Malaysia Work Permit and Business Visa

Malaysia’s strategic geographic location, business-friendly regulatory environment, and skilled multilingual workforce continue to attract foreign companies and professionals seeking to establish operations or advance their careers in the region.

Contributing Advisor

Quinn Lu

Senior Associate, International Business Advisory

As the economy advances, demand for specialized talent—particularly in technology, advanced manufacturing, financial services, healthcare, and professional services—continues to grow, prompting the recruitment of foreign professionals for leadership, technical, and research roles.

Malaysia’s multilingual and multicultural workforce, combined with strong English proficiency and business-friendly infrastructure, further supports the establishment of regional headquarters and shared service centres. To facilitate this, the government has modernized its work visa framework under the Expatriate Services Division (ESD), introducing efficient online systems, transparent quota management, and new visa categories such as digital nomad, tech entrepreneur, and investor passes—underscoring Malaysia’s ambition to position itself as a regional hub for knowledge, innovation, and investment.

Work visa vs. business visa in Malaysia — what's the difference?

Understanding the distinction between work visas and business visas is essential for selecting appropriate visa categories and ensuring regulatory compliance. These visa types serve fundamentally different purposes within Malaysia's immigration framework:

Work Visas authorize the holder to engage in employment with a Malaysian employer (or for specific pass categories, foreign employers) and establish long-term residency. These visas require employer sponsorship, medical examinations for extended permits, and compliance with Malaysian labour law obligations. Work visas provide pathways toward extended residency and, in some cases, permanent residence status.

Business Visas permit short-term entry for specific business purposes—including attending meetings, contract negotiations, market research, or attending conferences—without establishing employment relationships. Business visa holders may not engage in regular employment or receive Malaysian salary payments. These visas are substantially faster to obtain and carry fewer documentation requirements, making them appropriate for frequent business travelers and short-term professional engagements.

Types of work permits and visas in Malaysia

Malaysia administers multiple work permit and visa categories, each designed to accommodate different professional profiles, employment arrangements, and residency durations.

Employment Pass (EP)

The Employment Pass represents Malaysia's principal work permit for skilled foreign professionals, managers, technical specialists, and executives. The EP system operates through three distinct categories based on salary thresholds, employment duration, and professional qualifications.

Temporary Employment Pass (TEP)

The Temporary Employment Pass addresses Malaysia's demand for unskilled and semi-skilled foreign workers in labour-intensive sectors. TEP permits are administered through quota systems managed by the Ministry of Human Resources, with sector-specific allocations for manufacturing, construction, plantation agriculture, domestic services, and hospitality.

• Validity: 12 months.
• Renewal: Available for up to 5 years total employment.
• Sponsorship: Required by Malaysian employer.
• Medical examination: Mandatory (FOMEMA standards).
• Quota system: Sector-dependent; source country restrictions apply.
• Processing time: 4–8 weeks typically.
• Dependent passes: Not available.

Professional Visit Pass (PVP)

The Professional Visit Pass accommodates short-term professional engagements for foreign experts, consultants, trainers, volunteers, students, artists, and religious workers. Notably, PVP holders may not receive employment income from Malaysian sources; compensation must originate from foreign employers or clients.

• Validity: Up to 12 months (6 months for factory/hotel training).
• Sponsorship: Required by Malaysian sponsor (organization, company, or institution).
• Employment restriction: Cannot work for Malaysian employers or receive Malaysian salary.
• Professional categories: Experts, consultants, trainers, volunteers, students, artists, religious workers, machinery installation specialists.
• Dependent passes: Not available.
• Processing time: 2–4 weeks typically.
• Renewal: Possible at immigration discretion.

Residence Pass–Talent (RP-T)

The Residence Pass–Talent represents Malaysia's premium long-term visa category for high-value foreign professionals, executives, and knowledge workers. The RP-T offers extended validity and enhanced privileges compared to standard Employment Passes.

