Malaysia Revises Employment Pass Regulations for Foreign Nationals

Malaysia’s Employment Pass (EP) plays a vital role for foreign professionals seeking work opportunities. Recent updates to the EP regulations aim to streamline the application process for foreign workers and their employers.

Understanding the Employment Pass

The Employment Pass allows expatriates to work in Malaysia. Key features of the EP include:

• Duration: It is valid for up to 60 months, depending on the employment contract.
• Dependent Benefits: EP holders can apply for a Dependent Pass for their spouse and children under 18 years old.
• Employer-Specific: Workers can only be employed by the company listed on their EP. To switch employers, they must submit a new application.

Key Changes to Employment Pass Rules

New requirements for changing Employment Pass categories now apply. Employers must comply with the following:

• Cancellation of Current Pass: Employers must cancel the existing Employment Pass before applying for a change in category.
• Change of Category Letter: Starting January 1, 2025, employers must submit a “change of category letter” at the application approval stage.

These steps ensure clarity and compliance in the application process for foreign nationals.

Requirements for the Employment Pass

Before applying for an Employment Pass, both foreign workers and their employers must meet specific criteria:

• Employer Eligibility: The hiring company must be qualified to employ expatriates.
• Approval from Authorities: The Expatriate Committee (EC) must approve the foreign talent’s role.
• Proper Documentation: Employers must provide all necessary documents, including the change of category letter.

Key Considerations for Employment Pass Holders

• Dependent Pass: EP holders can apply for a Dependent Pass for spouses and children under 18.
• Job Scope: Foreign workers must adhere to the employment terms in their Employment Pass. Changing employers requires a new application.
• Company Eligibility: Foreign workers should verify that their prospective employer is eligible to sponsor an EP.

The Role of the Expatriate Committee

The Expatriate Committee (EC) is crucial in the Employment Pass application process. They evaluate and approve the need for foreign talent in specific positions within Malaysian companies. Only after obtaining EC approval can the Immigration Department issue an EP.

Alternatives for Foreign Workers in Malaysia

Foreign nationals have options beyond the Employment Pass. Here are some alternatives:

• Professional Visit Pass (PVP): Ideal for short-term assignments, valid for up to 12 months.
• Temporary Employment Pass (TEP): Suitable for unskilled or semi-skilled positions, typically in manufacturing, agriculture, or services.
• Resident Pass-Talent (RP-T): Designed for highly skilled professionals, offering a 10-year renewable visa with flexibility to work with any employer.

Malaysia Increases Visa Fees

Starting in September 2024, Malaysia raised fees for various visa categories for expatriates and their dependents. This fee adjustment aims to streamline processing and expedite applications for critical sectors.

Key Fee Changes:

• Employment Pass (EP): Increased from MYR 800 to MYR 2,000.
• Dependent Pass (DP): Increased from MYR 450 to MYR 500.
• Long-Term Social Visit Pass (LTSVP): Now costs MYR 500, up from MYR 450.
• Professional Visit Pass (PVP): Increased from MYR 800 to MYR 1,200.

The Immigration Department expects these fee increases to contribute to faster processing times for critical sectors.

Conclusion

These new Employment Pass regulations reflect Malaysia’s commitment to improving processes for foreign workers and employers. Understanding these updates is crucial for a smooth transition. For those considering work opportunities in Malaysia, familiarizing yourself with the Employment Pass and its alternatives can help you choose the best option for your career goals.