eNewsletter

In early April 2011, the government of Malaysia launched a new immigration pass to attract highly-skilled foreign professionals to work in the country. This immigration pass, called the Residence Pass, is applicable to foreign professionals or expatriates looking to reside and work in Malaysia for 5 to 10 years. The Residence Pass is also issued to the foreign professionals/expatriates’ spouses and their children who are 18 years and below. 

Currently, most expatriates in Malaysia hold the Employment Pass that is tied to an employer. Unlike the Employment Pass, the Residence Pass is not tied to any employer and also allows the expatriates’ spouse to work in Malaysia. The Residence Pass, however, does not entail Permanent Resident status nor the right to Malaysian citizenship.

The Ministry of Home Affairs in Malaysia started receiving applications for the Residence Pass from April 1, 2011. Foreign professionals/expatriates can apply online for the Residence Pass via http://www.expats.com.my/rp.

Returning Expert Program To Attract Malaysians Working Abroad

In April 2011, the Malaysian government also announced revisions to the existing Returning Expert Program (REP), to encourage the return of Malaysian professionals working abroad. Some of the new incentives offered under the REP include a flat Malaysian income tax rate of 15% for 5 years, instead of the progressive income tax rates that exist now.

The qualifying criteria for the REP have also been changed to emphasize more on work experience and not just education qualifications. For example, Malaysian diploma holders (Malaysians that do not have undergraduate degrees) with at least 10 years of good foreign work experience in selected industries can qualify for the REP.  Previously, the minimum qualification for the REP was an undergraduate degree in a relevant field.