quota, Levy, and Labour Laws
Expatriates
Employers must secure position approval and comply with statutory and labour requirements before hiring expatriates.
| Process | Details |
| Expatriate Post Approval |
Requires approval from ESD (MDEC approval applies for IT and digital roles before submission to ESD). MDEC approves IT or digital roles first before submission to ESD. |
| Levy Exemption | Expatriates are exempt from the foreign worker levy, but all other statutory obligations apply. |
| Labour Law Compliance | Comply with the Employment Act, Minimum Wage Order, safety rules, and maintain proper documentation. |
For employers navigating expatriate post-approvals and compliance audits, Moore-Bzi guides ensure every requirement is met from day one.
Low and Semi-Skilled Foreign Workers
Employers must obtain quota approval, pay levies, and comply with labour laws before hiring low- or semi-skilled foreign workers.
| Process | Details |
| Quota Approval | Requires hiring quota approval from MOHA via OSC. |
| Levy Payment | Employers must pay the foreign worker levy based on sector and worker category. |
| Labour Law Compliance | Comply with the Employment Act, Minimum Wage Order, and safety rules, with proper documentation. |
| JTKSM Approval | Requires specific approval from JTKSM before applying for the Temporary Employment Pass (TEP). |
Need more clarity on the ESD process? Visit our Expatriate Services Division page for further details.
Application Process Overview
Obtaining a foreigner work permit in Malaysia involves several stages managed by different government agencies. A clear understanding of this process is essential for a smooth application.
A. Application Process for Expatriates
Below is a simplified workflow for expatriate work pass applications, focusing on the Employment Pass (EP) and Professional Visit Pass (PVP):
For Special Programmes application processes, please refer to their respective official website.
B. Application Process for Low- and Semi-Skilled Foreign Workers
For low- and semi-skilled foreign workers, the application process differs from that of expatriates. Below is a simplified overview of the workflow:
Supporting Documents Checklist
To apply for a work visa in Malaysia, both employers and employees must prepare a set of documents to support the Malaysian work permit application. These requirements vary by pass type and industry.
For a general overview of the required documents for expatriates applying for an Employment Pass (EP), refer to our article on the Employment Pass (EP).
Work Permit Fees and Processing Overview
The cost and timeline for obtaining a work permit in Malaysia depend on the pass type, validity, and nationality. These figures are approximate, inclusive of tax where applicable, and subject to updates:
| Pass Type | Estimated Fee (RM) | Average Processing Time | |
| Expatriates | Employment Pass (EP) | 2,160 (inc. SST) | 7–12 weeks |
| Professional Visit Pass (PVP) | 90 (inc. SST) | 1–2 weeks | |
| Special Programmes | Residence Pass-Talent (RP-T) | 5,500 – 5,940 (for 1 main applicant) | 8–12 weeks |
| Malaysia Digital Nomad Visa (DE Rantau) | 1,080 (for main applicant, inc. SST) | 4–6 weeks | |
| Low- & Semi-Skilled Foreign Workers | Temporary Employment Pass (TEP) | 825 – 2,035 (differs by sector, extra cost may apply) | 6–10 weeks |
| Foreign Domestic Helper (FDH) Visa | 1,580 – 18,000 (direct or agency hire, extra cost may apply) | 6–8 weeks | |
For the latest updates on processes and fees, refer to the official government portals or consult a professional work visa agent like Moore-Bzi.
Renewal, Cancellation, and Repatriation Procedures
An employer’s responsibility does not end with a successful application. Proper management of renewals, cancellations, and repatriation procedures is vital for ongoing compliance and avoiding penalties.
Work Pass Renewal
Ensuring the continuity of your foreign talent’s legal status in Malaysia requires proactive management of work pass renewals.
