GUIDELINES ON EMPLOYMENT PASS APPLICATION IN MALAYSIA

Page created by Jeanette Strickland
 
CONTINUE READING
GUIDELINES ON EMPLOYMENT PASS APPLICATION IN MALAYSIA
MALAYSIAN BIOTECHNOLOGY CORPORATION SDN BHD
                             (Company No. 691431-D)

   GUIDELINES ON EMPLOYMENT
  PASS APPLICATION IN MALAYSIA
                                   
                                           3 JULY 2009

                                         AUTHORS:
                                   MS. KANIMOLI RAMAIAH

Please note that the information contained herein is intended to be used for guidance and knowledge
only. Whilst every effort has been taken to ensure the accuracy and completeness of the contents at
   the time this Guidance Paper is issued, inaccuracies may exist due to several reasons including
  changes in circumstances and/or amendments brought about due to a change in the policy (s) or
                                    prevailing rules or regulations.

BiotechCorp does not hold out, warrant or guarantee that reliance on the information contained herein
will result in the granting or approval of the matters applied for. BiotechCorp welcomes feedback and
comments on this document. Feedback and comments can be sent to info@biotechcorp.com.my and
         by stating clearly in the subject line the document title and document Reference No.
GUIDELINES ON EMPLOYMENT PASS APPLICATION IN MALAYSIA
BiotechCorp                                                                                                       Version 1.0
     Guidelines on the Employment Pass Application                                                                     3 July 2009

TABLE OF CONTENTS .........................................................................................                   Page

1.     OBJECTIVES AND INTRODUCTION........................................................................ 1
        1.1   Objectives .................................................................................................... 1
        1.2   Introduction .................................................................................................. 1

2.     SCOPE ........................................................................................................................ 1
         2.1    Immigresen Act 1993 and Biotechcorp....................................................... 1
         2.2    Category of Expatriates............................................................................... 2
         2.3    Criteria for Biotechnology Knowledge Workers .......................................... 2
         2.4    IDM's General Requirements ...................................................................... 3

3      TYPES OF PASSES ................................................................................................... 3
         3.1  Main Passes of Work Permit....................................................................... 3
         3.2  Supporting Passes ...................................................................................... 4

4      APPLICATION PROCEDURE – Employment Pass ................................................ 5
         4.1  Procedure .................................................................................................... 5
         4.2  Employment Pass Application .................................................................... 6
         4.3  Dependents Pass Application – DP11A ..................................................... 7

5      APLICATION PROCEDURE – Professional Visit Pass.......................................... 7

6      LIST OF DOCUMENTS REQUIRED FOR SUBMISSION OF APPLICATION… ..... 8

7      FEES FOR EMPLOYMENT AND DEPENDENT PASS ............................................ 9

8      RESTRICTIONS UNDER EMPLOYMENT PASS.................................................... 10

9      IMMIGRATION PROCESS FOR EMPLOYMENT PASS ........................................ 11
GUIDELINES ON EMPLOYMENT PASS APPLICATION IN MALAYSIA
BiotechCorp                                                                  Version 1.0
  Guidelines on the Employment Pass Application                                3 July 2009

1. OBJECTIVES AND INTRODUCTION

   1.1 Objectives

          The objective of this paper is to provide interested applicants with information on
          the procedures and requirements in relation to an Employment Pass application
          in Malaysia.

   1.2 Introduction

          Biotechnology has been identified as the next engine and driver of economic
          growth for Malaysia. It is envisioned that biotechnology will be able to improve the
          quality of life, generate new wealth creation and income for both rural and urban
          population and improve the socio-economic status of people as a whole.

          To spur biotechnology growth, the Government launched the National
          Biotechnology Policy in 2005 and introduced the designation of ‘BioNexus Status’
          to qualified biotechnology companies, making them eligible for privileges and
          incentives offered by the Government.

          BioNexus Status is a recognition awarded by the Malaysian Government, through
          Malaysian Biotechnology Corporation Sdn Bhd (“BiotechCorp”), to qualified
          companies that participate in and undertake value-added biotechnology activities.

