Malaysia’s position as a regional business hub makes it an attractive destination for foreign talent. But hiring expatriates isn’t just a matter of recruitment—it’s a regulated process governed by immigration law, sectoral policies, and labor quotas.
Whether you’re building a tech team, scaling manufacturing operations, or appointing senior leadership, employers must navigate the Expatriate Employment Pass (EP) system and meet strict eligibility criteria.
This article outlines the key requirements, pass categories, and compliance steps employers must follow to legally hire expatriates in Malaysia.
The Expatriate Services Division (ESD) is the centralized platform for managing expatriate-related immigration matters, including registration, application submission, and status tracking. Before applying for immigration approvals, companies must first secure the relevant industry-specific licenses, meet minimum paid-up capital requirements, and register for an ESD account.
The process involves more than just paperwork. Before any submission to the Immigration Department, companies must also obtain endorsements from sector-specific regulatory bodies and demonstrate full compliance with the following criteria:
Locally Incorporated companies intending to hire foreign workers, whether for short-term or long-term positions, are required to obtain the necessary work permits. These permits grant authorization for foreign employees to legally work within the country. Prior to initiating the immigration application process, it is mandatory for companies to secure specific industry licenses.
There are two primary types of work permits:
Employment Pass (EP)
Typically sought for foreign nationals filling executive, managerial, or professional roles for extended periods. The EP is designed for long-term employment where the foreign employee receives a salary from a sponsoring local company and pays local taxes. There are three categories of Employment Passes, each with varying salary requirements and durations.
Professional Visit Pass (PVP)
The PVP allows foreign professionals to work in Malaysia for up to 12 months, typically for training, installation, commissioning, or other project-based tasks. The individual must remain on the overseas payroll and cannot receive a salary from the local sponsor, though Malaysian tax may apply depending on benefits and duration of stay.
Used mainly by international contractors, the PVP requires a Malaysian entity, usually the client or subcontractor, to act as sponsor. Companies must secure industry licenses, meet paid-up capital thresholds, and register with the ESD.
These are minimum requirements; approval is not guaranteed. Applications are reviewed case-by-case, and criteria may change without notice.
PVP Categories
Kindly refer to Guide: Visa & Immigration in Malaysia
Locally Incorporated companies intending to hire foreign workers, whether for short-term or long-term positions, are required to obtain the necessary work permits. These permits grant authorization for foreign employees to legally work within the country. Prior to initiating the immigration application process, it is mandatory for companies to secure specific industry licenses.
There are two primary types of work permits:
Employment Pass – typically sought for foreign nationals filling executive, managerial, or professional roles for extended periods.
Professional Visit Pass – designed for short-term engagements, allowing foreign individuals to undertake professional activities such as attending meetings or providing consultancy services within Malaysia. Ensuring compliance with Malaysian immigration regulations is essential for companies seeking to employ foreign workers.
Further Reading: Why Incorporating a Company in Malaysia Might Not Be Your Best Move — 9 Scenarios Where EOR Offers a Competitive Edge
Malaysia welcomes foreign talent—but only through structured, compliant pathways. From job role justification to immigration clearance, every step must align with national policies and labor market priorities. Missteps can result in rejected applications, penalties, or blacklisting.
