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MDEC Employment Pass: How Malaysia Digital and Non-MD ICT Companies Apply

How MD and eligible non-MD ICT companies hire foreign knowledge workers through MDEC’s Expats Service Centre, step by step.

Quick answer: MDEC's Expats Service Centre handles Employment Passes and dependant passes for foreign knowledge workers of Malaysia Digital (MD) or MSC Malaysia status companies, and of active ICT companies without MD status that meet MDEC's conditions. Non-MD companies need a physical office, paid-up capital of RM250,000 to RM500,000 depending on ownership, and an assessment of about one month. Since 3 June 2026 an FKW Projection Request must be approved before individual applications. MDEC charges RM2,160 per Employment Pass applicant for MD companies and RM3,024 for non-MD companies.

Key takeaways

  • You do not need MD status. Eligible ICT companies can use the non-MD route.
  • Non-MD conditions: active ICT business, a physical office and RM250,000 to RM500,000 paid-up capital by ownership.
  • Fees: RM2,160 (MD) or RM3,024 (non-MD) per Employment Pass applicant, and RM540 per dependant pass.
  • From 3 June 2026 an approved FKW Projection Request is needed before individual applications.
  • Only basic salary counts towards the category minimum.

What Is the MDEC Expat Service?

What is the MDEC expat service?

The Expats Service Centre at MDEC was established in 2007 as a one-stop hub for the foreign knowledge worker (FKW) employment needs of Malaysia Digital companies and ICT companies in Malaysia. It processes and approves passes before they go to the Immigration Department, and Immigration issues the Employment Pass after MDEC approves the position.

Who can use it?

Two groups. Companies with Malaysia Digital (MD) or MSC Malaysia status use the MD company route. Active ICT companies without MD status can use the non-MD route if they meet MDEC's conditions on activity, premises and paid-up capital.

What does it offer?

An online system to register, apply and track status, a helpdesk, an emergency hotline for subscribers and consultancy support from an assigned client manager.

The MDEC Expat Route in Numbers

2 routes

MD and non-MD

Malaysia Digital companies and eligible ICT companies without MD status.

RM2,160

MD fee

Per Employment Pass applicant. Non-MD companies pay RM3,024.

12 to 60 mths

Pass period

Depends on the role and the hiring company's need.

West Malaysia

Where to work

Hiring company only. Sabah and Sarawak need separate approval.

MD Company or Non-MD ICT Company?

MD company Non-MD ICT company
Who qualifies Malaysia Digital or MSC Malaysia status company in operation Company incorporated in Malaysia with an active ICT-related business and a physical office in Malaysia
Paid-up capital No minimum stated for MD route RM250,000 (100% local), RM350,000 (local and foreign) or RM500,000 (100% foreign)
Pre-application Confirm MD status, accept the invitation to subscribe, then sign the service agreement Submit documents, assessment of about one month with a site visit and possible interview, then acceptance
Knowledge worker criteria Diploma or ICT certification plus at least 2 years' experience, or a bachelor's degree, or an IT-enabled services role Diploma or ICT certification plus at least 5 years' experience, or a bachelor's degree, or an IT-enabled services role
Employment Pass fee (MDEC) RM2,160 per applicant RM3,024 per applicant
Industry limit Activities must fall within the approved activities in the MD or MSC approval letter Applicant must work for an ICT-sector company only

Hiring a foreign knowledge worker? WhatsApp us. We will check which MDEC route fits your company.

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Five Steps to Hire

1

Confirm your route

MD or MSC status, or the non-MD ICT conditions on activity, office and capital.

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2

Register and subscribe

MD: accept the invitation and sign the agreement. Non-MD: submit documents and pass the assessment.

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3

Get labour approvals

Obtain JTKSM approval under Section 60K and SOCSO approval, after advertising the vacancy on MyFutureJobs.

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4

Request headcount

Submit an FKW Projection Request in the eXpats system and wait for approval.

