A new employment pass category will be introduced this month in Malaysia. The employment pass (Category III) is expected to be implemented on July 15th. It will become available to foreign nationals working on contracts of 12 months or less and who have monthly salaries ranging from 2,500 – 4,999 RM (about $665 – $1,330 USD).

This new pass will allow businesses to employ qualified foreign nationals for less than the standard minimum salary of RM 5,000. However, Category III passes might take longer to obtain because companies are required to secure a letter from an appropriate monitoring agency, exempting them from paying the normal minimum wage. If the applicant works in an economic sector that is unregulated, the letter must be obtained through the Ministry of Home Affairs. The application, along with the letters, would be filed online through the Expatriate Services Division portal.

Category III passes will not allow the foreign national to sponsor dependents or hire foreign housekeepers. The passes will be subject to review and can be renewed twice.

Please note that this is general information only and not intended as advice on a specific matter. Please feel free to contact Fakhoury Global Immigration directly with questions exclusive to your situation. This news alert may have been prepared using information from Peregrine Immigration Management, which is licensed to Fakhoury Global Immigration.