Malaysia offers exceptional business opportunities within Southeast Asia, thanks to its central position, economic resilience, and talented workforce. Companies planning expansion into this market will, of course, need clear guidance on work visa options to support their staffing plans.

The numbers speak volumes about Malaysia’s business potential. The country recorded GDP growth of 5.1% in 2024, outpacing many regional competitors and creating a magnet for international investment and talent.

Businesses employing international staff must fully understand the specifics of Malaysia’s work visa categories, application methods, and legal obligations. This guide offers a thorough examination of the primary visa types, employer duties, and practical considerations for companies looking to hire foreign workers in Malaysia.

The Role of Foreign Workers in Malaysia’s Economy

Foreign workers form a substantial portion of Malaysia’s workforce, adding value to multiple sectors across the economy. As of July 2023, migrants constituted approximately 3 million people or 8.9% of the country’s population and a significant 15.3% of its workforce. These workers predominantly fill low-skilled and semi-skilled positions.

The distribution of foreign workers across sectors shows clear patterns. By September 2024, of the 2.47 million active foreign workers in Malaysia, manufacturing employed the highest number at 771,327, followed by construction with 698,407 and services with 448,572. Plantation, agriculture, domestic helpers, mining, and quarrying filled the remaining positions.

Malaysia launched the Visa Liberalisation Plan in December 2023 to simplify entry procedures for business visitors and foreign talent. Additional regulations from January 2023 require employers to obtain prior approval and show efforts to recruit local talent before hiring foreigners. The 1:3 Internship Policy also encourages local talent development – for every one expatriate, three local interns must be hired.

Recent government actions show a careful calibration between economic needs and foreign workforce management. A hiring freeze took effect in 2024 when the percentage of foreign workers exceeded 15% of the national workforce.

Understanding Malaysia’s Work Visa Framework

Malaysia’s work visa regulations operate within a structured legal and administrative system. The Immigration Act 1959/63 provides the foundation, with the Ministry of Home Affairs holding overall responsibility for immigration matters. The Immigration Department serves as the central body for visa approval and issuance.

For companies employing foreign professionals, the Expatriate Services Division (ESD) plays the primary role in processing applications, particularly for Employment Pass (EP) and Professional Visit Pass (PVP) categories. Companies must register with the ESD to sponsor these visa types.

The Ministry of Human Resources (MoHR) manages quotas for Temporary Employment Pass applications, while sector-specific regulators may also participate in approvals.

• Malaysian Investment Development Authority (manufacturing and services)
• Malaysia Digital Economy Corporation (technology sector)
• Bank Negara Malaysia (finance, insurance, and banking)

Companies must identify the appropriate authorities based on their industry to meet all procedural requirements.

Malaysia Work Visa Main Categories

Employment Pass (EP)

The Employment Pass serves as the primary work visa for foreign professionals employed by Malaysian companies. This visa targets senior or technically skilled professionals, managers, executives, and technicians with specialised work experience.

The EP is divided into three categories based on salary and contract duration:

Category I: For expatriates in key positions earning a minimum monthly salary of RM 10,000 with employment contracts up to five years. This category allows holders to bring dependents and hire foreign domestic helpers.

Category II: For skilled foreign employees in managerial and professional roles with basic monthly salaries between RM 5,000 and RM 9,999, and contracts up to two years. Dependents are typically allowed.

Category III: For non-executive skilled positions with basic monthly salaries between RM 3,000 and RM 4,999 and contracts up to one year, renewable twice. Dependents are generally not permitted.

EP applications require relevant qualifications – typically a degree with 3+ years of experience, a diploma with 5+ years, or a technical certificate with 7+ years. Generally, the minimum age requirement is 27 years (23 for IT roles).

Temporary Employment Pass (TEP)

The Temporary Employment Pass caters to foreign workers in low-skilled or semi-skilled roles across specific sectors. The TEP applies primarily to manufacturing, construction, plantation, agriculture, and service industries.

Two main categories exist under the TEP framework:

1. General foreign workers: Eligibility depends on nationality, as only citizens from approved countries may work under this pass. Applicants typically must be aged 18-45 and undergo medical examinations to prove fitness for work.
2. Foreign domestic helpers: This pass applies only to female workers aged 21-45 from approved countries.

TEPs are valid for 12 months, but with extensions,

Professional Visit Pass (PVP)

The Professional Visit Pass enables short-term work for qualified expatriates in Malaysia, typically for up to 12 months, and it can be extended another 12 months at the discretion of immigration authorities.

PVP applicants must fit specific categories such as expertise transfer, research, training, volunteering, exhibiting, or guest lecturing. Unlike Employment Pass holders, PVP recipients cannot apply for Dependent Passes.

