Quick answer: A 100% foreign-owned IT Sdn Bhd can apply for Employment Passes through MDEC. On the non-MD route MDEC states a minimum paid-up capital of RM500,000 for a 100% foreign-owned company, a physical office and an active ICT business. On the MD route MDEC's page states no paid-up capital amount, but the company must hold MD or MSC Malaysia status and be in operation. In both cases the company needs section 60K, MyFutureJobs and approved projection headcount.
- Non-MD route: RM500,000 minimum paid-up capital if 100% foreign owned.
- MD route: no capital figure stated on MDEC's MD page.
- Physical office and active operations required on the non-MD route.
- Same approvals: section 60K, MyFutureJobs, projection.
- MDEC charge: RM2,160 (MD) or RM3,024 (non-MD).
Foreign Ownership and the Two Routes
| MD status company | Non-MD ICT company | |
|---|---|---|
| Who it is for | Company with MD (or MSC Malaysia) status that is in operation and complies with its conditions | Malaysian-incorporated ICT company without MD status, fully operational, ICT as core business |
| Paid-up capital | No amount stated on MDEC's MD page | RM250,000 (100% local), RM350,000 (local and foreign), RM500,000 (100% foreign) |
| Office | Not stated on MDEC's MD page; the company must be in operation | Physical office in Malaysia required |
| First-time set-up | About 2 working days | About 30 working days, with site visit and possible interview |
| Employment Pass MDEC fee | RM2,160 | RM3,024 |
| Diploma holder qualifies with | 2 years' relevant multimedia or ICT experience | 5 years' relevant experience |
Non-MD Capital by Ownership
| Ownership | Minimum paid-up capital |
|---|---|
| 100% locally owned | RM250,000 |
| Local and foreign owned | RM350,000 |
| 100% foreign owned | RM500,000 |
What MD Status Adds
MD status gives access to MDEC's MD route with a first-time subscription of about 2 working days and an Employment Pass charge of RM2,160. The company must be in operation and comply with the conditions of its status, and the foreign knowledge worker's activities must match the activities in the approval letter. Our Malaysia Digital guides cover the status itself, including foreign ownership conditions.
Planning Steps for a Foreign Parent
Confirm the structure
Ownership affects the non-MD capital figure.
Choose the route
MD status or non-MD ICT.
Prepare capital and office
Non-MD needs both before registration.
Plan the first hires
Section 60K, MyFutureJobs and projection.
Prepare succession planning
MDEC encourages succession plan information now.
Hiring a foreign IT professional? WhatsApp us. We will check your case before you apply.
Intra-Group Assignments
When the foreign parent sends its own staff, the Employment Pass still requires a contract of service with the Malaysian company. See our guide on moving staff from an overseas office to Malaysia.
Example: Capital and Route Choice
Example. A foreign parent plans a Malaysian subsidiary with RM300,000 paid-up capital. That is below the RM500,000 non-MD minimum for a 100% foreign-owned company, so the non-MD route is not open without raising capital. If MD status is approved first, MDEC's MD page states no capital amount. The company would compare raising capital against waiting for MD status.
Common Mistakes
Capitalising to the local-owned figure
A 100% foreign-owned company needs RM500,000 on the non-MD route.
Ignoring office and operations
The non-MD route needs a physical office and active business.
Assuming MD status removes all conditions
The company must keep meeting its status conditions.
How We Help
What we handle for you
Before you apply
- Check which MDEC route your company fits, MD status or non-MD ICT, and whether the post, salary and category match.
- Prepare the JTKSM, MyFutureJobs and supporting documents with your team and review them against MDEC's checklist.
Application
- Prepare the FKW projection and pass application for your company's authorised person to submit, and help you respond to MDEC and Immigration queries.
- MDEC states that companies are discouraged from nominating a third-party agent as the authorised person, so the submission stays under your own account.
Why companies choose us
End-to-end under one roof
- We handle company incorporation, Malaysia Digital status, accounting and payroll as well as expatriate pass preparation, so your structure, payroll and hiring plan stay aligned.
- The company is set up correctly from day one.
We check before you invest
- We confirm eligibility, including whether you can hire the expatriates you need, before a foreign investor decides to incorporate in Malaysia.
- Neutral Consulting PLT is a Kuala Lumpur firm led by a Managing Partner who is a member of the Malaysian Institute of Accountants.
Frequently Asked Questions
Straight answers to the questions we hear most.
Which companies can apply through MDEC?
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.
What does an Employment Pass cost through MDEC?
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.
How long does an Employment Pass application through MDEC take?
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.
Who counts as a foreign knowledge worker?
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.
What is section 60K approval?
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.
Do we have to advertise the job on MyFutureJobs?
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.
What is an FKW Projection Request?
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.
What is a succession plan, and is it compulsory?
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.
Can we use a consultant or agent for the application?
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.
Does staff augmentation qualify?
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.
Does 100% foreign ownership affect MD status?
Our Malaysia Digital guides cover the status conditions. MDEC's Expats pages reviewed state no ownership condition for the MD route.
Can the foreign parent's staff be seconded?
The Employment Pass requires a contract of service with the Malaysian company. Whether a secondment fits depends on the arrangement, so ask MDEC.
Is a higher capital figure needed for more hires?
The pages reviewed state capital by ownership category, not by headcount.
Must the capital be paid up before MDEC registration?
MDEC's non-MD page states a minimum paid-up capital by equity category as an eligibility requirement. Prepare evidence before registering.
Sources
Official sources
- MDEC, Pre-application process for non-MD companies
- MDEC, Pre-application process for MD companies
- MDEC, Expats Service Centre: services and eligibility
- MDEC, Application process for non-MD companies
- MDEC, FKW declaration, headcount and additional requirements (June 2026)
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with MDEC, the Immigration Department (ESD) and MIDA, or with us, before you act. Checked November 2026.
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