          BioNexus Status companies enjoy a set of incentives and privileges contained
          within the BioNexus Bill of Guarantees which includes the freedom to source
          knowledge workers globally.

          In this respect, the Malaysian Biotechnology Corporation (BiotechCorp) acts as a
          one-stop-centre providing support, facilitation and advisory services for a range of
          matters including immigration assistance for BioNexus status and life science
          companies in general.

2. SCOPE

   2.1 Immigration Act 1963 and BiotechCorp

          In Malaysia the entry of foreign nationals is governed by the Immigration Act 1963
          which also determines the types of employment passes that can be applied for by
          those who aspire to work in this country. The administration authority for
          immigration related matters is the Immigration Department of Malaysia (IDM),
          which is placed under the jurisdiction of the Ministry of Home Affairs.

          BiotechCorp’s support in relation to immigration matters encompass advice on
          immigration qualifying and general criteria for knowledge workers, documentation
          for pass applications, representation at IDM for DP10 submissions (upon request
          only), advice on DP 11 procedures as well as matters relating to the immigration
          requirements for family members of the expatriate.

                                                                          1
BiotechCorp                                                                   Version 1.0
  Guidelines on the Employment Pass Application                                 3 July 2009

   2.2 Category of Expatriates

           i. Key Posts – these are high (strategic) level managerial posts in foreign
              owned private companies and firms operating in Malaysia. These posts are
              important for the foreign companies to safeguard their interests and
              investments in Malaysia. Holders of these positions are responsible for
              determining the companies’ policies and direction to achieve their business
              goals.

          ii. Executive Posts – these are intermediate level managerial and professional
              posts which require academic qualifications, work experience, skills and
              competencies related to respective positions. These expatriates are
              responsible for implementing company policies and supervising staff.

          iii. Non-Executive Posts – These are technical positions that require technical or
               practical skills.

          While there is a general criteria that must be fulfilled by expatriates desiring to
          work in Malaysia, for the biotechnology sector there are some additional
          requirements, namely:

   2.3 Criteria for Biotechnology Knowledge Workers

          Biotechnology knowledge workers fall into two main categories:

           i. Management and Subject Matter Experts

                 •   5 or more years of experience in managing (or serving a post in
                     management capacity) a biotechnology business or venture;

                 •   For subject matter experts, five (5) or more years of direct experience in
                     areas relevant to the biotechnology industry (agricultural, healthcare and
                     industrial biotechnology), including but not limited to:
                     - Product discovery and development e.g. pre-clinical and clinical
                       development;
                     - Biomedical engineering;
                     - Bio-processing;
                     - Quality assurance;
                     - Regulatory affairs;
                     - International business development; and
                     - Accreditation and certification;

                 •   A Bachelor’s degree or higher in biotechnology or life sciences or a
                     discipline that is relevant to biotechnology business.

          ii.   Researchers or Technical Experts

                 •   Five (5) or more years of research or technical experience in a field
                     relevant to the business being conducted by a BioNexus Status
                     company; and

                 •   Preferably with a Bachelor’s degree or higher in biotechnology or life
                     sciences or related disciplines.

                                                                           2
BiotechCorp                                                                   Version 1.0
  Guidelines on the Employment Pass Application                                 3 July 2009

          The general criteria that must also be fulfilled are as follows:

   2.4    IDM’s General Requirements

          The following general criteria apply to all industries and sectors:

           i. Company’s Paid up Capital
               Equity                                                Paid up Capital
               100% Malaysian Company                                RM250,000
               Joint Venture (Malaysia and Foreign)                  RM350,000
               100% foreign owned Company                            RM500,000

          ii. Salary
              Minimum salary of RM5, 000 per month paid in Malaysia.

          iii. Minimum Age
               27 years.

          iv. Working experience
              Minimum 5 years in related field.

          For those who fulfil the two sets of criteria above, there are two Pass options that
          will enable them to work in Malaysia.