A notable PVP variant is the DE Rantau Digital Nomad Pass, which allows remote workers in the digital economy to live and work in Malaysia for 12 months, with renewal possibilities of a further 12 months.

Other Specialised Work-Related Passes

Beyond the main categories, Malaysia offers several other specialised work-related passes for specific circumstances:

Resident Pass-Talent (RP-T): This option targets highly skilled foreign professionals who have worked in Malaysia for at least three consecutive years and earn a minimum monthly salary of RM 15,000. The pass allows holders to work and live in Malaysia for up to 10 years with the flexibility to change employers without renewing the pass.

Malaysia My Second Home (MM2H) Programme: Designed for foreigners seeking to retire or live long-term in Malaysia, this programme offers renewable ten-year multiple-entry visas with different tiers (Silver, Gold, Platinum) based on fixed deposit requirements.

Malaysia Tech Entrepreneur Programme (MTEP): This initiative attracts foreign tech entrepreneurs to develop businesses in Malaysia through either a Professional Visit Pass (1-year validity) for new entrepreneurs or a Resident Pass (5-year validity) for established entrepreneurs in targeted sectors.

Employer Responsibilities and Compliance

Employers sponsoring work visas in Malaysia must fulfil substantial obligations before and during the employment of foreign staff.

Pre-application Requirements:

Companies sponsoring Employment Pass applications must register with the ESD and meet minimum paid-up capital requirements:

• 100% Malaysian-owned company: RM 250,000
• 30% foreign-owned company: RM 350,000
• 100% foreign-owned company: RM 500,000
• Foreign Owned (51%+ equity) in Wholesale, Retail, Trade (WRT): RM 1,000,000

During ESD registration, employers must provide company profiles, business operation details, and proof of financial stability.

Documentation Requirements

Standard documentation includes the applicant’s valid passport, employment contract, academic certificates, company sponsorship letters, detailed job descriptions, passport-sized photographs, and completed application forms.

Compliance Obligations

Employers must adhere to Malaysian labour laws, make statutory contributions to the Social Security Organisation (SOCSO), and provide mandatory insurance through the Foreign Worker Hospitalisation and Surgical Scheme (FWHS) and Foreign Worker Compensation Scheme (FWCS).

Non-compliance penalties include fines, hiring restrictions, visa cancellation, and possible deportation.

Read also: Foreign Professionals: Your Ultimate Guide to Employment Law Malaysia

Key Considerations for Employers

Processing Times

Visa application timeframes fluctuate considerably, typically spanning anywhere from 3 days to 7 weeks based on visa category and application quality. This variability creates planning challenges for businesses with time-sensitive hiring needs. This is where professional corporate service providers like InCorp Global offer significant advantages by managing application details, addressing potential issues before submission, and establishing communication channels with relevant authorities.

Fee Increases

From 1 September 2024, Malaysia implemented visa fee adjustments across multiple categories to support infrastructure improvements and expedited processing:

• Employment Pass: Increased to MYR 2,000 from MYR 800
• Professional Visit Pass: Rose to MYR 1,200 from MYR 800
• Dependent Pass: Increased to MYR 500 from MYR 450
• Long-Term Social Visit Pass: Now MYR 500, up from MYR 450

These fee increases coincide with processing time reductions – from five working days to three for Tier 1, Tier 2, and Critical Sector companies. The Immigration Department indicates these adjustments will fund system enhancements and additional staff resources. For context, similar visa categories in Singapore and Hong Kong typically can cost between USD 200-450, positioning Malaysia’s fees within the regional competitive range despite the increases.

Common Work Visa Challenges and How InCorp Provides Solutions

Sponsoring work visas in Malaysia presents multiple challenges that professional corporate service providers like InCorp can effectively address:

Low Approval Rates: With the manufacturing sector reporting only 0.55% approval for foreign labour applications, InCorp Global’s expertise helps companies submit compelling applications that clearly demonstrate genuine need and meet all requirements.

Evolving Regulations: Malaysian immigration and labour laws change frequently. InCorp Global maintains current knowledge of regulatory shifts and proactively adapts client applications to meet new standards.

Sector-Specific Restrictions: Industries like IT and healthcare face high bars to visa acceptance. InCorp’s specialists understand these nuances and develop sector-appropriate strategies.

Documentation Management: The extensive paperwork required for background checks, medical reports, and other verifications becomes manageable with InCorp Global’s systematic approach and document preparation services.

Timeframe Optimisation: InCorp Global’s established relationships with relevant authorities and precise application preparation help minimise processing delays that could otherwise disrupt hiring schedules.

