To enter Malaysia, visitors must have a national passport or other internationally recognized travel documents with a validity period of at least six months beyond the length of stay in Malaysia. All passports and travel documents must be endorsed for travelling in Malaysia.
In order to obtain a work permit, the passport should have a remaining validity of at least 18 months. The foreign national coming to Malaysia to work must be 27 years and above (exception in IT sector, where required minimum age is 23). The work permits are usually issued for periods between 6 months and 5 years.
As for employers, any information regarding the visa process, requirements or the necessary forms, can be viewed on the official website of the Malaysian Immigration Department.
Work passes
Depending on the type of job and skills, different working passes are issued when obtaining a work permit.
- Employment Pass: This pass is issued to employees with specific skills, usually for technical or managerial jobs. The minimum period is usually 2 years.
- Temporary Employment Pass: Issued for employment for less than 2 years or for jobs with a monthly salary less than RM 5000.
- Professional Visit Pass: Issued to foreign nationals who remain employed by the company in the home country but are required by a Malaysian company to provide certain services for a period up to 6 months.
Setting up a business
In Malaysia, a business may be conducted:
- By an individual operating as a sole proprietor, or
- By two or more (but not more than 20) persons in partnership, or
iii. By a limited liability partnership (LLP), or
- By a locally incorporated company or by a foreign company registered under the provisions of the Companies Act (CA) 2016.
Malaysia’s commitment in creating a safe investment environment has attracted more than 8,000 international companies from over 40 countries to make Malaysia their offshore base.
Equity Ownership
A company whose equity participation has been approved will not be required to restructure its equity at any time as long as the company continues to comply with the original conditions of approval and retain the original features of the project.
Investment Guarantee Agreements
Malaysia’s readiness to conclude Investment Guarantee Agreements (IGAs) is a testimony of the government’s desire to increase foreign investor confidence in Malaysia.
IGAs will:
- Protect against nationalization and expropriation
- Ensure prompt and adequate compensation in the event of nationalization or expropriation
- Provide free transfer of profits, capital and other fees
- Ensure settlement of investment disputes under the Convention on the Settlement of Investment Disputes of which Malaysia has been a member since 1966.
Malaysia has concluded Investment Guarantee Agreements (IGAs) with various countries. Visit https://www.mida.gov.my/home/starting-up-business/posts/ for more information.