Invest in Malaysia
2. Employment of Expatriate Personnel
The Malaysian government is desirous that Malaysians are eventually trained and employed at all levels of employment. Thus, companies are encouraged to train more Malaysians so that the employment pattern at all levels of the organisation reflects the multi-racial composition of the country.
Notwithstanding this, where there is a shortage of trained Malaysians, companies are allowed to bring in expatriate personnel i.e. ‘key post’ or ‘time post’. Key posts are posts that are permanently filled by foreigners whereby time post are position filled on specified time.
2.1 Types of Expatriate Posts
Expatriates are foreigners who are qualified to fulfil the following positions:
a. Key Post
These are high level managerial posts in foreign-owned private companies and firms operating in Malaysia. Key posts are posts essential for companies to safeguard their interest and investments. The expatriates are responsible in determining the company’s policies in achieving its goal and objectives.
|These are intermediate level of managerial and professional posts. The post requires professional qualifications, practical experience, skills and expertise related to the respective jobs. The expatriate are responsible in implementing the company’s policies and supervision of staff.|
|These are posts for the performance of technical jobs that require specific technical or practical skills and experience.|
2.2 Guidelines on the Employment of Expatriate Personnel
There are two stages in the employment of expatriates:
|a.||Application for an expatriate post from relevant authorised bodies determined by the nature of the business.|
|b.||Upon approval of the expatriate posts by the approving bodies, the company must submit an application to the Immigration Department for endorsement of the employment pass.|
The guidelines on the employment of expatriate personnel are as follows:
Manufacturing companies with foreign paid-up capital of US$2 million and above:
|•||Automatic approval is given for up to 10 expatriate posts, including five key posts.|
|•||Expatriates can be employed for up to a maximum of 10 years for executive posts, and five years for non-executive posts|
|b)||Manufacturing companies with foreign paid-up capital of more than US$200,000 but less than US$2 million:|
|•||Automatic approval is given for up to five expatriate posts, including at least one key post.|
|•||Expatriates can be employed for up to a maximum 10 years for executive posts, and five years for non-executive posts|
|c)||Manufacturing companies with foreign paid-up capital of less than US$200,000 will be considered for both key posts and time posts based on current guidelines. They are:|
|•||Key posts can be considered where the foreign paid-up capital is at least RM500,000. This amount, however, is only a guideline and the number of key posts allowed depends on the merits of each case.|
|•||Time posts can be considered for up to 10 years for executive posts that require professional qualifications and practical experience, and five years for non-executive posts that require technical skills and experience. For these posts, Malaysians must be trained to eventually take over the posts.|
|•||The number of key posts and time posts allowed depends on the merits of each case.|
|d)||For Malaysian-owned manufacturing companies, approval for the employment of expatriates for technical posts, including R & D posts, will be given as requested.|
An expatriate personnel who is transferred from one post to another within the same company will be required to obtain a new employment pass. His original employment pass will be amended to reflect the change in post. A new expatriate personnel replacing another must also obtain a fresh employment pass.
All employment passes are valid for the period approved for the post. However, for key post holders, employment passes will be issued up to five-year renewable basis except in circumstances where:
the validity of the expatriate's passport is less than five years,
the expatriate's employment contract is less than five years, or
the employer requires the services of the expatriate for less than five years.
Holders of employment passes will be issued with multiple entry visas valid for the duration of the employment pass.
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