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5

Apply for each person

Submit the individual applications. MDEC approves the position and Immigration issues the pass.

Who and What Qualifies?

Likely to qualify

The company

  • MD or MSC Malaysia status, in operation, or an active non-MD ICT company with a physical office and the required paid-up capital.
  • Signed Expatriate Service Agreement in place.

The role

  • Bachelor's degree, or an ICT diploma or certification plus the experience MDEC asks for.
  • A professional, executive, management or technical role in IT-enabled services.

Likely to be turned away

The company

  • A dormant company, or one without a physical office (non-MD).
  • Computer retail or cybercafe business (non-MD), which KPDNKK discourages from hiring expatriates.

The activity

  • Trading, manufacturing, telecommunications, staffing, training and consultancy, advertising or staff augmentation.
  • Event management and e-news or e-publishing (non-MD list).

Employment Pass Categories at MDEC

Category Minimum basic salary (a month) Contract period listed by MDEC
Category 1 RM20,000 Up to 60 months, at MDEC's discretion
Category 2 RM10,000 Up to 24 months
Category 3 RM5,000 to RM9,999 Up to 12 months

What Does MDEC Charge?

MD company Non-MD company Who it is for
Employment Pass RM2,160 RM3,024 The foreign knowledge worker
Dependent Pass RM540 RM540 Spouse and children under 18 (non-MD: also disabled children of any age)
Social Visit Pass (long term) RM540 RM540 Unmarried children over 18, parents and parents-in-law (non-MD: children 18 to 25 and common-law spouse)
Amendment of approval letter RM108 RM108 Changes to the approved details

What to Prepare

Everything to have ready before you submit.

  • Proof of MD or MSC Malaysia status, or, for non-MD, the company registration documents for the assessment.
  • Latest e-SSM company profile showing the ICT business activity.
  • Evidence of paid-up capital and a physical office (non-MD).
  • Signed Expatriate Service Agreement and Authorised Person Letter on company letterhead.
  • JTKSM approval letter under Section 60K of the Employment Act 1955, attached to each new application.
  • SOCSO approval, obtained after advertising the vacancy on MyFutureJobs.
  • Approved projection headcount from the eXpats system before individual applications.
  • Education certificates, with original certification where required for the applicant's nationality.
  • Offer letter showing basic salary that meets the category minimum.

What Do You Need for Each Situation?

Find your situation and see what to prepare.

If you need to What to prepare Good to know
Hire a new foreign knowledge worker Company documents, offer letter, passport, education and experience proof, JTKSM and SOCSO approvals Approved FKW projection first. Fee RM2,160 (MD) or RM3,024 (non-MD).
Bring a spouse or children under 18 Marriage or birth certificates, passports, the employee's approved pass RM540 per person. Category 3 holders can bring dependants from 1 June 2026, subject to Immigration requirements.
Bring parents, parents-in-law or unmarried children over 18 Proof of relationship and passports Long-term Social Visit Pass at RM540 per person.
Name who can act for the company Authorised person letter on company letterhead Submitted with the signed service agreement when you subscribe.
Change an employee's role or category Cover letter explaining the change, new offer letter, supporting documents Not automatic. Confirm approval before the employee starts the new role or salary.
Transfer an employee to your company Cover letter, offer letter, release documents from the previous employer No MDEC fee in the fee schedule.
End an employee's pass Cancellation cover letter, passport details No MDEC fee in the fee schedule.
Renew a pass Same set as a new application, updated Renewal follows the revised salary rule from 1 June 2026.

Why Applications Get Delayed

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Incomplete documents

Incomplete applications may not be processed, and missing mandatory documents cause delays.

⚠️

No approved projection

Individual applications need an approved FKW projection first.

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Missing JTKSM letter

The JTKSM approval letter is mandatory for every new application.

⚠️

Certification mistakes

Education certificates missing the certification required for the applicant's nationality cause delays.