• Validity: Up to 10 years.
• Renewal: Available (multiple renewals permitted).
• Dependent eligibility: Family members may qualify.
• Target applicants: Senior executives, specialists, researchers, professionals in critical sectors.
• Job mobility: Greater flexibility in role changes and employer transitions compared to standard EPs.
• Processing time: 6–10 weeks typically.
• Eligibility: Typically requires RM10,000+ monthly salary plus additional qualifications or sector-specific criteria.

Malaysia Digital Nomad Visa (De Rantau Pass)

Malaysia's Digital Nomad Visa targets remote workers, freelancers, and digital professionals seeking extended Malaysian residency while maintaining overseas employment relationships.

Eligibility criteria:

• Active employment contract (minimum 3 months duration) with foreign or Malaysian company; or,
• Active freelance/contract work (minimum 3 months) from foreign or Malaysian clients.
• Minimum annual income: US$24,000.
• Digital sector focus: Information technology, digital marketing, digital content creation, digital creative services.
• Professional qualifications: CV and educational documentation.

Required documentation:

• Valid passport (minimum 6 blank pages, 18 months validity).
• Passport-sized photograph.
• Proof of income (pay slips, bank statements, income certificate).
• Employment contract or freelance agreement.
• Bank statements (3-month history minimum).
• Health insurance certificate (valid in Malaysia).
• Letter of good conduct from home country authorities.
• Personal bond form.

Benefits:

• Validity: Up to 12 months.
• Renewable: Yes, for consecutive periods.
• Dependent eligibility: Permitted (with documentation).
• Access to nomad-friendly co-working hubs and lifestyle benefits.
• Processing time: 4 weeks typically.

Malaysia Tech Entrepreneur Programme (MTEP)

Malaysia's Tech Entrepreneur Programme accelerates visa processing and business establishment for technology sector founders, established entrepreneurs, and tech investors. MTEP offers two distinct visa pathways:

New Entrepreneur Pass (Professional Visit Pass-MTE)

• Validity: 1 year (renewable upon achieving milestones).
• Eligibility: Tech founders with innovative digital business ideas (no established track record required).
• Up to 2 co-founders per company eligible.
• Minimum personal funds: RM50,000.
• Targeted sectors: AgriTech, FinTech, HealthTech, AI, blockchain, cybersecurity, clean technology.
• Processing time: Expedited (typically 3–4 weeks).

Established Entrepreneur Pass (Residence Pass-MTE)

• Validity: 5 years (renewable).
• Eligibility: Proven entrepreneurs with 2+ years established business, demonstrated track record with latest 2-year financial records.
• Dependent eligibility: Spouse and children authorized.
• Minimum personal funds: RM50,000 demonstrated.
• Job mobility: Greater flexibility across tech sectors.
• Processing time: 4–6 weeks typically.
• Application fee: RM5,300 (approximately US$1,200).

Malaysia business visa options for foreign investors

Malaysia offers multiple business visa categories designed for foreign investors, entrepreneurs, and business travelers engaged in short-term commercial activities.

Short-term business visa (single-entry visa)

This type of visa is available for attendance at business meetings, negotiations, conference participation, market research visits, or contract discussions.

Malaysia multiple-entry business visa

This type of visa is available for frequent business travelers requiring multiple entries for ongoing business relationships, negotiations, project management, or organizational activities.

Malaysia Investor Pass

Introduced in April 2025, the Investor Pass represents Malaysia's initiative to attract high-value foreign investors, business founders, and entrepreneurs seeking extended residency for investment management and business operations.

Required documentation:

• Valid passport (18+ months validity).
• Proof of investment intent or activity (company incorporation certificate, investment proposal, contractual agreements).
• Financial capability documentation (audited financial statements, bank statements, net worth declarations).
• Police clearance certificate (criminal background check).
• Comprehensive business plan (investment nature, timeline, projected value, employment creation estimates).
• Detailed curriculum vitae and professional credentials.
• Corporate profile or business documentation.

Malaysia work permit application process

The Malaysia work permit application process involves sequential phases, each requiring employer action and government approval before proceeding to subsequent stages. Understanding this process ensures timely and accurate applications.

