MALAYSIA – New Requirements for Certain Immigration Categories and Sponsoring Employers
by Fragomen, Del Rey, Bernsen & Loewy, LLP
01/15/2009
Minimum Requirements
From January 1, 2009, the Malaysian government has raised the salary and paid-up capital requirements for Employment Pass and Visit Pass (Temporary Employment) (VPTE) applications. It has also increased the minimum age for foreign national applicants in the information technology (IT) sector.
The minimum monthly salary, exclusive of allowances, was increased from RM3,000 to RM5,000.
The minimum paid-up capital requirements for sponsoring companies in Malaysia are:
RM250,000 for 100% Malaysian-owned companies, from RM150,000 previously;
RM350,000 for companies with Malaysian and foreign ownership, from RM200,000 previously; and
RM500,000 for 100% foreign-owned companies, from RM250,000 previously.
Applicants in the IT sector must be at least 23 years old, with relevant work experience of at least two years. Previously, the minimum age was 21 years old with no work experience requirement. For all other sectors, the minimum age remains at 27 years old.
Accompanying Spouses
Spouses who are Dependant Pass or Long Term Social Visit Pass holders are now permitted to take up paid employment without obtaining an Employment Pass or VPTE, provided that such permission is endorsed on their passports by the Malaysian Immigration Department (MID). This change took effect on November 20, 2008.
Spouses who hold Dependant Passes may engage in charity work, subject also to endorsement of their passports by the MID. "Charity work" refers to voluntary unpaid work in one of the following places only: retirement homes, disabled children's shelters, foster children's homes, charity homes, and Red Cross associations.
Husbands may now apply for Dependant Passes for the same validity period as their wives' Employment Passes. Previously, they were only eligible for a Long Term Social Visit Pass of up to 12 months, renewable for the duration of the wife's Employment Pass.
The MID has not announced an implementation date for the above two changes. However, Fragomen has confirmed that both are now in effect.
Special Requirements for Distributive Trade Companies
Companies with foreign ownership that are engaged in distributive trade are required to obtain a wholesale and retail trade (WRT) license from the Malaysian Ministry of Domestic Trade and Consumer Affairs (MDTCA) before they can apply for an Employment Pass or VPTE. "Distributive trade" refers to wholesale and retail trade of goods and services. Other companies with foreign ownership that are not engaged in distributive trade do not require a WRT license but must obtain an approval or support letter from MDTCA before they can apply for an Employment Pass or VPTE. The MTDCA requirement affects only applications to the MID and not those filed with other Malaysian government agencies, depending on the sector or industry of the sponsoring company. The requirement took effect on December 1, 2008.
Fragomen has been advised that the Malaysian government is preparing new guidelines for all sponsoring companies with foreign equity, whether engaged in distributive trade or otherwise. We will continue to monitor developments in this area and issue updates as necessary.
In preparing this article, Fragomen has worked closely with the law firm of Shearn Delamore & Co. in Kuala Lumpur, Malaysia. The content herein is provided for informational purposes only.
If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen Global Immigration Services or send an email to APCCInitiations@fragomen.com.
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