Who Needs a Work Permit in Malaysia
Any foreign national intending to engage in employment in Malaysia is required to obtain a work permit. This mandate applies to all sectors and job roles, encompassing both skilled and unskilled positions. Employers must secure the appropriate work permit for each international employee before they commence work, ensuring adherence to Malaysian immigration laws.
Types of Work Visas in Malaysia
Malaysia offers several categories of work visas, each tailored to specific employment needs and durations. Understanding these options is crucial for employers to determine the most suitable permit for their prospective international hires.
| Visa Type | Description |
| Employment Pass | Issued to foreign nationals employed in highly skilled positions, such as technical or managerial roles, typically valid for 1 to 5 years and renewable. |
| Temporary Employment Pass | Granted for employment not exceeding two years, commonly for unskilled or semi-skilled workers in sectors like manufacturing, construction, and agriculture. |
| Professional Visit Pass | Designed for foreign professionals engaged in short-term assignments or projects in Malaysia, usually valid for up to 12 months. |
Common Hiring Scenarios for Malaysia
When hiring talent in Malaysia, employers typically choose one of three pathways depending on the role, duration, & legal requirements. Below are the most common models.
Use Case 1: Sponsoring a Foreign Employee via Work Permit or Visa
This is the most common route for companies hiring full-time foreign talent in Malaysia. To sponsor this visa, an employer (or Playroll as the Employer of Record) must have a registered legal entity in-country and issue a compliant offer of employment.
Key Employer Considerations:
- Sponsorship is required — contractors or freelancers cannot apply under this visa.
- Employees must remain in the approved work location unless authorized to relocate or change employers.
- Processing timelines vary (approximately 2–3 months), depending on the consulate or embassy.
This is best for: Long-term roles with in-office or hybrid presence in Malaysia.
Use Case 2: Hiring a Foreign Contractor in Malaysia
Independent professionals in Malaysia can legally work with international clients without employer sponsorship, but must comply with local tax registration and reporting laws.
With Playroll’s Contractor Management solution, you can:
- Draft fully compliant local contractor agreements.
- Automate contractor invoicing and cross-border payments, in West African CFA Franc (XOF) or USD.
- Mitigate risk of permanent establishment and contractor misclassification.
This is best for: Freelancers, consultants or project-based roles, especially if the worker already lives in Malaysia.
Use Case 3: Relocating an Existing Employee to Malaysia
Transferring an existing team member to Malaysia? You’ll still need to navigate the same visa and payroll setup process. Even if the employee works for you elsewhere, a local employer of record is required to stay compliant.
EOR’s, like Playroll, handle all local steps, including:
- Work permit sponsorship and immigration paperwork,
- Registration with local authorities and payroll systems,
- Enrollment in mandatory benefits and statutory schemes.
This is best for: Internal transfers or remote-first companies looking to expand into Africa, or talent retention offerings for global mobility programs.
Requirements for a Work Permit in Malaysia
Securing a work permit in Malaysia necessitates meeting specific criteria set by the immigration authorities. Employers must ensure both the company and the prospective employee fulfill these prerequisites to facilitate a successful application.
- Employer Eligibility: Employers must obtain approval from the relevant regulatory bodies, such as the Expatriate Committee, to hire foreign workers. This involves demonstrating the necessity of hiring international talent for the specific role.
- Employee Qualifications: The foreign employee should possess the requisite qualifications and experience pertinent to the job position. For instance, an Employment Pass typically requires a minimum monthly salary of RM3,000.
- Age Restrictions: For Temporary Employment Passes, employees should generally be between 18 and 45 years of age.
- Health Requirements: Prospective employees must undergo a medical examination and be certified fit by a registered clinic.
- Passport Validity: The employee's passport must be valid for at least 18 months from the date of application.
Malaysia Work Permit Application Process
- Step 1: Expatriate Post Approval: Employers must apply for approval to hire foreign talent by submitting an application to the relevant authority.
- Step 2: Work Permit Application: Submit the work permit application to the Immigration Department with necessary documents.
- Step 3: Visa with Reference (VDR): Upon approval, a VDR is issued, enabling the employee to enter Malaysia.
- Step 4: Entry and Endorsement: After entering Malaysia, the employee reports to the Immigration Department to endorse the work permit.
Process for Visa Sponsorship in Malaysia
Employers act as sponsors for foreign employees, bearing responsibility for work permit applications and ensuring compliance. This includes obtaining approvals, submitting documentation, and covering fees. Employers must ensure that employees adhere to permit terms to avoid penalties.
What Are the Fees for a Work Permit or Visa in Malaysia
The fees associated with obtaining a work permit in Malaysia vary based on permit type and sector.
| Visa Type | Application Fee |
| Employment Pass (EP) | RM200 – RM300 (approximately $45 – $70) |
| Temporary Employment Pass (TEP) | Varies by sector; e.g., Manufacturing levy is RM1,850 |
| Professional Visit Pass | Fees vary; consult the latest fee schedule |
Note: The above fees reflect government fees for work permits and visas in Malaysia, and is not associated with Playroll's fees for visa support services. Please contact our team for detailed information on our visa support services.
Processing Time for a Work Permit or Visa in Malaysia
The processing time generally ranges from 7 to 12 weeks, depending on the permit type and completeness of the application. This includes employer approvals and visa issuance processes.
Work Permit Renewal Periods in Malaysia
Employment Pass renewals align with the employment contract, up to 60 months. Initiate renewals 3 months before expiration.
Visa Requirements for Digital Nomads in Malaysia
Currently, Malaysia does not have a specific digital nomad visa. Remote work on a Tourist Visa is not legally permitted.
Common Challenges and Tips for Employers Hiring in Malaysia
- Regulatory Requirements: Stay informed on immigration laws.
- Processing Delays: Ensure all documentation is complete and accurate to avoid delays in processing work permits.
- Cultural Integration: Support international employees with cultural orientation and assistance to help them adapt to the local environment.
- Cost Considerations: Budget for application fees, levies, and other related costs when hiring foreign employees.
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