⚠️

Applying at year end

Year-end processing slows down, so file early.

⚠️

Entering Malaysia too early

The applicant must be outside Malaysia until the approval letter is issued.

Three Scenarios

Scenario 1. A software company with MD status wants to hire a developer abroad at a basic salary of RM12,000. It is in Category 2. The company confirms its projection headcount is approved, attaches the JTKSM approval, applies through MDEC and the applicant waits outside Malaysia until the approval letter is issued.

Scenario 2. A 100% foreign-owned software company has no MD status. It has an active ICT business, a physical office in Malaysia and RM500,000 paid-up capital. It can apply through MDEC's non-MD route, expects an assessment of about one month with a site visit, and pays the non-MD fee of RM3,024 per Employment Pass applicant.

Scenario 3. A computer retail shop wants to sponsor an expatriate. Computer retail and cybercafe businesses are excluded under KPDNKK rules, which discourage them from applying for expatriate posts, so this route is realistically closed to it.

How We Help

What we handle for you

Before you apply

  • Confirm whether the MD or non-MD route fits your company, and whether the activity, office and paid-up capital tests are met.
  • Match each role to a salary category using basic salary only.
  • Plan the FKW projection and the JTKSM and SOCSO approvals in the right order.

During the application

  • Prepare the company file, offer letters and certified education documents.
  • Submit through the eXpats system and follow up with the Expats Service Centre.
  • Handle dependant passes, amendments, transfers and cancellations afterwards.

Why companies choose us

End-to-end under one roof

  • We handle company incorporation, accounting and payroll, as well as the expatriate pass applications, so your records and your hiring plan stay aligned.
  • The paid-up capital, ownership structure and business activity that MDEC assesses are set up correctly from day one.

We check before you invest

  • We confirm whether you can hire your expatriates before a foreign investor decides to incorporate in Malaysia, so there are no surprises after the capital is committed.
  • We advise on the right route (MD or non-MD), the headcount you can realistically obtain and the salary category for each role.
  • 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 on MDEC expat passes.

What is the MDEC Expats Service Centre?

It is MDEC's one-stop centre, set up in 2007, for hiring foreign knowledge workers (FKWs) into Malaysia Digital companies and ICT companies. It approves the position, then the Immigration Department issues the pass. Subscribers get an online system, a helpdesk, an emergency hotline and an assigned client manager.

Do I need Malaysia Digital status to use the MDEC expat service?

No. There are two routes. Companies with Malaysia Digital (MD) or MSC Malaysia status use the MD route. Active ICT companies without MD status use the non-MD route once they meet MDEC's conditions on activity, office and paid-up capital.

What must a non-MD company meet?

The company must be incorporated in Malaysia, run an active ICT-related business and have a physical office in Malaysia. Minimum paid-up capital is RM250,000 if 100% locally owned, RM350,000 if owned by locals and foreigners, and RM500,000 if 100% foreign owned. These must still be met throughout the subscription and the validity of every pass.

What kinds of non-MD business qualify?

Three groups: infotech (developing and providing digital information and platform technologies), Global Business Services (services delivered with digital technologies, including centres of excellence and software development) and digital content such as animation, games and business research.

Which activities do not qualify?

Hardware and software trading, manufacturing, telecommunication services, staffing and recruitment, event management, training and consultancy, e-news and e-publishing, advertising and staff augmentation are excluded. Non-MD applicants in computer retail, including accessories, and cybercafe businesses are excluded under KPDNKK rules, which discourage them from applying for expatriate posts.

How long does the non-MD assessment take?

About one month. MDEC compares the company profile with its e-SSM business activities, visits the office and may interview senior management. Incomplete documents or follow-up questions extend the timeline.

What are the pre-application steps for an MD company?

Confirm MD status, accept MDEC's invitation to subscribe, nominate authorised persons, then upload the signed Expatriate Service Agreement and an Authorised Person Letter on company letterhead.