3. TYPES OF PASSES

   3.1 Main Passes of Work Permit

          Below are two types of passes currently being supported by Biotechcorp.

           i. Employment Pass

              The Employment Pass is the usual pass issued to expatriates working and
              drawing salaries in Malaysia. It is given for a minimum of 24 months but not
              exceeding 60 months for each period. This Pass will enable the expatriate to
              live and work in Malaysia, legally. For those who are eligible for an expatriate
              position but do not satisfy all required criteria, a PLKS (Pas Lawatan Kerja
              Sementara) may be issued in place of an Employment Pass. The PLKS is
              only valid for a year, renewable three months before its expiry. The PLKS is
              subject to levy payment. The levy amount varies from sector to sector, for the
              latest levy amounts please refer to www.imi.gov.my

          ii. Professional Visit Pass.

              This type of Pass is issued to those who will be in Malaysia for a minimum of
              2 weeks to 12 months with the sole purpose of technology transfer.
              Incumbents holding this Pass are prohibited from receiving a salary or any
              mode of payment in Malaysia. Prohibited to receive salary does not mean the
              PVP holder will not be required to pay income tax. For PVP holders from
              countries with DTA (Double Taxation Agreement) with Malaysia, income tax
              payment will be required if they were to stay for more than 182 days in total in
              a year, PVP holders from countries where there are no government to

                                                                           3
BiotechCorp                                                                     Version 1.0
  Guidelines on the Employment Pass Application                                   3 July 2009

                 government DTA will be required to pay income tax if they were to remain in
                 Malaysia for 61 days or more.

   3.2 Supporting Passes

          Expatriates who live and work in Malaysia are allowed to apply for all or any of
          the following Passes for their family members:

           i. Dependent Pass

                 This pass is usually issued to the spouse and children of the expatriate.
                 Children who are below the age of 18 would automatically qualify for this
                 Pass. If these children need to study in Malaysia, Permission to Study would
                 be stamped on the Dependent’s Pass. The tenure of this Pass will usually be
                 synchronized with that of the expatriate’s, subject to passport validity.

                 For expatriate spouses who wish to be employed, upon successfully securing
                 employment, Permission for Employment will be stamped on the Pass.

          ii. Student Pass

                 This Pass is issued to expatriates’ children who are above 18 and studying in
                 colleges. If the expatriate’s child has attained 21 years of age but is still
                 studying, he/she will also be entitled to this Pass.

          iii.   Social Visit Pass

                 This Pass is issued to parents of expatriates who live with him/her and
                 children of expatriates who have attained the age of 21 but still live with
                 his/her parent who is the expatriate.

          iv. Work Permit

                 This is issued to the expatriate’s maid if he/she brings one from the country of
                 origin. Tenure for the maid will be in accordance to the expatriate’s
                 Employment Pass.

                                                                             4
BiotechCorp                                                               Version 1.0
  Guidelines on the Employment Pass Application                             3 July 2009

4. APPLICATION PROCEDURE – EMPLOYMENT PASS

   4.1 Procedures

           i. Step 1

              The company that wishes to bring in an expatriate, must first identify the
              position. A Position Application (DP10) will have to be submitted to the
              Expatriate Committee (EC) for approval. The company will be given an
              Acknowledgement Letter (Diagram 1). There will be a Web Reference
              Number on the letter which can be used to check on the application status at
              www.imi.gov.my (Diagram 2).       The EC would convene twice a week to
              deliberate and decide on Position Applications.

                                                                        Akuan Penerimaan

                                                                   SpecialWeb Reference
                                                                           number

                         Diagram 1 – Sample of Acknowledgement Letter

                                                                        5
BiotechCorp                                                                 Version 1.0
  Guidelines on the Employment Pass Application                               3 July 2009

                               Key in web
                               reference here

                        Diagram 2 - Web Page to check status of application

        ii.    Step 2

               Once the position has been approved by the EC, the company can then
               submit an application to apply for an Employment Pass for the expatriate
               concerned. At this juncture a Dependent Pass, Social Visit Pass or other
               relevant pass can also be applied for at the same time. Expatriates from
               some countries can enter Malaysia using a Social Visit Pass and later convert
               that into an Employment Pass. Expatriates from selected countries will have
               to obtain a `Calling Visa’ letter before they can enter Malaysia. Latest
               information on this can be obtained at www.imi.gov.my. Detailed processes
               are provided below:

