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Malaysia Employment Pass Application

Employment Pass (EP) is a work pass that enables an expatriate to take up employment with an organisation in Malaysia. The pass is subject to the contract of employment (up to 60 months). The Expatriate Committee (EC) or relevant authorities must give approval for the foreign talent to fill a position before the issuance of an expatriate Employment Pass can be made by the Immigration Department of Malaysia.

Expatriates may only work for the company named in the Employment Pass. If an EP holder change employer, the EP holder will needs to resubmit a new application for a new EP.

There are currently restrictions on the number of foreign workers a Malaysian company can employ. If any Malaysian company intends to hire foreigners, then the Company will have to prove to the government that the potential employee and the position are of vital importance and the job cannot be filled by a local. Quota must be requested from the immigration department before a Company can proceed with a work pass application.

A company must check to see if it is eligible to apply for an Expatriate Employment Pass. The key requirements are outlined as follows:

Share Capital Requirement

EQUITY	PAID-UP CAPITAL
100% Local Owned	RM250,000
Joint venture (minimum foreign equity is 30%)	RM350,000
100% Foreign Owned	RM500,000
Foreign-owned companies (foreign equity at 51% and above) operating in the Wholesale, Retail and Trade (WRT) sectors (mandatory requirement to submit valid WRT license, if applicable). Please refer to the Ministry of Domestic Trade, Co-operatives and Consumerism for WRT license application guideline	RM1,000,000
Foreign-owned companies (foreign equity at 51% and above) involved in the sub sectors on unregulated services are required to refer to the Services Industry Division, Ministry of Domestic Trade, Co-operatives and Consumerism on the application guideline to obtain approval.	RM1,000,000

Types of Employment Pass and Minimum Salaries Requirements

There are three types of employment pass which are as follows

– Employment Pass (EP) – for applicants earning a fixed monthly salary of at least RM 10,000 and Applicant must have an employment contract valid for a minimum of 5 years

– Employment Pass – Category II (EPII) – for applicants earning a fixed monthly salary of at least RM 5,000 and up to RM 9,999 and Applicant has an employment contact valid for 2 years

– Employment Pass – Category III (EPIII) – for applicants earning a fixed monthly salary of between RM3,000 to RM4,999 and contract period not exceeding 12 months.

Authority Approval Required

Companies who intend to apply for Category III will be required to submit a letter to seek exemption from the minimum salary requirement of RM5,000 from the relevant governing authorities.

There are several Agencies that are responsible for approving and supporting expatriate posts in the relevant sectors. Companies are facilitated according to their respective industry sectors.

Companies that are regulated by an Approving Agency need to submit an approval letter from the relevant Agency for each Employment Pass application (Category I, II and III).

Companies in sectors under the purview of a specific Regulatory Body are required to submit a supporting letter from the relevant Body for each Employment Pass application (Category I, II and III).

Unregulated Sectors – Companies in unregulated sectors (neither under the purview of an Approving Agency or Regulatory Body) are required to submit a letter to the Ministry of Home Affairs to seek an exemption from the minimum salary requirement of RM5,000.

For more information, please see Approvals Required For Employment Pass Application

Eligible Criteria For Employment Pass Application

For Expatriate(s)/Knowledge/Skilled Worker(s)

Degree and above, with at least 3 years’ experience in relevant field
Diploma, with at least 5 years’ experience in relevant field
Technical Certificate or equivalent, with at least 7 years’ experience in relevant field

For Shareholder(s)

Shareholder(s) must have minimum 30% equity in the company; AND
Must be SSM-registered Director of the company AND/OR holds key position in the company

Cooling-Off Period Requirement

EP III holders who has renewed 2 times or 3 years consecutively MUST leave the country and serve 3 months cooling-period to be able to apply for EP III again. Exemption is given for conversion of EP III to EP I/II
EP III holders who are changing employers MUST leave the country and serve 3 months cooling-period to be able to apply for EP III with different employer

Sectors NOT allowed to apply for Employment Pass

Supermarket / mini market (less than 3,000 square sales floor area)
Provision shop / general vendor
Convenience store (that opens for business 24 hours)
News agent and miscellaneous goods store
Medical hall (inclined towards traditional alternative medicines plus general dry foodstuff)
Fuel station with convenience store
Permanent wet market store
Permanent pavement store
National Strategic Interest
Textile, restaurant (non exclusive), bistro, jewellery shops
Others

Information Required

Please ensure you have all the required documents below before proceeding with registration:

Copy of all company director’s MyKad or Passport copy.
Company Profile
Copy of Company’s Phone Bill
Tenancy Agreement/Sales & Purchase Agreement (S&P)
e-SSM Printout
SSM Form 9
SSM Form 24
SSM Form 49
Latest Financial Report
Copy of Local Authorities License – Lesen Pihak Berkuasa Tempatan (PBT) (if applicable) (such as Business Premises License)
Other business licenses (Refer to Annex A, or any other supporting documents)
Exemption letter from minimum salary requirement of RM5,000 (applicable to companies that intend to apply for Employment Pass (Category III) only)
Other documents specified upon request

*Note: Form 9, Form 24 and Form 49 must be certified true copied by the Companies Commission of Malaysia.

Time Line

Following the submission of all required documents, it takes fourteen (14) working days for the process to be completed. The company registration process flow is as follows:

Step 1: Create account (register online)

Step 2: Submit application online

Step 3: Application in process by Immigration

Step 4: Status notification

Step 5: Company activation

The processing time may be extended to 3 months or more due to incomplete applications or additional inspection requirement.