GUIDELINE, PROCESS AND PROCEDURE FOR APPLICATION
OF EXPATRIATE
Definition of Foreign Expatriate
Foreigners who are qualified to fill in the following positions:
Key Post
These are high level (1st
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 (2nd
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 workingpermit ( 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:
i.
MIDA
Malaysian Industrial Development Authority
ii.
MDeC
Multimedia Development Corporation
iii.
PSD
Public Service Department
iv.
CBM
Central Bank Malaysia
v.
SC
Securities Commission
vi.
EC
Expatriate Committee
AGENCIES
i.
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
ii.
Multimedia Development Corporation (MDeC)
Foreign knowledge workers in Information
& Communication Technology for companies that have
been granted the “MSC” status.
iii.
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.
iv.
Central Bank Malaysia (CBM)
Employment in sector:
Banking
Financial
Insurance
v.
Securities Commission (SC)
Employment in securities and futures industries
vi.
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?
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
Effective from
1 January 2009, minimum paid up capital
is as below:-
No
Equity
Capital
1
100% local owned
RM 250,000
2
Local and foreign owned
RM 350,000
3
100% foreign owned
RM 500,000
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)
Company share of equity
b)
Company activity
c)
Availability of local workforce
d)
The appropriateness of the scope of the job in
relation to the company’s activity
e)
Minimum monthly salary to identify
whether the application is an expatriate or a foreign
worker
f)
Age and working experience of expatriate, i.e
the applicant is of an age suitable for the post
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 resume
- 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 ofEducation
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.
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)
which include :
a. Title of the post
b. Duration of the employment contract
c. Monthly salary
d. To be signed by employer and employee
Photocopies of the latest passport of the Expatriate
( 2 copies for PRC national)
And (If Applicable)
a.
To attach the approval letter from MIDA/CBM/SC/PSD/MOHA
whichever applicable (not applicable for approvals
from EC and MDeC)
b.
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)
c.
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).
d.
To attach the release letter from
a previous employer when switching to a new 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
SECTOR
FEES
PENINSULAR
SABAH AND SARAWAK
PER
ANNUM
(RM)
PER
MONTH
(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
1,800.00
150.00
1440.00
d.Dobby
1,800.00
150.00
1440.00
e.Caddies
1,800.00
150.00
1440.00
f. Barber Shops
1,800.00
150.00
1440.00
g. Retail &Wholesale Business
1,800.00
150.00
1440.00
h.Textile
1,800.00
150.00
1440.00
i. Metal, Old and Faded, and
used Items
1,800.00
150.00
1440.00
6
WELFARE HOMES
600.00
50.00
600.00
7
OTHERS
1,800.00
150.00
1,440.00
1. Fees are as follows:- 1.1 Employment Pass
(for the approved position with minimum salary of at least
2 years working contract)
(Effective from 1 January 2009, minimum
salary for holders of Employment Pass is RM5,000.00 per
month)