Step 1: Employer registration and quota application (ESD, MIDA, or MDEC)

Requirements for employer registration:

• Company must be registered with Companies Commission of Malaysia (SSM), Registry of Societies (ROS), or equivalent government body.
• Minimum paid-up capital requirements (sector-dependent).
• Valid business license and tax registration.
• Office address in Malaysia.
• Local company director (for certain entity structures).

For ESD-registered employers:

• Create account on ESD online portal (https://esd.imi.gov.my).
• Submit company documentation and verification information.
• Obtain ESD approval (typically 5–10 working days).
• Receive employer registration confirmation.

For quota applications:

• Submit expatriate post requisition specifying position, salary, qualifications, employment duration.
• Provide job description and organizational chart context.
• Document recruitment efforts demonstrating local talent unavailability (where required).
• Submit quota application via online ESD portal.

Processing: Quota approval is typically instantaneous upon complete submission. Unused quotas do not carry forward to subsequent years.

Step 2: Approval from relevant authority (sector-dependent)

Step 3: Visa With Reference (VDR) issuance by Immigration Department

Process:

• Approved employer submits candidate visa application to Immigration Department or Malaysian embassy/consulate.
• Candidate documentation submitted: valid passport, employment offer letter, medical examination results (for extended passes), educational qualifications, financial documentation.
• Immigration Department issues Visa with Reference (VDR)—an approval reference number rather than a physical visa.
• VDR transmitted to employer or candidate (depending on application channel).
• VDR validity: Typically 3 months from issuance.

Documentation Required for VDR Application:

• Candidate curriculum vitae and educational certificates.
• Employment offer letter specifying position, salary, employment duration.
• Medical examination results (FOMEMA-certified for Employment Passes).
• Valid passport with photocopies.
• Employer company registration and tax clearance.
• Proof of financial stability (candidate bank statements for higher-category passes).

Step 4: Candidate entry into Malaysia and work permit endorsement

Procedures:

• Candidate enters Malaysia using VDR and travel document (passport).
• Upon arrival at airport or land border, candidate presents VDR reference and passport to immigration.
• Immigration verifies VDR validity and candidate documentation.
• Immigration officer conducts brief interview and verifies travel purpose.
• Immigration stamps passport indicating entry approval.

Important notes:

• Candidate should carry printed VDR confirmation and all supporting documents.
• Entry must occur before VDR expiration date (typically 3-month window).
• Late entry may require new VDR application.

Step 5: Issuance of Employment Pass / TEP / PVP sticker and registration

Post-arrival procedures:

• Employer arranges appointment at Immigration Department Expatriate Services Division office.
• Candidate and employer representative attend appointment together.
• Immigration conducts pass adjudication and verification interview.
• Biometric data collected (fingerprints, photograph).
• Employment Pass sticker or label affixed to passport.
• Pass registration recorded in Immigration database.
• Employer receives official employment pass confirmation.

Processing timeline:

• Identity card issuance: Typically, same-day or within 1–2 working days of appointment.
• Total application-to-issuance timeline: 6–12 weeks (from quota application to pass possession).

Following pass issuance, employer must register candidate with:

• Employees Provident Fund (EPF): Contribution commencement.
• Social Security Organisation (SOCSO): Work injury coverage.
• Employment Insurance System (EIS): Retrenchment protection.
• Inland Revenue Board (LHDN): Income tax registration and monthly withholding (PCB).

Malaysia business visa application process

Step 1: Document preparation

Required documentation package:

• Valid passport (minimum 6 months validity, 3 blank pages).
• Passport-sized photograph (recent, white background, 4x6cm).
• Completed visa application form (available online or at embassy).
• Invitation letter from Malaysian company or organization (official letterhead, addressed to embassy, specifying visitor's name, position, visit purpose, duration, host company details).
• Company registration certificate and director listing (for host organization).
• Proof of financial capacity: bank statements (3 months), credit card statements, traveler's cheques, or proof of corporate sponsorship.
• Return flight ticket confirmation or itinerary.
• Hotel/accommodation booking confirmation.
• Letter from employer confirming leave approval and job title.
• Travel insurance certificate (recommended).

