Any and all expatriates looking to work in Malaysia must possess an Employment Pass. There are two stages in the employment of expatriates in Malaysia, submitting an application for an expatriate post and an endorsement of the employment pass. Firstly, an application for an expatriate post must be submitted to the relevant agency for approval. These include agencies such as the Malaysian Industrial Development Authority (MIDA) for manufacturing-related services sectors, the Multimedia Development Corporation (MDeC) for the information technology companies that have been receive Multimedia Super Corridor (MSC) status, the Central Bank of Malaysia (BNM) for companies in the financial, insurance, and banking sectors, the Securities Commission (SC) for companies involved in the securities and futures market, the Malaysian Biotechnology Corporation (BC) for companies in the biotechnology industry, and the Expatriate Committee (EC) for expatriate posts in all other sectors.
Secondly, once the expatriate post application has been approved by the relevant agency, another application must be submitted to the Immigration Department to endorse the Employment Pass. Only once this Employment Pass has been endorsed can the expatriate be hired. There are three types of expatriate posts in foreign-owned private companies. This includes key posts such as high-level managers, executive posts such as managers and professionals, and non-executive posts.
Individuals in key posts are essential for the company to safeguard their interests and investments in the country. Therefore, expatriates in key posts have to be responsible in determining the company’s policies in achieving its goals and objectives. Examples of such key posts include Executive Chairman, Chief Executive Officer, Managing Director, General Manager, Technical Director, Production Manager, Project Manager, or Factory Manager.
Individuals in executive posts must possess academic qualifications, practical experience, skills and expertise related to the respective jobs. These executive posts expatriates must be responsible in implementing the company’s policies and the supervision of staff. Examples of such executive posts include Marketing Manager, Logistics Manager, Investment Manager, Quality Control Manager, Chief Engineer, Engineering Manager, Lecturer, Doctor, Architect etc.
Individuals in non-executive posts perform technical jobs and as such must possess specific technical or practical skills and experience. Examples of such non-executive posts include Welder, Mould Maker, Mould Designer, 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.
Manufacturing companies looking to invest in Malaysia enjoy some benefits. For instance, if the foreign paid up capital of a company exceeds US$2 million, 10 expatriate posts, which includes five key posts, will be automatically approved while five expatriate posts, including at least one key post, will be automatically approved for companies with more than US$200,000 in foreign paid up capital. Lastly, manufacturing companies with foreign paid-up capital of less than US$200,000, the approval of expatriates in key posts will be taken into consideration should the foreign paid-up capital exceed RM500,000. Furthermore, the number of key posts, executive posts, and non-executive posts allowed will depend on the merit of each case.
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