   4.2 Employment Pass Application

          After position approval from the EC, the company can submit an application for
          an Employment Pass. The applicant, depending on nationality, can decide on
          one of two methods below to obtain the Employment Pass upon arrival in
          Malaysia:

          i.   Reference Visa

               The Reference Visa letter (Calling Visa Letter) will be issued by IDM. The
               applicant has to bring the Letter to the Malaysian Embassy in his/her country
               of residence to have a special Social Visit Pass endorsed onto the passport.
               Upon entry into the country, the applicant must make a payment (depend on
               the country) and obtain the actual Employment Pass from IDM within 7 days
               of arrival.

         ii.   Journey Performed (JP) Visa

               Applicants from selected countries enter Malaysia with a Social Visit Pass
               which can be converted to an Employment Pass upon arrival in Malaysia. JP
               Visa costs RM 500.00. This has to be done within 7 days of arrival into
               Malaysia.

                                                                         6
BiotechCorp                                                                 Version 1.0
  Guidelines on the Employment Pass Application                               3 July 2009

   4.3 Dependents Pass Application – DP11A

          Married expatriates with Employment Pass are entitled to apply for a Dependent
          Pass. The application can be done together with the Employment Pass
          application.

          i.   Eligibility Criteria for Dependents

                Husband/wife and children below 18.

5. APPLICATION PROCEDURE – PROFESSIONAL VISIT PASS

   For a Professional Visit Pass (PVP), companies that decide to bring in foreign expertise
   to transfer technology in Malaysia must have a collaborating partner company overseas
   to provide the technology. A memorandum of understanding must be signed by both
   parties before the PVP process commences.

          i.   Step 1

                Company submits an application to the Income Tax Department to inform the
                department of its intention to bring in foreign expertise. An acknowledgement
                letter will be issued by the Income Tax Department.

         ii.   Step 2

                Company then submits a full PVP application together with the Income Tax
                acknowledgement letter to the PVP counter at IDM, Putrajaya. The
                processing period is between 21 to 30 days. Once the application is
                approved, a Reference Visa (Calling Visa) Letter will be issued to the
                applicant company. This letter must be sent to the foreign expert who will
                have to bring it to the closest Malaysian Embassy to have a Social Visit Pass
                endorsed into the passport. Upon arrival in Malaysia, payment (RM 90.00
                for 3 months, Visa - According to nationality) must be made to IDM and a
                PVP endorsement be obtained for the passport.

          Note: PVP holders whose stay in Malaysia is up to 12 months can apply for
          Dependent Passes for their immediate family.

                                                                         7
BiotechCorp                                                                    Version 1.0
  Guidelines on the Employment Pass Application                                  3 July 2009

6. LIST OF DOCUMENTS REQUIRED FOR SUBMISSION OF APPLICATION

    Document Supporter                                  DP10    DP11    DP11        PVP
                                                                         A
    Employment Contract or agreement, to be                       
    stamped RM 10
    Cover Letter and Letter of Authorization                                        
    Company CCM (form 9, 24 and 49)                                                  
    Job description for the position applied              
    Personal Bond, to be stamped RM10                                                  
    Organization Chart with expatriates position          
    Company’s product brochure                            
    Company profile from CCM                                      
    Applicants Application forms DP10 and DP11                    
    Applicants Two Passport photo -              size                                
    photographs
    Applicants Copies passport – all pages                                          
    Applicants Resume include the educational                     
    background, qualifications and experiences
    Applicants educational qualification                                             
    Dependant form DP11A                                                     
    Original civil marriage certificated – translated                        
    and certified by relevant embassies
    Form IMM 12: Visit Pass Application                                                
    Form IMM 55: Extension of Visit Pass                                               
    Form IMM 38: Visa Application for non-                                             
    commonwealth
    Letter      of      Confirmation     from     the                                  
    company/Employer regarding the expatriate
    admission status to Malaysia
    Training Schedule/program for PVP on Training                                      
    or seminar
    Income tax declaration letter from income tax                                      
    department
    Letter from overseas institution if foreigner is                                   
    sent for practical training
    Copy of Employment Pass Sticker and bio data                             
    Company’s three years audited accounts                
    Copy of Expatriate’s EA (for renewal only)            

