Definition of Foreign Expatriate

Foreigners who are qualified to fill in the following positions:  

• Key Post

These are high level (1^st level) managerial posts in foreign-owned private companies and firms operating in Malaysia . Key posts are posts essential for companies to safeguard their interests and investments. The expatriates are responsible in determining the company’s policies in achieving its goals and objectives.  

Example : Executive Chairman, Chief Executive Officer, Managing Director, General Manager, Technical Director, Production Manager, Project Manager Or Factory Manager  

• Executive Posts

These are intermediate level (2^nd level) managerial and professional posts. The posts require academic qualifications, practical experience, skills and expertise related to the respective jobs. The expatriates are responsible for implementing the company’s policies and supervision of staff.  

Example : Management Functions Such As Marketing Manager, Logistics Manager, Investment Manager And Quality Control Manager, Professional Such As Chief Engineer, Engineer Manager , Lecturer, Doctor, Architect etc.  

• Non-Executive Posts

These are posts for the performance of technical jobs that require specific technical or practical skills.

Example : Welder, Mould Maker, Tool & Die Maker, Manufacturing Systems Designer, Food/Nutrient Technologist, Fashion Designer, Specialist In Furniture Design & Ergonomics, Heat Setting Technician, Sewing Specialist, Craftsman/Engraving And Product/Flavouring Specialist  

PROCESS TO EMPLOY EXPATRIATE

These are two stages in the employment of expatriates: Application for an expatriate post and an endorsement of employment pass.  

First stage - application for approval (position) (There are 6 authorized Agencies)

Second stage - application for approval of related working permit ( Immigration Department of Malaysia )

STAGE 1

There are 6 authorized bodies / agencies that are given authorization to approve the employment of Expatriates based on business activities of the company. The Agencies are:

1. MIDA             -           Malaysian industrial Development Authority
2. MDeC            -           Multimedia Development Corporation
3. PSD                 -           Public Service Department
4. CBM               -           Central bank Malaysia
5. SC                   -           Security Commission
6. EC                   -           Expatriate Committee

MALAYSIAN INDUSTRIAL DEVELOPMENT AUTHORITY (MIDA)

The Expatriate Officer post for private companies in the following sectors:

• Manufacturing (existing and new company that is involved in the development proposal) sector
• Manufacturing Related Services sector
  • Regional Establishment – Operation Headquarters, Representative establishment, International Acquisition Centre etc.
• Hotel and Tourism Industry
• Research and development Sector    

Multimedia Development Corporation (MDeC)

Foreign knowledge workers in Information & Communication Technology for companies that have been granted the “MSC” status.

Public Service Department (PSD)

(To approve the contract of Expatriate to be employed in Public Sector)

• The medical doctor and medical nurse post in government hospitals/clinics.
• The lecturers/educators of Public Higher Education institution
• Public sector contract post
• The employment (job offer) is handled by Public Sector Commission / related Agency.

Central Bank Malaysia (CBM)

Employment in sector:

• Banking
• Financial
• Insurance

Security Commission (SC)

Employment in securities and futures industries  

Expatriate Committee (EC)

For the post in other public and private sectors that are not under the jurisdiction of MIDA, MDeC, PSD, CBM and SC.  

General guidelines…

How to determine the authorized agency that suits your company?

• Identify your company’s business activities

Expatriate Committee is under the jurisdiction of Ministry of home Affairs and Employment Pass Division of the Immigration Department acts as the secretariate to the committee. Members of the EC are as follows: 1 Ministry of Home Affairs (MOHA) Chairman (SG/DSG) 2 Ministry of International Trade and Industry (MITI) Member (Representative) 3 Ministry of Domestic Trade and Consumer Affairs (MDTCA) Member (Representative) 4 Ministry of Education (MOE) Member (Representative) 5 Ministry of Human Resources (MHR) Member (Representative) 6 Construction Industry Development Board (CIDB) Member (Representative) 7 Council Of Trust Member (Representative) 8 Immigration Department of Malaysia   Secretariate   Basic Requirements For Application Of Expatriate Under Expatriate Committee (EC) The application for Expatriate will be considered based on the following guidelines: a)    Minimum paid-up capital b)    Recommendation from related monitoring Agency c)     Registration of business activity with related monitoring Agency a)        Minimum Paid–Up Capital      No Equity Capital 1 100% local owned RM 150,000 2 Local and foreign owned RM 200,000 3 100% foreign owned RM 250,000    b)        Recommendation From Related Monitoring Agency   No Agency Sector 1 Ministry Of Higher Education Higher Education (Diploma Level And Above) 2 Ministry Of Education Primary And Secondary Education 3 Ministry Of Health (MOH) Modern Medical Practices And Health Care, Nursing, Traditional And Complementary Medicine And Health Care 4 Football Association Of Malaysia (FAM) Football Club/Association Affiliated With FAM 5 National Sports Council (Msn) Sports 6 Department Of Civil Aviation Malaysia (DCA) Civil Aviation And Civil Aviation Related Services 7 Ministry Of Tourism Malaysia Travel Agencies Related To Tourism Industry c ) Registration Of Business Activity With Related Monitoring Agency  Construction Industry Development Board (CIDB) -          For the company related to construction sector  Ministry of Domestic Trade and Consumer Affairs (KPDN& HEP) -          For the company with foreign equity that carries out wholesale marketing and retail business (including restaurant) and direct selling. Other Criteria That Considered Under Ec   The application will be considered based on the criteria as follows:   a)    The appropriateness of the scope of the job in relation to the company’s activity b)    Minimum monthly salary to identify whether the application is an expatriate or a foreign worker c)     Age and working experience of expatriate, i.e the applicant is of an age suitable for the and has the working experience

