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Q&A on Application of Employment Pass in Malaysia

Answer
Q:
How can an expatriate apply for an Employment Pass?
A:
An expatriate cannot directly apply for their employment pass. The company who intends to hire the expatriate must apply for the employment pass.

Q:
What are the requirements for applicants to apply for the Employment Pass in Malaysia?
A:
  1. For Expatriate/Knowledge/Skilled Worker
    (1)
    Possesses a degree or higher coupled with a minimum of a3 years’ experience in the relevant sector;
    (2)
    Possesses a Diploma, with a minimum of 5 years’ experience in the relevant sector; or
    (3)
    Possesses a Technical Certificate or equivalent, alongside a minimum of 7 years’ experience in the relevant sector.
  2. For Shareholder
    (1)
    Shareholder(s) are mandated to hold at least 30% equity in the company; and
    (2)
    Must serve as company director and/or holds a significant position within the company.
Q:
What will be the maximum duration granted for Employment Pass in Malaysia?
A:
Up to 60 months, depending on the contract of employment and upon discretion of the Expatriate Committee.

Q:
Does the company need to first hire local employee before it can submit application for Employment Pass?
A: While not explicitly outlined in the guidebook, the company was encouraged to prioritise local hiring or demonstrate efforts to hire locally before seeking to employ foreign workers.

Q:
What is the share capital requirement a company must meet before applying for Employment Pass?
A: For registration with the Expatriate Services Division (ESD), the company need to fulfill the minimum paid-up capital requirements as follows:

Equity

Paid-Up Capital

100% Local Owned

RM250,000

Joint Venture (minimum foreign equity of 30%)

RM350,000

100% Foreign Owned

RM500,000

Foreign-owned companies (at least 51% foreign equity) operating in the Wholesale, Retail and Trade (WRT) sectors; or

Foreign-owned companies (at least 51% foreign equity)  engaged in unregulated services sub-sectors

RM1,000,000


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