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Malaysia has introduced a new residence pass that enables qualified foreign nationals to reside in Malaysia on a long-term basis and work for any employer. Currently, the new residence pass is open to existing employment pass holders who have worked in Malaysia for three years, but it is expected to become available to other foreign nationals in the near future.
Malaysia launched a new residence pass program on April 1, 2011 that enables qualified foreign nationals and their dependent family members to live and work in Malaysia on a long-term basis and work for any Malaysian employer without sponsorship. They may also change employers without obtaining a new employment pass. Residence passes are issued for an initial period of five to ten years and may be renewed.
Spouses and children under 18 years old are eligible to receive residence passes as derivative beneficiaries. In addition, spouses are eligible for similar benefits as the principal pass holders, including authorization to work for any employer.
The new residence pass program is designed to attract and retain highly skilled foreign professionals and individuals whose demonstrated achievements and expertise in their field are likely to benefit Malaysia. The program does not lead to permanent residence or citizenship in Malaysia.
Employers’ Role in the Residence Pass Application Process
Although a residence pass application is made by an individual and does not require employer sponsorship, a residence pass applicant must provide a no-objection letter from the employer that sponsored his or her employment pass. In addition, once a residence pass application is approved, the sponsoring company must apply to cancel or shorten the validity of the foreign national’s employment pass before the residence pass can be endorsed into his or her passport.
Residence Pass – Eligibility and Documentary Requirements
To qualify for a residence pass, foreign nationals must present the following evidence of eligibility:
• A valid employment pass and evidence of employment in Malaysia for at least three consecutive years;
• A bachelor’s or postgraduate degree, diploma or professional certificate from an educational institution recognized by the Malaysian government;
• Evidence of at least five years of total employment experience;
• Evidence that the foreign national earns a total annual salary of MYR144,000 (approximately USD47,550) or higher;
• A local individual sponsor who is a Malaysian citizen 21 years or older; and
• A Malaysian Income Tax File Number and evidence of income tax payments in Malaysia for a period of at least two years.
While the program is open to employment pass holders in all industries, the Malaysian government has expressed a preference for receiving applications from foreign nationals engaged in the following industries: Aeronautics, Agriculture, Biotechnology, Business Services, Communications, Education, Electronics, Financial Services, Healthcare, Information Technology, Oil, Gas, Energy, Palm Oil, Tourism, and Wholesale and Retail Services. A recommendation letter issued by the Malaysian regulatory agency with jurisdiction over the foreign national’s industry or field of expertise is recommended but not required.
The Malaysian government has announced that it will extend the residence pass program to additional categories of foreign nationals from outside of Malaysia and may include former Malaysian citizens who are based overseas as an eligible group. Currently, Malaysian authorities are processing residence pass applications in approximately 21 working days if submitted online, and may take longer if filed using paper applications.
Malaysia launched a new residence pass program on April 1, 2011 that enables qualified foreign nationals and their dependent family members to live and work in Malaysia on a long-term basis and work for any Malaysian employer without sponsorship. They may also change employers without obtaining a new employment pass. Residence passes are issued for an initial period of five to ten years and may be renewed.
Spouses and children under 18 years old are eligible to receive residence passes as derivative beneficiaries. In addition, spouses are eligible for similar benefits as the principal pass holders, including authorization to work for any employer.
The new residence pass program is designed to attract and retain highly skilled foreign professionals and individuals whose demonstrated achievements and expertise in their field are likely to benefit Malaysia. The program does not lead to permanent residence or citizenship in Malaysia.
Employers’ Role in the Residence Pass Application Process
Although a residence pass application is made by an individual and does not require employer sponsorship, a residence pass applicant must provide a no-objection letter from the employer that sponsored his or her employment pass. In addition, once a residence pass application is approved, the sponsoring company must apply to cancel or shorten the validity of the foreign national’s employment pass before the residence pass can be endorsed into his or her passport.
Residence Pass – Eligibility and Documentary Requirements
To qualify for a residence pass, foreign nationals must present the following evidence of eligibility:
• A valid employment pass and evidence of employment in Malaysia for at least three consecutive years;
• A bachelor’s or postgraduate degree, diploma or professional certificate from an educational institution recognized by the Malaysian government;
• Evidence of at least five years of total employment experience;
• Evidence that the foreign national earns a total annual salary of MYR144,000 (approximately USD47,550) or higher;
• A local individual sponsor who is a Malaysian citizen 21 years or older; and
• A Malaysian Income Tax File Number and evidence of income tax payments in Malaysia for a period of at least two years.
While the program is open to employment pass holders in all industries, the Malaysian government has expressed a preference for receiving applications from foreign nationals engaged in the following industries: Aeronautics, Agriculture, Biotechnology, Business Services, Communications, Education, Electronics, Financial Services, Healthcare, Information Technology, Oil, Gas, Energy, Palm Oil, Tourism, and Wholesale and Retail Services. A recommendation letter issued by the Malaysian regulatory agency with jurisdiction over the foreign national’s industry or field of expertise is recommended but not required.
The Malaysian government has announced that it will extend the residence pass program to additional categories of foreign nationals from outside of Malaysia and may include former Malaysian citizens who are based overseas as an eligible group. Currently, Malaysian authorities are processing residence pass applications in approximately 21 working days if submitted online, and may take longer if filed using paper applications.
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