Financial Planning: InCorp Global provides transparent cost forecasting for all visa expenses, including application fees, levies, and insurance requirements.

Where to Next with InCorp Global Malaysia

Malaysia’s work visa system provides clear, structured pathways for foreign talent acquisition, but requires expert knowledge of visa categories, regulatory compliance, and processing nuances. With significant financial implications and potential business disruption at stake, professional guidance offers clear advantages.

The InCorp Global Malaysia team provides end-to-end work visa support, from initial category selection through document preparation and submission to post-approval compliance. Our specialists maintain current knowledge of regulatory changes and established relationships with relevant authorities, significantly improving approval prospects. Contact InCorp Global Malaysia today for a consultation on your specific work visa needs and discover how our expert team can reduce administrative burden while maximising your foreign talent acquisition success in Malaysia.

I saw varying ranges for this, but this seemed to be the common one. Please check though!

please check I have the right source for this.

These are estimates based on research, please remove if incorrect in your experience. It is a good section to have though, so hopefully we can keep it.

Key Considerations for Employers

Processing Times

Visa application timeframes fluctuate considerably, typically spanning anywhere from 3 days to 7 weeks based on visa category and application quality. This variability creates planning challenges for businesses with time-sensitive hiring needs. This is where professional corporate service providers like InCorp Global offer significant advantages by managing application details, addressing potential issues before submission, and establishing communication channels with relevant authorities.

Fee Increases

From 1 September 2024, Malaysia implemented visa fee adjustments across multiple categories to support infrastructure improvements and expedited processing:

• Employment Pass: Increased to MYR 2,000 from MYR 800
• Professional Visit Pass: Rose to MYR 1,200 from MYR 800
• Dependent Pass: Increased to MYR 500 from MYR 450
• Long-Term Social Visit Pass: Now MYR 500, up from MYR 450

These fee increases coincide with processing time reductions – from five working days to three for Tier 1, Tier 2, and Critical Sector companies. The Immigration Department indicates these adjustments will fund system enhancements and additional staff resources. For context, similar visa categories in Singapore and Hong Kong typically can cost between USD 200-450, positioning Malaysia’s fees within the regional competitive range despite the increases.

Common Work Visa Challenges and How InCorp Provides Solutions

Sponsoring work visas in Malaysia presents multiple challenges that professional corporate service providers like InCorp can effectively address:

Low Approval Rates: With the manufacturing sector reporting only 0.55% approval for foreign labour applications, InCorp Global’s expertise helps companies submit compelling applications that clearly demonstrate genuine need and meet all requirements.

Evolving Regulations: Malaysian immigration and labour laws change frequently. InCorp Global maintains current knowledge of regulatory shifts and proactively adapts client applications to meet new standards.

Sector-Specific Restrictions: Industries like IT and healthcare face high bars to visa acceptance. InCorp’s specialists understand these nuances and develop sector-appropriate strategies.

Documentation Management: The extensive paperwork required for background checks, medical reports, and other verifications becomes manageable with InCorp Global’s systematic approach and document preparation services.

Timeframe Optimisation: InCorp Global’s established relationships with relevant authorities and precise application preparation help minimise processing delays that could otherwise disrupt hiring schedules.

Financial Planning: InCorp Global provides transparent cost forecasting for all visa expenses, including application fees, levies, and insurance requirements.

Where to Next with InCorp Global Malaysia

Malaysia’s work visa system provides clear, structured pathways for foreign talent acquisition, but requires expert knowledge of visa categories, regulatory compliance, and processing nuances. With significant financial implications and potential business disruption at stake, professional guidance offers clear advantages.

The InCorp Global Malaysia team provides end-to-end work visa support, from initial category selection through document preparation and submission to post-approval compliance. Our specialists maintain current knowledge of regulatory changes and established relationships with relevant authorities, significantly improving approval prospects. Contact InCorp Global Malaysia today for a consultation on your specific work visa needs and discover how our expert team can reduce administrative burden while maximising your foreign talent acquisition success in Malaysia.

I saw varying ranges for this, but this seemed to be the common one. Please check though!

please check I have the right source for this.

These are estimates based on research, please remove if incorrect in your experience. It is a good section to have though, so hopefully we can keep it.

About In.Corp Global (M) Sdn. Bhd.

In.Corp Global Malaysia, an Ascentium Company, is a trusted corporate service provider offering end-to-end business solutions, including company incorporation, compliance, accounting, taxation, and ESG advisory. With deep local expertise and a strong regional network, we help businesses navigate Malaysia’s evolving regulatory landscape. Contact us to learn more.