Since the 1970s, the government has focused on diversifying the economy and accelerating industrial growth to meet employment needs and the objectives of the New Economic Policy (NEP). The focus at that time was on export-oriented and labor-intensive industries.
Later, in the 1980s, the national industrialization program underwent further development, focusing on heavy industries aimed at strengthening the country’s industrial foundation and enhancing citizens’ technical skills. The government played a direct role in planning, implementing, financing, and managing heavy industries as the private sector could not bear the high costs.
As a member country of the International Labour Organization (ILO), Malaysia has a responsibility to comply with 11 indicators of forced labor, including providing conducive accommodation for workers in need.
In line with this, the authorities have made it mandatory for employers intending to hire foreign workers to fully comply with the Minimum Standards of Housing, Accommodation, and Employee Facilities Act 1990 (Act 446).
Types of Passes for Foreign Nationals
Foreign nationals visiting Malaysia must obtain a pass at the entry point in addition to the required visa to allow for a temporary stay in Malaysia. All types of passes for foreign nationals can be applied for at the nearest Malaysian Immigration Department.
All applications must be sponsored in Malaysia, where the sponsor agrees to be responsible for the accommodation and repatriation of visitors from Malaysia if necessary.
The passes issued upon the arrival of foreign tourists are as follows:
Short-Term Social Visit Pass
The Social Visit Pass is granted to foreign nationals for social or business visits. This includes:
- Owners and company representatives entering Malaysia to attend meetings, conferences, or company seminars, audit company accounts, or ensure smooth operations.
- Investors or businesspeople exploring business and investment opportunities or setting up manufacturing facilities.
- Foreign representatives introducing goods for manufacturing in Malaysia but not engaged in direct sales or distribution.
- Property owners negotiating, selling, or renting property.
- Foreign journalists or mass media representatives covering events in Malaysia.
- Athletes or participants involved in sports events.
- Students taking exams at local universities or participating in goodwill visits.
- Visitors engaging in other approved activities as per the Director-General of Immigration.
These passes cannot be used for employment or supervising the installation of new machinery or factory construction.
Long-Term Social Visit Pass
The Long-Term Social Visit Pass can be issued to foreign nationals staying temporarily in Malaysia for at least six months. Extensions may be granted if the visitor qualifies and meets specific conditions.
Foreign spouses of Malaysian Long-Term Social Visit Pass holders can apply for any form of employment, business, or professional work without changing their pass status to an Employment Pass or Temporary Employment Pass.
Temporary Employment Visit Pass
This pass is issued to foreign nationals entering the country for employment not exceeding 24 months.
Employment Pass
The Employment Pass is issued to foreign nationals entering the country for employment lasting at least two years. Work permits are issued after applicants receive approval from the relevant authorized agencies.
Professional Visit Pass
This pass is issued to foreign nationals for purposes involving short-term contracts with any agency. Eligible categories include:
- Professional Workers/Volunteers:
- Researchers recognized by the Malaysian government, members of international organizations, lecturers, and specialists in machine installation or maintenance.
- Individuals or groups providing technical training and other related services.
- Artists:
- Artists entering for filming or performances to promote albums, new products, etc.
- Religious Preachers (Islamic or other faiths):
- Individuals entering for religious purposes.
The validity of this pass varies but does not exceed 12 months at any one time. Applications must be submitted through the relevant agency.
Benefits for Foreign Workers in Malaysia
Foreign workers contributing to the Social Security Organization (Perkeso) are eligible for benefits under the organization in the event of a workplace accident. Foreign workers contributing to Perkeso are entitled to benefits under the Foreign Workers Employment Injury Scheme, and in cases of death, dependents may claim Dependent Benefits.
In accordance with the enforcement of Section 60K of the Employment Act 1955, effective January 1, 2023, any employer intending to hire foreign workers must obtain prior approval from the Department of Labour of Peninsular Malaysia (JTKSM) before proceeding with subsequent processes at related agencies.
Employers seeking a well-organized human resource management system for both local and foreign employees can acquire professional services from MySyarikat.
