Legal Firm & Law Firm In Kuala Lumpur, Malaysia

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)       PROFESSIONAL VISIT PASS-

The pass is valid for six months and it enables the holder multiple entry into Malaysia during its effective period. The holder of the pass is not considered as the employee of the Malaysian Company.

Availability:

Representative Office, Foreign Owned Local Company, and any other company

Paid Up Capital Requirement:

Nil

Documents Required:

a)  Worker’s passport;

b) Worker’s certificate of educational qualification;

c) Worker’s resume;

d) Worker’s scope of work and responsibilities in Malaysia

e) Company’s profile

f) other supporting documents depend on the nature of business and engagement of the worker

ii)      EMPLOYEE PASS-

The pass is valid for up to 2 years, and the holder is considered as the employee of the Malaysian Company. 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 RM200,000.00

2)    partly foreign owned company: Paid up capital of RM350,000.00

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

Documents Required:

a)  Worker’s passport;

b) Worker’s certificate of educational qualification;

c) Worker’s resume;

d) Worker’s scope of work and responsibilities in Malaysia

e) Worker’s passport size photos x 4;

f)  Company’s profile

g) other supporting documents depend on the nature of business and engagement of the worker

(iii)  KEY EXPATRIATE 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.

Availability:

Foreign Owned Local Company, and any other company

Paid Up Capital Requirement:

1) Manufacturing companies with foreign paid-up capital of US$2 million and above:

•  Automatic approval is given for up to 10 expatriate posts, including five key posts.

•  Expatriates can be employed for up to a maximum of 10 years for executive posts, and five years for non-executive posts

2) Manufacturing companies with foreign paid-up capital of more than US$200,000 but less than US$2 million:

•  Automatic approval is given for up to five expatriate posts, including at least one key post.

•  Expatriates can be employed for up to a maximum 10 years for executive posts, and five years for non-executive posts

3) Manufacturing companies with foreign paid-up capital of less than US$200,000 will be considered for both key posts and time posts based on current guidelines. They are:

•  Key posts can be considered where the foreign paid-up capital is at least RM500,000. This amount, however, is only a guideline and the number of key posts allowed depends on the merits of each case.

Documents Required:

a)  Worker’s passport;

b) Worker’s certificate of educational qualification;

c) Worker’s resume;

d) Worker’s scope of work and responsibilities in Malaysia

e) Worker’s passport size photos x 4;

f)  Company’s profile

g) other supporting documents depend on the nature of business and engagement of the worker

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.

The guidelines on the employment of expatriate personnel are as follows:

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.

The guidelines on the employment of expatriate personnel are as follows:

•  Time posts can be considered for up to 10 years for executive posts that require professional qualifications and practical experience, and five years for non-executive posts that require technical skills and experience. For these posts, Malaysians must be trained to eventually take over the posts.

•  The number of key posts and time posts allowed depends on the merits of each case.

d) For Malaysian-owned manufacturing companies, approval for the employment of expatriates for technical posts, including R & D posts, will be given as requested.

An expatriate personnel who is transferred from one post to another within the same company will be required to obtain a new employment pass. His original employment pass will be amended to reflect the change in post. A new expatriate personnel replacing another must also obtain a fresh employment pass.

All employment passes are valid for the period approved for the post. However, for key post holders, employment passes will be issued up to five-year renewable basis except in circumstances where:

•        the validity of the expatriate’s passport is less than five years,

•        the expatriate’s employment contract is less than five years, or

•        the employer requires the services of the expatriate for less than five years.

source from MIDA

 

http://www.mida.gov.my/env3/index.php?page=employment-of-expatriate-personnel

Talk to a Lawyer Today
To learn how our legal team can help you with your complex issue, please send us an e-mail today.

By : L Y Lu & Co.