Step 2: Online or embassy application submission

Visa applications for Malaysia can be submitted either online through the Malaysian government’s e-visa portal (for eligible nationalities) or in person at a Malaysian Embassy or Consulate.

For the online process, applicants must access the e-visa portal, complete the digital application form with personal and travel details, upload supporting documents in the required formats, and pay the visa fee online. A confirmation email with a reference number will be issued, allowing applicants to track their application status through the portal.

For the Embassy or Consulate process, applicants should first verify visa requirements based on nationality, prepare all necessary documents, and submit them in person or via an authorized courier. Some applicants may be required to provide biometric data. Visa fees can be paid according to the embassy’s accepted payment methods, and applicants will be notified once their visa is ready for collection.

Step 3: Visa Issuance or Visa With Reference (if applicable)

Visa processing outcomes in Malaysia generally fall into three categories: approval, conditional approval, or rejection. Upon approval, applicants receive either a visa stamped in their passport or an e-visa confirmation via email. In cases of conditional approval, a Visa With Reference (VDR) is issued, requiring the applicant to complete registration upon arrival in Malaysia. If the application is rejected, a notification outlining the reasons is provided, and applicants may reapply with corrected or additional documentation.

The standard processing timeframe typically ranges from 3 to 10 days, while expedited processing may be available in certain cases, allowing for approval within 1 to 2 days for an additional fee.

Step 4: Entry into Malaysia and stay conditions

At the port of entry, travelers must present their passport with a valid visa stamp or e-visa confirmation. Immigration officers will verify the visa’s authenticity and the traveler’s personal details before stamping the passport with the entry date and authorized duration of stay. Visitors also receive a departure card, which must be retained and presented upon exit from Malaysia.

Regarding stay conditions, holders of single-entry visas are not permitted to leave and re-enter Malaysia without obtaining a new visa, while multiple-entry visas allow multiple entries within the validity period. Each stay is limited to a maximum of 30 days, and extensions may be granted at the discretion of the Immigration Department. Importantly, business visa holders are prohibited from engaging in employment or receiving wages from Malaysian entities.

Fees, validity, and processing time

Bringing dependents and family members

Employment Pass holders, particularly those in Categories 1 and 2, may bring eligible family members to Malaysia through dependent passes or alternative family visas.

Eligible dependents:

• Spouse: Legal spouse authorized to accompany Employment Pass holder.
• Children: Unmarried children under 18 years (some categories permit up to 21 years if pursuing full-time education).
• Elderly Parents: Aged 60 years and above, lacking family support in home country (Long-Term Social Visit Pass pathway).
• Adult Children: Unmarried children over 18 pursuing tertiary education (via Long-Term Social Visit Pass).

Dependent Pass (DP)

Dependent Passes enable family members to reside with Employment Pass holders:

• Validity: Matches principal's employment pass duration.
• Applications: Submitted simultaneously with or after principal's pass approval.
• Processing time: 3–6 weeks typically.
• Fee: RM500 per dependent (as of September 2024 revised rates).
• Work authorization: Dependent Pass itself does not authorize employment; dependents seeking employment must apply for separate work authorization.

Long-Term Social Visit Pass (LTSVP)

For family members ineligible for Dependent Passes (e.g., adult children, extended family):

• Validity: 6 months to 5 years (aligned with principal's circumstances).
• Eligibility: Extended family members, adult children in education, parents, siblings (subject to circumstances).
• Fee: RM 450.
• Processing time: Up to 14 working days.
• Work authorization: LTSVP itself does not permit employment; work endorsement must be separately obtained.

Work Authorization for Dependents

Family members holding Dependent Passes or LTSVP wishing to work must:

• Apply for work endorsement on existing pass (preferred pathway)
• Or: Transfer to separate Employment Pass (if meeting EP eligibility criteria)
• Obtain employer sponsorship for work authorization
• Undergo separate approval process through ESD

Employer responsibilities and compliance obligations

Employers hiring foreign workers bear significant legal and administrative responsibilities: