Condition to Apply for Employment Pass in Malaysia

Working abroad has become increasingly common today. For foreigners planning to work in Malaysia, one of the first questions is:

Do I need a permit to work legally in Malaysia?”

The answer is YES. Foreign nationals must apply for an Employment Pass (EP) to work legally in Malaysia. This pass allows qualified professionals such as managers, executives, and skilled workers to live and work in Malaysia under a Malaysian company.

Family members may also apply for a Dependent Pass to stay in Malaysia with the Employment Pass holder. However, Dependent Pass holders are generally not allowed to work or earn income in Malaysia unless they obtain separate approval. 

Things to Know about Employment Pass 

Expatriates are only allowed to work for the company stated in their Employment Pass. If they change employers, they must apply for a new pass.

Malaysian companies are subject to regulations that limit the hiring of foreign expatriates. Employers must demonstrate that the foreign candidate is essential for the role and that the position cannot be filled by local talent.

To apply for an Employment Pass, both the company and the applicant must meet certain eligibility requirements as outlined below.

The minimum requirements to apply for an expatriate post are as follows:  

• Degree and above, with at least 3 years’ experience in the relevant field;  
• Diploma, with at least 5 years’ experience in the relevant field;   

• Technical Certificate or equivalent, with at least 7 years’ experience in the relevant field; 
• Applicant must work in a managerial, executive or technical position which requires specific skills;  
• Applicant must meet the required salary requirements; and   
• Applicant must not take up work in a sector which is considered restricted by the Government of Malaysia.  

If the expatriate is only to act as a shareholder, these are the requirements: 

• Shareholder(s) must have a minimum of 30% equity in the company; and 
• Must be a SSM-registered Director of the company and/or holds a key position in the company. 

Companies regulated by an Approving Agency or Regulatory Body need to submit an approval letter from the relevant Approving Agency/ Regulatory body for all Employment Pass categories. As these Approving Agencies/ Regulatory Bodies regulate companies in specific economic sectors, they are as such responsible for approving and supporting expatriate posts in the relevant sectors. 

*Note: Companies intending to apply for EP Category III must first receive approval from the Ministry of Home Affairs to seek exemption from the minimum salary requirement of RM5,000 before making an application.

Authority Approval and Licensing Requirement

*Note: Companies are reminded that it is their responsibility to ensure that they have all the valid required license(s) and approval(s) for company registration purposes. 

Depending on the Applicant’s profession, the Applicant’s employer has to apply for the Expatriate Post at one of the following government-approved agencies: 

• Malaysian Investment Development Authority (MIDA) for the sectors of manufacturing and services. 
• Malaysia Digital Economy Corporation (MDEC) for the technology sector. 
• Central Bank of Malaysia (BNM) for the sectors of finance, insurance, and banking. 
• Bioeconomy Corporation for the sector of biotechnology and bio-based industry. 
• Securities Commission (SC) for the sector of securities and futures market. 

• Expatriate Committee (EC) (operating under the Immigration Department of Malaysia) for sectors other than those mentioned above. 

Once the Expatriate Committee or another authorized agency has approved the employer’s application, the employer can proceed to apply the Employment Pass. 

Sectors Not Allowed to Apply for Employment Pass 

The following sectors are restricted from applying for employment pass under the Guidelines on Foreign Participation in the Distributive Trade Services Malaysia: 

• Supermarket / mini market (less than 3,000 square sales floor area) 
• Provision shop / general vendor 
• Convenience store (that opens for business for 24 hours) 
• News agent and miscellaneous goods store 
• Medical hall (inclined towards traditional alternative medicines plus general dry foodstuff) 
• Fuel station with convenience store 
• Fuel station without convenience store  
• Permanent wet market store 
• Permanent pavement store 
• National strategic interest 
• Textile, restaurant (non-exclusive), bistro, jewellery shops 
• Others 

Different Types of Additional Passes in Malaysia

In addition to the Employment Pass, Malaysia offers several types of additional passes to support foreign individuals and their families for various purposes such as long-term stay, business activities, and professional engagements.