Expatriates
| Process | Details |
| Timely Application | Start 3–4 months before the expiry date via the Xpats Gateway portal. |
| Eligibility Check |
Company registration and quota must remain valid. The employee’s passport should have at least 12 months’ validity. |
| ePASS Issuance | Upon approval, a digital ePASS is issued (replacing the physical sticker). |
Low and Semi-Skilled Foreign Employees
| Process | Details |
| Timely Application | Submit renewal through the My E.G. Services Berhad (MYEG) website at least 2–3 months before the expiry date. |
| Medical Checkup | An annual medical examination is required for permit renewal. |
| For a Foreign Domestic Helper (FDH) visa, an additional eligibility check for employers may apply. | |
Work Permit Cancellation
A work permit must be cancelled when an employee resigns, is terminated, or permanently leaves Malaysia. Here is what you should know:
Expatriates
| Process | Details |
| Employer’s Responsibility |
Initiate cancellation through the ESD portal. Submit a formal cancellation letter, the employee’s passport with the original work permit endorsement, and proof of departure (if applicable). |
Low and Semi-Skilled Foreign Employees
| Process | Details |
| Employer’s Responsibility | Complete cancellation through the Immigration Department or MYEG. Required documents include the worker’s passport and a cancellation request letter. |
| Check Out Memo (COM) | Mandatory for FDH visa holders before departure to officially record their exit and prevent blacklisting. |
The cancellation process should occur within 1 week after the employee’s last day of notice or departure. Failure to cancel promptly can result in penalties for the employer, who may be held liable for the worker’s status.
Repatriation Procedures
When a foreign employee’s employment ends, the employer generally holds the responsibility for their safe and legal repatriation to their home country.
| Process | Details |
| Employer’s Role | Ensure the employee departs Malaysia legally with all proper exit stamps and departure records. |
| Financial Obligation | This often includes covering the cost of the flight ticket for repatriation and ensuring all outstanding wages, entitlements, and benefits due to the worker are settled. |
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Common Mistakes Employers Make
When managing the application process for a work visa in Malaysia, employers often encounter preventable pitfalls. Understanding these common mistakes is crucial to ensuring compliance and a smooth process. Here are several points to watch out for:
- Hiring Without Valid Permits
Only employ foreign workers after their work pass is issued, as hiring without one can lead to severe fines, imprisonment, and company blacklisting.
- Misclassifying Work Permit Types
Always verify the correct work pass category to avoid rejection, delays, or additional costs.
- Missing Renewal DeadlinesTrack permit renewals early to avoid overstaying, penalties, and business disruptions.
- Failing to Update Immigration on Role or Location Changes
Report and get approval for any job changes to avoid permit revocation and compliance breaches.
- Non-compliance with Labour Laws
Comply with employment laws and safety standards to avoid legal issues and permit approval risks.
- Lack of Transparency in Local Talent Search
Advertise jobs locally through the MyFutureJobs portal first to avoid permit rejection.
- Misunderstanding the ePASS Transition
Use the ePASS system promptly to avoid illegal employment issues.
Hire with Confidence: Partner with Moore-Bzi
Navigating the process of securing a foreigner work permit in Malaysia requires detailed planning and expert knowledge. Proactive compliance with work permit and visa processes is vital to avoid penalties, ensure smooth operations, and protect your company’s reputation.
Given these complexities and ever-changing regulations, partnering with an experienced expat visa consultant like Moore-Bzi ensures a smoother, compliant, and risk-free process for hiring foreign professionals.
For a seamless and successful hiring journey, secure a complimentary consultation with Moore-Bzi today.
FAQ
Can a foreigner apply for a work permit in Malaysia without a job offer?
No, a job offer from a locally registered company is mandatory before applying for any type of work permit in Malaysia. The employer acts as the sponsor and must initiate the application process on behalf of the foreign employee.
Can a foreign worker switch employers while holding a valid work permit?
No, a Malaysian work visa is typically tied to a specific employer and job role. To switch employers. To change employers, the current visa must be cancelled and a new application submitted by the new sponsoring company. Approval is subject to Immigration and ESD evaluation.
What happens if a foreign worker overstays after their permit expires?
Overstaying an employment visa in Malaysia is a serious immigration offence. It can lead to fines, detention, blacklisting, and even deportation. Employers may also face penalties for failing to ensure proper cancellation or renewal of the permit before expiration.
Are dependents of foreign workers allowed to work in Malaysia?
No, dependents of those holding a work visa in Malaysia, such as Employment Pass (EP) holders are not eligible to work. They will need to apply for an EP to do so.
Is it possible to convert a tourist visa to a work visa in Malaysia?
No, a tourist visa cannot be directly converted into a foreigner work permit in Malaysia. Employers must apply for a Visa With Reference (VDR) from abroad before bringing in the employee legally.