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When traveling to Malaysia, your nationality and the types of activities you will conduct during your trip will determine whether you may travel lawfully as a business visitor or if work authorization will be required. Please seek advice from your immigration counsel if you are uncertain about the specific types of activities that constitute business or work.
As a business visitor to Malaysia, you may engage in the activities below. While this list is not exhaustive and other activities could qualify as business, you may:
All foreign nationals, including visa-waivered nationals, who intend to perform short-term business activities in Malaysia are issued a Social Visit Pass (SVP) upon arrival, which defines permissible activities for the business visitor.
Nationals of the European Union, the United States and many other select countries are eligible for a visa waiver and are not required to obtain a visa to enter and conduct business activities in Malaysia.
Additionally, Malaysia is a member of the Asia-Pacific Economic Cooperation (APEC), and foreign nationals in possession of a valid APEC Business Travel Card (ABTC) endorsed with “Valid for travel to MYS” are eligible to enter Malaysia on visa-waivered status.
Foreign nationals who are not eligible for a visa waiver must obtain an Entry Visa from a Malaysian Embassy or Consulate, an eVisa from the online system or an eNTRI Note from the Electronic Travel Registration & Information (eNTRI) online system prior to traveling, as applicable depending on nationality. Additionally, select nationals are eligible to obtain a Visa on Arrival at the port of entry. Please obtain an individual assessment before traveling to determine the correct category for your nationality and circumstances.
The activities below, whether paid or unpaid, generally constitute work under Malaysian law. This list is not exhaustive, and many other professional activities are considered work in Malaysia, even if conducted for a short duration.
The requirements for work authorization depend on your qualifications, on your salary, on your work location and on the nature and duration of your work. The most common types of work authorization for Malaysia are:
There are no nationalities eligible for an exemption to work authorization requirements in Malaysia.
Inevitably, the legal and strategic considerations impacting visa selection, as well as visa waiver and work authorization eligibility, entail the careful consideration of many factors. We recommend that you consult with your immigration counsel before taking any course of action.
IMPACT – HIGH
What is the change? Effective immediately, Sarawak state has lifted the moratorium on work permit applications for oil and gas companies.
What does the change mean? Although the freeze affecting work permit applications has been lifted, applications by Petronas (Malaysia’s national oil and gas corporation) and its subsidiaries can only be filed at Sarawak State Immigration Headquarters in Kuching.
Background: The Immigration Department in Sarawak has confirmed that the week-long moratorium on work permit applications has been lifted and that they have resumed processing work permit applications for oil and gas companies.
BAL Analysis: Applications from Petronas are still being scrutinized more closely, and they must now be submitted in Kuching, regardless of whether they are short-term or long-term work permits.
This alert has been provided by the BAL Global Practice group and our network provider located in Malaysia. For additional information, please contact your BAL attorney.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Effective immediately, Sarawak state has put all work permit applications for oil and gas companies on hold until further notice.
What does the change mean? The freeze affects all work permit applications for all oil and gas companies in Sarawak, including new and renewal applications as well as applications that have been approved but not yet endorsed. Employees with valid work permits whose passports are endorsed with a permit sticker may continue to work.
Background: On Monday, all Immigration Department offices in Sarawak froze new work permit applications for Petronas, Malaysia’s national oil and gas corporation. By Tuesday afternoon, Sarawak state authorities extended the freeze to all oil and gas companies. Immigration Department offices in Sarawak are not accepting any oil and gas applications until they receive further direction from state authorities. The moratorium is reported to be a response to Petronas’ recent restructuring, which the Sarawak government asserts disproportionately affected Sarawakian workers.
BAL Analysis: Oil and gas industry officials are set to meet with the head of the Sarawak Immigration Department early next week. BAL will report on the outcome of those talks as information becomes available.
IMPACT – MEDIUM
What is the change? Malaysia’s Expatriate Services Division is now strictly requiring that all employment pass applicants present their approval letter upon entering the country for work.
What does the change mean? Foreign employees and their dependents are advised not to travel to Malaysia until the first stage of the applications has been completed and they have received their approval letters.
Background: Effective Aug. 1, foreign nationals entering Malaysia for employment must show their approval letter issued by the Expatriate Services Division. Previously, foreign nationals could enter Malaysia and wait for the application to be approved while in-country. Under the new process, foreign employees and dependents must wait for their approval letters to be issued before traveling to Malaysia, and foreign nationals from controlled countries must also wait to obtain a visa with reference.
Expatriate employees applying to change employers may complete the process in-country, but if they leave the country and their existing employment pass expires, the Expatriate Services Division may require them to remain abroad until the approval letter is granted.
BAL Analysis: Companies with MSC and ICT status should prepare for a similar change, as the Malaysia Digital Economy Corporation (MDEC) is expected to follow suit and implement this rule as well. We are monitoring these developments and will provide updates as they become available.
What is the change? Starting Aug. 1, authorities will start implementing new policies and reinforcing existing regulations for work passes, including all categories of employment passes and professional visit passes.
What does the change mean? Notably, employers will no longer be able to include allowances when calculating the minimum salary for work permit eligibility. In the past, this was allowed on a discretionary basis. The rules also add stricter requirements for certain nationalities applying under the new employment permit category III.