Below is a comprehensive guide to the key types of additional passes available:

---

1. Dependent Pass

The Dependent Pass allows foreigners to bring their family members to stay in Malaysia while they are working or studying.

Who is eligible?

Applicants must fall under one of the following:

• Employment Pass Category 1 holders (key positions, minimum salary RM10,000)
• Employment Pass Category 2 holders (managerial/professional roles, salary RM5,000–RM9,999)
• Student Pass holders pursuing Master’s or PhD in Malaysia

Individuals holding Employment Pass Category 3, Temporary Employment Pass, or Professional Visit Pass are not eligible to apply for a Dependent Pass.

Eligible family members:

• Legal spouse
• Children below 21 years old (biological, adopted, or stepchildren)
• Disabled children (no age limit, subject to dependency)

For extended family members such as parents, parents-in-law, unmarried partners, or children above 21, a Long-Term Social Visit Pass (LTSVP) is required.

Important notes:

• The validity follows the main pass holder
• Dependents are not allowed to work unless the pass is converted to an Employment Pass

---

2. Long-Term Social Visit Pass (LTSVP)

The Long-Term Social Visit Pass is for foreigners who wish to stay in Malaysia for more than six (6) months.

Who is eligible?

• Spouse of a Malaysian citizen
• Family members of Employment Pass holders
• Children above 21 years old (unmarried)
• Parents or parents-in-law
• Foreigners seeking medical treatment (with one companion allowed)

Key details:

• Valid for 6 months up to 5 years
• Renewable before expiry
• Not allowed to work unless converted to an Employment Pass

Special note (Spouse of Malaysian):

Spouses of Malaysian citizens can work in Malaysia without converting to an Employment Pass, subject to endorsement by the Immigration Department.

---

3. Residence Pass – Talent (RP-T)

The Residence Pass – Talent (RP-T) is a renewable pass with a validity of up to 10 years, designed for highly skilled foreign professionals.

Key benefits:

• Freedom to change employers without reapplying for a new Employment Pass
• Spouse is allowed to work without applying for an Employment Pass
• Can bring spouse and children below 18 years old

Parents and children aged 18 and above may apply for a Long-Term Social Visit Pass (LTSVP).

Who is eligible?

Applicants must meet the following:

• Minimum 3 years in Malaysia on a valid Employment Pass
• Remaining EP validity of at least 3 months
• At least 5 years of total work experience
• Monthly salary of RM15,000 and above
• Recognised academic qualifications
• Taxpayer in Malaysia for at least 2 years

Applicants in key sectors (e.g. Oil & Gas, Finance, Healthcare, Technology, etc.) may have higher approval chances.

Application:

Processed by MYXpats Centre (TalentCorp Malaysia).

---

4. Malaysia Tech Entrepreneur Programme (MTEP)

The Malaysia Tech Entrepreneur Programme (MTEP) is designed for foreign tech founders who wish to establish or expand their business in Malaysia and access the ASEAN market.

Categories:

New Entrepreneur

• Duration: 1 year
• Pass type: Professional Visit Pass (PVP – MTE)
• Dependents: Not allowed

Established Entrepreneur

• Duration: Up to 5 years
• Pass type: Residence Pass – MTE
• Dependents: Allowed

Key benefits:

• Fast-track approval (~6 weeks) compared to EP (4–6 months)
• No minimum paid-up capital (but recommended)
• Opportunity to scale into ASEAN markets

Requirements include:

• Business pitch deck
• Financial track record / bank statements
• Certificate of good conduct
• Local sponsor or partner
• (For established founders) venture capital involvement

Application:

Submitted via MDEC.

---

5. Professional Visit Pass (PVP)

The Professional Visit Pass is issued to foreign professionals who wish to temporarily enter Malaysia to provide services or undergo training on behalf of an overseas company.

