Hiring Foreigners in Malaysia: A Guide for Tech Companies

MDEC's Expats Service Centre serves companies with Malaysia Digital (MD) status, or MSC Malaysia status, that are in operation and comply with the conditions of that status. It also serves ICT companies without MD status that are fully operational and use ICT as their core business, subject to a minimum paid-up capital, a physical office and an assessment by MDEC. Companies in non-qualifying activities, such as trading, staffing and staff augmentation, do not qualify.

On MDEC's MD route, a foreign knowledge worker holds a bachelor's degree in any field, or a diploma in multimedia or ICT, or a specialised ICT certification, with at least 2 years of relevant experience, or holds a professional, executive, management or technical role in IT-enabled services. On the non-MD route the experience requirement for diploma and certificate holders is 5 years. MDEC also lists exemptions for Global Business Services and Creative Content roles.

MDEC's published charge is RM2,160 per applicant for an MD company and RM3,024 per applicant for a non-MD company, for new and renewal applications. A Dependant Pass or Social Visit Pass is RM540 per applicant, and an amendment of an approval letter is RM108. Immigration's own fees are on a separate Immigration schedule that MDEC links to, and this page does not quote them. Confirm the current amounts with MDEC before budgeting.

MDEC states about 14 working days for an FKW Projection Request, about 7 working days for an individual FKW application, and 10 working days for the JTKSM section 60K approval that comes first. Endorsement takes 3 working days for an applicant already in Malaysia, and immediate endorsement at ESC KLIA Terminal 1 for an applicant arriving from abroad. A first-time MD company subscription takes about 2 working days, and a non-MD registration about 30 working days. These are stated service times for complete submissions, not guarantees.

Section 60K of the Employment Act 1955 requires employers to get approval from the Department of Labour Peninsular Malaysia (JTKSM) before employing an expatriate. It applies to private sector employers in Peninsular Malaysia and Labuan under amendments effective 1 January 2023, applications go through Xpats Gateway from 1 July 2025, and it is required for new Employment Pass applications, valid for 12 months, and decided in 10 working days. Xpats Gateway states that operating without the required approval carries a fine of up to RM100,000, imprisonment of up to five years, or both.

For new Employment Pass applications from 1 July 2025, Xpats Gateway requires the MyFutureJobs advertisement acknowledgement letter from PERKESO, with exemptions for renewals, in-country position or category changes, and positions on PERKESO's exemption list. PERKESO decides, and employers must follow its advertising guidelines. MDEC's pages describe this as SOCSO approval after advertising the vacancy.

It is the request through the eXpats system for the number of foreign knowledge workers a company may hire. Under MDEC's June 2026 announcement, a company seeking new or additional FKW headcount files the request with all mandatory documents, MDEC reviews it, and the FKW Approval Committee decides. Only approved projection headcount allows the company to file individual FKW applications.

No. MDEC lists staff augmentation among the activities that do not qualify, describing it as resource requests through a request form, projects without project managers, pricing by resource tables or work permit costs, and resources with no service level commitment beyond available hours. MDEC states that it may check for these activities and revoke passes or MD status at any time.

MDEC states that companies are discouraged from nominating a third-party agent as the company's authorised person. The authorised person is named in the Authorised Person Letter on company letterhead and signs up through the company's own account. A consultant can still help prepare documents, check them against MDEC's checklist and advise on the route, while the company's own authorised person submits. Xpats Gateway separately says a Private Employment Agency may submit section 60K applications as an authorised representative, although its own wording on who counts as one is unclear.

For a new Employment Pass, MDEC states that the applicant must be outside Malaysia when the Approval Letter is issued. The applicant may enter Malaysia only after obtaining the Reference Visa or eVisa, if one is required for the applicant's nationality. Someone who needs a visa must obtain a Visa with Reference while abroad.

MDEC states that the spouse and children under 18 are eligible for a Dependant Pass, and unmarried children over 18, parents and parents-in-law are eligible for a Long-Term Social Visit Pass. MDEC's charge is RM540 per applicant for each. Immigration's revised policy FAQ adds that Category III Employment Pass applications submitted from 1 June 2026 are subject to the revised policy for dependants, while passes issued under the earlier policy stay under the old rule, which does not permit dependants.

Immigration's FAQ describes it as a structured plan to prepare local employees to take over expatriate roles within the employment period, which may include role transfers, training, knowledge transfer and a timeline. MDEC's June 2026 announcement says companies are encouraged to submit succession plan information now, and that an annual succession plan declaration takes effect on 1 January 2027, as communicated by the Ministry of Home Affairs.

Not through MDEC unless it fits MD status in operation or the non-MD ICT rules. Other companies use other routes, such as Immigration's ESD or MIDA. This page covers the MDEC routes for tech companies.