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HOW DO I EMPLOY AN EXPATRIATE PERSONNEL ?

To employ expatriate personnel, your company must have foreign paid-up capital of US$2 million and above. This will automatically qualifies your company to employ 5 expatriate personnel including those for key posts. Upon request, additional expatriate posts will be given when necessary.

Where your company has less than US$2 million of foreign paid-up capital expatriate posts will only be considered on the basis of the following :

  • Where the foreign paid-up capital is at least RM500,000, key posts can be considered. However, this figure is only a guideline and the number of key posts allowed depends on the merits of each case.
  • Expatriates may be employed up to a maximum of 10 years for executive posts which require professional qualifications and practical experience, subject to the condition that Malaysians are trained to ultimately take over the posts.
  • Expatriates may be employed up to a maximum of 5 years for non-executive posts which require technical skills and experience, subject to the condition that Malaysians are trained to ultimately take over the posts.

Where an expatriate officer is transferred from one post to another post within the same company, new employment pass is not required. Amendment will be made to the original employment pass to reflect the change in post.

Where a new expatriate officer will be replacing another expatriate officer, new employment pass must be obtained.

Before an expatriate applies for the employment pass at the Immigration Department, the company must firstly apply for and obtain an approval for an expatriate post or position from the following agencies :

Employment passes are valid for the period of time as approved for the post. However, employment passes will be given on a 5-year renewable basis for key posts holders, except under the circumstances where :

  • the expatriate's passport validity is less than 5 years
  • the expatriate's employment contract agreement is less than 5 years and
  • the services of the expatriate are required for less than 5 years by the employer

The company's application for approval of its project and the applications for expatriate posts can be submitted to the Malaysian Industrial Development Authority (MIDA) simultaneously.

This procedure applies to expatriate personnel required for :

  • establishing new projects which companies propose
  • diversification of products where existing companies propose to manufacture additional products
  • expansion of projects where existing companies propose to expand their production capacities

Where companies do not fall under the above categories, applications for extension of expatriate posts or for additional expatriate posts shall be submitted directly to the Immigration Department headquarters in Kuala Lumpur, Malaysia.

There is no levy on expatriate posts. However, a processing fee of RM300 per year or part thereof for key posts and RM200 per year or part thereof for management or professional or technical posts will be imposed.

Effective 1st August 1998, all expatriates earning less than RM2,500 per months must contribute 11% of their monthly wages to the Employees Provident Fund (EPF) while the employers are required to contribute RM5 per employee per month.



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