Background: The new rules affect foreign workers applying for regular employment passes (category I), employment passes for a contract term of less than two years and meeting the minimum salary (category II), and employment passes for foreign nationals hired for a limited duration and earning less than the normal wage (category III, created last year).
The summary of new regulations is as follows:
Categories I & II
Category III
Professional Visit Pass
BAL Analysis: Although some of the policies have been in place for some time, the authorities are emphasizing strict reinforcement of all rules moving forward.
What is the change? Beginning June 1, MYXPats Centre will introduce application fees for Employment Pass, Dependant Pass and Social Visit Pass applications submitted online.
What does the change mean? The new government fees are in addition to existing filing fees charged by Malaysia’s Immigration Department.
Background: MYXpats Centre announced the following application charges:
The Centre indicated that the application fees are being introduced to improve services and to maintain processing times. According to the Centre, since it took over processing of pass applications in 2015, it has approved 74 percent of Employment Pass applications within five days.
BAL Analysis: Employers and foreign nationals should budget for the new government fees.
What is the change? All non-MSC companies must submit 2016 foreign knowledge worker projections as soon as possible to avoid delays in hiring or renewals next year.
What does the change mean? Non-MSC companies are advised to file their FKW projections as soon as possible in order to avoid the end-of-year crush of applications. Projections must be submitted via the Expatriate Services Division online portal.
Background: FKW projections should be provided for four categories of workers: high-level managers, technical experts, mid-level managers and entry level/junior managers. The projections must include the expected number of new hires and renewals of existing employment passes in each category. FKW projections do not need to include estimates of the number of professional visit pass applications that a company may submit in 2016.
Companies in the information and communication technology industry holding MSC status are not required to submit the FKW projection. While the projections have been required in the past, this year marks the first year that they must be submitted through the Expatriate Services Division online portal.
BAL Analysis: Non-MSC companies are required to file FKW projections before they are permitted to file new or renewal employment pass applications. Affected companies should submit their projections as soon as possible in order to avoid delays. Contact your BAL professional if you are in need of assistance or have any questions.
What is the change? Malaysia will introduce a new employment pass category this month.
What does the change mean? Employment Pass (Category III) will be available to foreign nationals working on contracts of 12 months or less and with monthly salaries ranging from 2,500 to 4,999 Malaysian ringgits (about US$665 to $1,330).
Background: Employment Pass (Category I) is Malaysia’s regular work permit, while Employment Pass (Category II) is reserved for foreign graduates of Malaysian universities employed by reputable firms in Malaysia. Category III passes will allow some employers to hire foreign nationals for a limited duration and pay them below the normal wage minimum. The July 1 announcement of a third category was unexpected, and officials say the passes will be available beginning July 15.
To file an application in Category III, companies will be required to secure a letter exempting them from paying the normal minimum salary of RM 5,000 per month. The exemption letter must be obtained from either the appropriate monitoring agency or, if the applicant works in an unregulated economic sector, the Ministry of Home Affairs. The letters are then filed with the rest of the application via the Expatriate Services Division online portal.
Holders of Category III passes will not be permitted to sponsor dependents or hire foreign housekeepers. The passes are subject to review and renewable twice. For more information, visit Malaysia’s Expatriate Services Division website.
BAL Analysis: The change was announced as part of a “reclassification” of Employment Pass categories. BAL will update clients on procedures to apply for the new employment passes as information becomes available.
What is the change? Malaysia’s Multimedia Development Corporation has announced its holiday schedule for the Hari Raya Aidil Fitri (Eid al-Fitr) holiday in July.
What does the change mean? To avoid processing delays, applicants must take note of the scheduled office closures and submission cutoff dates.
Background: In celebration of the holiday immediately following the month of Ramadan, the e-Xpats Centre will be closed July 16-19, resuming work July 20. MDeC has announced the following deadlines for Stage 1 and 2 applications prior to the holiday:
Stage 2 applications received from June 19 onward will be processed without original passports for security reasons. Passport submission for Stage 2 processing will resume as normal on July 20. Applications submitted without an original passport must contain copies of the following pages of an applicant’s passport:
Note that the Stage 2 submission cutoff date only applies to MSC-status companies. The ICT-status companies may continue to file applications directly to the Immigration Unit as normal.
BAL Analysis: In order to avoid delays in processing time, employers are encouraged to submit applications according to the cutoff dates provided by the authorities.
What is the change? Malaysia’s launch of the Malaysia Expatriate Talent Service Centre (MYXpats Centre) to take over Employment Pass applications is expected soon.
What does the change mean? The government is expected to release an announcement on the official launch date. In the meantime, all Employment Pass and related applications will continue to be processed by the immigration office in Putrajaya until further notice.
Background: Currently, company registration and online submission of Employment Passes and related passes are handled by the Expatriate Services Division in Putrajaya. Once implemented, MYXpats Centre will handle Employment Pass submissions and related matters. ESD will continue to manage company registrations.
MYXpats Centre will be jointly run by the Immigration Department and Talent Corporation Malaysia, and falls under the Ministry of Home Affairs.
BAL Analysis: The government is expected to provide guidance to employers on the launch of MYXpats Centre and any new procedures for submitting Employment Pass applications. BAL is following these developments and will update clients when information is available.