		Can be verified through Immigration Department of Malaysia Website at www.imi.gov.my  By mail Publicize on the informative board at: Expatriate Committee’s Unit,  Employment Pass Division,  Immigration Department of Malaysia (Headquarters) Putrajaya   The required documents are: Applications shall be made to Expatriate Committee by completing the applications form: 1. Authorization letter from company 2. Completed DP10 form   3. Covering letter explaining company activities and job       justifications      (Appeal letter if related)   4. Expatriate officer’s resume i. Photocopy of academic qualifications    (Must be verified by Human resources Manager and above)   5. Latest Print-out Companies Commission of Malaysia , Form 9, 24, & 49 (Copies must be verified by Companies Commission of Malaysia) 6. Recommendation letter from related agency (For the following activities/discipline):  Education    - Ministry of Higher Education/Ministry of Education Medical       - Ministry of Health (modern/traditional) Tourism       - Ministry Of Tourism Aviation       - Department of Civil Aviation Malaysia Sports          - National Sports Council Football       - Football Association of Malaysia (FAM) Equestrian    - Equestrian Association of Malaysia 7. Business license from local authority (PBT)   8.         i. CIDB license / project contract- (construction only)               ii. Direct selling license from KPDN & HEP – (direct selling only)               iii. Approval letter WRT from KPDN & HEP              – (For the company with foreign equity that carries out                  wholesale transaction and retail/restaurant) Companies should submit their applications by hand or by mail to        Expatriate Committee Employment Pass Division Immigration Department of Malaysia (Headquarters)      Level 3, Block 2G4 (Podium) Precint 2                      Pusat Pentadbiran Kerajaan Persekutuan 62550 Putrajaya Wilayah Persekutuan

STAGE 2

The second stage is the process of endorsement of employment pass or passes related to expatriate post after getting approval from EC or other approving agencies.
 

Complete set of application consists of: Identification as company’s officer OR Authorization letter Completed DP11 Form attached with a photograph of the Expatriate Offer and acceptance Letter OR Employment Contract (Stamped RM10.00 at Duty Stamp Office) for Visit Pass (Temporary Employment) Photocopies of the latest passport of the Expatriate ( 2 copes for PRC national) And (If Applicable)    To attach the approval letter from MIDA/CBM/SC/PSD/MOHA whichever applicable (not applicable for approvals from EC and MDeC)  To attach a company’s corporate information’s print-out from Companies Commission of Malaysia (CCM) OR form 9, 24 & 49 for MIDA and EC approval (if there is conditional approval from JKPD to increase the  paid up capital) To attach the Expatiate’s resume, a photocopy of certificate / Diploma/ degree for MIDA approval of posts other than key posts. (if MIDA’s approval is for both the post and the expatriate, the document is not necessary). To attach the release letter from a previous employer   Companies should submit their applications by hand to : Employment Pass Division Immigration Department of Malaysia (Headquarters) Level 3, Block 2G4 (Podium) Precint 2 Pusat Pentadbiran Kerajaan Persekutuan 62550 Putrajaya Wilayah Persekutuan               Or The nearest Immigration Department of Malaysia state office

Employment Pass in the pass that is granted to Foreign Expatriates in order for them to work and stay in this country legally. Nevertheless, there are cases where the Expatriate are only given the Visit Pass (Temporary Employment) to work in this country.   A levy will be imposed on the Visit Pass (Temporary Employment)) according to sector:

Levy For Visit Pass (Temporary Employment)

NO FEES PENINSULAR SABAH AND SARAWAK PER ANNUM (RM) PER ANNUM (RM) PER ANNUM (RM) 1 MANUFACTURING 1,200.00 100.00 960.00 2 CONSTRUCTION 1,200.00 100.00 960.00 3 PLANTATION 540.00 45.00 540.00 4 AGRICULTURE 360.00 30.00 360.00 5 SERVICE a. Restaurant   1,800.00     150.00     1,440.00 b. Washing and refinement  1,800.00  150.00  1440.00 c. Cargo Handling