Employment policies of a country affect the planning and operation of businesses that expect and require expatriate employees. For business operators, local or foreign, who plan to register company in Malaysia, paying attention to the current local employment polices, as well as getting the latest amendments, ensures that plans for human resource allocation and other administration processes will be carried out smoothly, and provisions for possible obstables made early enough.
Company Registration Malaysia
To prioritise job opportunities for locals and reduce unemployment rate, with effect from 1 January 2021, Malaysia companies that intend to expatriate employees are required to advertise the job vacancy for at least 30 days in the MYFutureJobs portal, among other requirements, before they are approved for the hiring of expatriate employees under the Employment Pass. Among the other requirements are:
- conducting interviews with short-listed local candidates;
- and if local candidates are found unsuitable, completing and submitting relevant reports to the Social Security Organisation (SOCSO) to obtain clearance from the Expatriates Hiring Committee.
The advertisement in the MYFutureJobs portal is mandatory. However, there are two types of exemptions: conditional and automatic.
Specialised skilled positions such as specific and unique skills as well as strategic competencies to carry out tasks stipulated by employers are under the conditional exemption category, which requires Form PDKK to be submitted for consideration from SOSCO for specialised skilled positions to be exempted.
Automatic exemptions are available for the following:
- C-suite and key positions in an organisation
- Expatriate with monthly basic salary of at least MYR 15,000
- Expatriate employee working for regional / representative office in Malaysia
- Investor / shareholder / owner of company
- Internal transfer / secondment arrangement
- Foreign recruited staff for approved international organisation
- Athletes / professional sportsman
- Renewal of EP
Special exemptions can also be applied for highly-skilled positions.
Contact VentureHaven Malaysia for more information regarding employing expatriates or for any questions related to company registration Malaysia.