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Hiring Expatriates in Malaysia: Compliance Checklist for Employers

A checklist of what the employer must have in place before and after hiring an expatriate.


Quick answer: To hire an expatriate in Malaysia, the employer registers with Immigration's ESD or holds MIDA approval, meets the paid-up capital requirement, gets the post approved, pays at least the category minimum basic salary, signs an IRB-stamped contract, and for MIDA applications obtains the JTKSM approval under Section 60K of the Employment Act 1955 and advertises on MyFutureJobs unless exempt. After approval the employee's pass must be endorsed within 30 days, and Category II and III roles need a succession plan from 1 January 2027.

Key takeaways

  • Register with ESD or hold MIDA approval, and meet the paid-up capital requirement.
  • Pay at least the category minimum basic salary in ringgit.
  • Stamp the contract with IRB, within three months of the application.
  • MIDA route: JTKSM approval (Section 60K) and MyFutureJobs advertisement, unless exempt.
  • Endorse the pass within 30 days and plan the succession plan from 2027.

Before You Apply

  • Company registered with ESD, or holds the MIDA approval for the MES route.
  • Paid-up capital meets the minimum for the ownership structure.
  • A director has signed the Letter of Undertaking.
  • The post is in the approved projection, or a position request is submitted.
  • Basic monthly salary meets the category minimum and is paid in ringgit by the Malaysian company.
  • Employment contract signed by both parties, stamped by IRB, within three months of stamping.
  • Job description on letterhead with at least three distinct tasks.
  • Academic certificates and translations prepared as required.
  • Passport valid for more than 12 months with at least six empty pages.

MIDA Route Extras

Requirement Detail
JTKSM approval, Section 60K of the Employment Act 1955 Compulsory, unless exempt for a renewal with no change to job title, description or incumbent
MyFutureJobs advertisement Compulsory, unless exempt for the same renewal case or for investors, shareholders and owners
Organisation chart Latest chart
Employment contract Stamped by LHDN
Application channel MIDA Expatriate System for MIDA applications from 16 March 2026

After Approval

  • Visa With Reference arranged if needed.
  • Pass endorsed within 30 days.
  • Dependants' applications filed if the employee is bringing family.
  • Authorised personnel details kept current in ESD Online.
  • Internship obligations (1:3 internship policy) and MyNext onboarding completed where they apply.
  • Succession plan prepared for Category II and III roles from 1 January 2027.

Ongoing

Obligation Note
Renewals Submit up to three months before expiry and settle outstanding tax in full
Changes to shareholding Notify ESD in writing
Change of employer or end of service Shorten or cancel the ePASS
Accurate information Neglect or misrepresentation can lead to legal action under the Immigration Act 1959/63

Need a pass sorted out? WhatsApp us. We will check your case before you apply.

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Mistakes

⚠️

Hiring before the pass is issued

The employee must not work first.

⚠️

Unstamped or stale contract

It is not accepted.

⚠️

Forgetting the MIDA extras

JTKSM approval and MyFutureJobs apply unless exempt.

⚠️

Ignoring ongoing duties

Renewals, changes and cancellations are the company's job.


How We Help

What we handle for you

Before you apply

  • Check that your company meets the requirements and that the post and salary fit the right category.
  • Prepare your business plan and financial plan from your company idea or business model, where the application needs one.

Application

  • Prepare and submit the pass application and respond to Immigration's queries.

Why companies choose us

End-to-end under one roof

  • We handle company incorporation, accounting and payroll as well as expatriate pass applications, 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

Quick answers.

What must an employer do to hire an expatriate in Malaysia?

Register with ESD or hold MIDA approval, meet capital, get the post approved, meet the salary minimum and file a complete application.

What is JTKSM approval?

Approval under Section 60K of the Employment Act 1955, required for MIDA applications unless exempt.

Is a MyFutureJobs advertisement needed?

For MIDA applications, yes, unless exempt.

Which contract stamping is needed?

ESD requires an IRB-stamped contract within three months of stamping. MIDA's guidelines refer to LHDN stamping.

How much capital is needed?

RM250,000, RM350,000 or RM500,000 by ownership, with RM1,000,000 for foreign-owned WRT.

Can the employee start before the pass is issued?

No.

How long do I have to endorse?

30 days.

Is a succession plan needed?

Mandatory for Category II and III from 1 January 2027.

What is the 1:3 internship policy?

ESD has reminded companies employing expatriates to meet internship requirements and onboard on MyNext. Check the current ESD notice for details.

What is the penalty for false information?

ESD's guidebook warns of legal action under the Immigration Act 1959/63.

Do I need to update authorised personnel?

Yes. ESD asks organisations to keep them complete and up to date.

Can you manage the whole process?

Yes. We handle incorporation, payroll and the pass application together.



Sources

Official sources

This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with the Immigration Department (ESD) and MIDA, or with us, before you act. Checked November 2026.


Talk To Us Now

Hiring or relocating an expatriate? We will check your case first. All consultations are by video call.