Who qualifies as a foreign knowledge worker?

Any one of three profiles: a bachelor's degree in any field; a multimedia or ICT diploma, or a specialised ICT certification, plus relevant experience; or a professional, executive, management or technical role in IT-enabled services. The experience needed is at least two years on the MD route and at least five years on the non-MD route.

What is an FKW Projection Request?

Since 3 June 2026, a company that wants new or additional FKW headcount first submits a projection request in the eXpats system with all supporting documents. The FKW Approval Committee decides. Individual applications can only be filed once the projection is approved.

What are the Employment Pass categories at MDEC?

Category 1 starts at a basic salary of RM20,000 a month with a contract of up to 60 months. Category 2 starts at RM10,000 with up to 24 months. Category 3 covers RM5,000 to RM9,999 with up to 12 months.

Do allowances count towards the minimum salary?

No. Under the revised salary policy, only basic salary counts. Check your offer letter against the category before applying, because a package padded with allowances will not lift the role into a higher category.

What does MDEC charge?

RM2,160 per Employment Pass applicant for MD companies and RM3,024 for non-MD companies. A Dependent Pass or Social Visit Pass costs RM540 and an amendment to an approval letter costs RM108 on both routes. Immigration Department fees are paid separately.

Where can an MDEC expat work?

An MDEC-approved Employment Pass allows work in West Malaysia for the hiring company only. Sabah and Sarawak control their own immigration, so staff who will work there need separate approval from the state authority. Taking any other paid job needs the Immigration Department's consent.

Can family members come?

A spouse and children under 18 qualify for a Dependent Pass, and on the non-MD route disabled children qualify with no age limit. Unmarried children over 18, parents and parents-in-law qualify for a long-term Social Visit Pass. On the non-MD route the Social Visit Pass also covers children aged 18 to 25 and a common-law spouse. Dependent Pass for Category 3 holders is allowed from 1 June 2026, subject to Immigration requirements.

Are JTKSM and SOCSO approvals needed?

Yes. You need JTKSM approval under Section 60K of the Employment Act 1955 and SOCSO approval, both obtained after advertising the vacancy on MyFutureJobs. The JTKSM approval letter must be attached to every new application.

How long does an individual application take?

There is no fixed processing time. Plan for the JTKSM and SOCSO approvals, the projection approval and MDEC's review, and start months before the hire's intended start date. Confirm timing with your MDEC client manager.

Does MDEC provide checklists and sample letters?

Yes. MDEC has checklists, forms and sample letters for each pass type, with separate sets for MD and non-MD companies. Ask the Expats Service Centre for the current versions before you file, because forms and requirements are updated from time to time.

Can I change a pass category or position after approval?

A change of category or position needs a request to MDEC, and approval is not automatic. Confirm with the Expats Service Centre before the employee starts a new role or salary.

How do I cancel an expatriate's pass?

Submit a cancellation request with a cover letter through the Expats Service Centre. MDEC's fee schedule has no charge for cancellation.

Can MDEC revoke a pass?

Yes. MDEC can check and revoke employment passes, or Malaysia Digital status, at any time, so keep full records for every hire.

What if my FKW Projection Request is not approved?

No resubmission or appeal route has been published. Contact the Expats Service Centre with the outcome and your supporting documents, then adjust the headcount case before filing again.

Do I need a succession plan?

Succession plan information is encouraged now, and an annual declaration becomes mandatory from 1 January 2027 under the Ministry of Home Affairs (KDN) requirement.

Do education certificates need to be certified?

It depends on the applicant's nationality. MDEC has set specific original-certification rules for some nationalities, for example Pakistani, Afghan and Nigerian applicants, where certificates are attested or certified by the Malaysian mission in the home country. Confirm the rule for your hire's nationality with the Expats Service Centre before you collect documents.

Is there a risk of delay at year end?

Yes. Year-end processing slows down for Employment Passes, dependants and Social Visit Passes. File before December.

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