Key details:

• Valid for 12 months (extendable for another 12 months)
• Must be employed and paid by an overseas company
• Not allowed to bring dependents

Who is eligible?

Includes:

• Foreign artists and performers
• Film and production crew
• Experts in specialised fields
• Religious workers and teachers
• Government officials on official duties
• Volunteers and trainees

---

FAQs about Employment Pass

Click ↪ to view the answer.

↪ 1. I am interested in applying for Employment Pass (EP) under my own Private Limited (Sdn Bhd) company can I do that?

Yes, Sdn Bhd companies can apply for an Employment Pass (EP), except those in restricted sectors.

Important:
Companies with ≥51% foreign shareholding in the Wholesale, Retail & Trade (WRT) sector must obtain a WRT licence before applying.

Prohibited sectors include:

• Others
• Supermarket / minimarket (<3,000 sq ft)
• Provision shop / general vendor
• 24-hour convenience store
• News agent / miscellaneous goods store
• Medical hall (traditional medicine & dry goods)
• Fuel station (with or without convenience store)
• Permanent wet market / pavement store
• National strategic interest sectors
• Textile, restaurant (non-exclusive), bistro, jewellery shops

↪ 2. What are the requirements for applying for an Employment Pass?

First of all, please ensure that your company can meet the requirements to apply for an Employment Pass which is required by the Immigration Department. Please refer to the table above regarding Table 1 and 2. 

↪ 3. I am not willing to inject the high Paid-up capital. Is there any other way I can apply for the Employment Pass using the same company?

No, the Paid-Up Capital requirement is the minimum requirements fixed by the Immigration Department for companies who wish to apply for an Employment Pass. 

↪ 4. How high is the chance of me getting the Employment Pass?

It depends on your qualifications and experience.

To improve your chances, you should meet:

• Degree + 3+ years relevant experience
• Diploma + 5+ years experience
• Technical Certificate + 7+ years experience
• A managerial, executive, or technical role
• Minimum salary requirements
• Not working in a restricted sector

If applying as a shareholder:

• Must be an SSM-registered Director or hold a key position

• Minimum 30% equity in the company

↪ 5. I am the Director of my Private Limited Company (Sdn Bhd), can I apply for a Business Owner Visa to work in Malaysia?

No, there is no such thing as Business Owner Visa in Malaysia. Application for an Employment Pass is the only method for all directors or employees who wish to work in Malaysia.

↪ 6. I have injected the amount of Paid-Up Capital required can I withdraw the money from my company business bank account?

Yes, you can. As long as you can prove the sum of capital has been deposited to the bank account.

However, do bear in mind that the withdrawal of capital will become the amount of debt towards the company for whoever received the fund e.g amount owing by shareholder/director.

↪ 7. Normally how long is the approval (how many years of EP) can I get from the first Employment Pass application?

The Immigration Department will usually approve a 1 year Employment Pass for new application. The applying company can renew the pass 3 months BEFORE the expiry date.

The renewal procedure is quite simple and straightforward. The approval for pass renewal depends on the Immigration Deparment’s decision.

↪ 8. What is the procedure of applying for an Employment Pass?

Basically, there are 2 stages:
First Stage: Applying company to register an ESD account. (Approx 2 – 3 months)
Second Stage: Employment Pass application (Approx 2 – 3 months)

↪ 9. How much is an Employment Pass?

The whole process is estimated to cost around RM10,500 to RM9,000 (with MyFutureJob exemption).

↪ 10. Is there any guarantee on the success application?

No, the approval decision solely depends on the decision by the Immigration Department.

---

You’re welcome to join our community group to get exclusive and latest trend of business insight👇
① Join EN group
② Join CN group

---

Want to know more about starting a Sdn Bhd? What’s the best way to start one and what should you be mindful of? Register and find out in our upcoming webinar!

---

For more information, get in touch with us on WhatsApp @018-767 8055 today!atsApp @018-767 8055!