      For latest list of documents, please log on to http://www.imi.gov.my

7. FEES FOR EMPLOYMENT AND DEPENDENT PASS:

   Expatriate :      RM200 per year per expatriate for Employment Pass
                          RM 50 for processing

   Dependent:        RM 90 per dependent
                           RM 50 for processing

   Payment via Bank Draft made out to `Ketua Pengarah Imigresen Malaysia’.

                                                                            8
BiotechCorp                                                                  Version 1.0
  Guidelines on the Employment Pass Application                                3 July 2009

8. RESTRICTIONS

   Expatriates holding Employment Passes are restricted from engaging in the following
   activities:

         i.    Not allowed to hold other job(s) besides the current job which has been
               issued with the employment pass;

        ii.    Not allowed to participate in illegal activities such as the smuggling of drugs
               into or out of the country and /or engage in other illegal activities; and

        iii.   Not allowed to participate in activity such as Missionary, provocative or
               politics instigative, which is considered sensitive, and a threat to national
               security.

   Employment Pass holders must also ensure adherence to any new regulation introduced
   by IDM from time to time.

   The Following are the relevant agencies that applicant will have to liaise with when
   applying for an Employment or Professional Visit Pass.

    Immigration Malaysia             Company           Commission      Inland Revenue Board
                                     Malaysia
    Jabatan Imigresen Malaysia       Suruhanjaya Syarikat              Lembaga Hasil Dlm
    Tingkat 1-7, (Podium)            Malaysia, Tingkat 2 &10-19,       Negeri, Tingkat 16, Blok
    No. 15 Persiaran Perdana ,       Putra Place, 100 Jalan Putra      8A, Komplek Bangunan
    Persint 2.                       50622 Kuala Lumpur                Kerajaan, Jalan Duta
    62550 Putrajaya. Malaysia                                          50600 Kuala Lumpur
    No. Tel 03-88801000              No. Tel 03-40476000               No. Tel 03-62091000
    No. Faks 03-88801200             No. Faks 03-40476111              No. Faks 03-62013372
    www.imi.gov.my                   www.ssm.com.my                    www.hasil.org.my

   BiotechCorp assist biotechnology companies in the following ways:

         i.    For Bio Nexus status companies:
                • Provide advice on employing foreigners in Malaysia;
                • Provide assistance in preparing documentation to be submitted to IDM;
                    and
                • Represent Bio Nexus companies to submit application, if requested by
                    the company.

        ii.    For non Bio Nexus biotechnology companies:
                • Provide advice on employing foreigners in Malaysia; and
                • Provide assistance in preparing documentation to be submitted to IDM.

                                                                          9
BiotechCorp                                            Version 1.0
     Guidelines on the Employment Pass Application          3 July 2009

Reference

1.       Ministry of Home Affairs
         www.moha.gov.my

2.       Immigration Department Malaysia
         www.imi.gov.my

3.       Malaysian Biotechnology Corporation
         www.boitechcorp.com.my

4.       Inland Revenue Board, Malaysia
         www.hasil.org.my

5.       Companies Commissioner Malaysia
         www.ssm.com.my

Contact

For further information or clarification, please contact:

Vice President
Facilitation, Client Support Services Division
Malaysian Biotechnology Corporation Sdn Bhd
Level 23 Menara Atlan
161 Jalan Ampang
50450 Kuala Lumpur

T: 03 2116 5588
F: 03 2116 5528
E: info@biotechcorp.com.my

                                                       10
BiotechCorp                                                                 Version 1.0
  Guidelines on the Employment Pass Application                               3 July 2009

10.   IMMIGRATION PROCESS FOR EMPLOYMENT PASS

                             Submission of
                             application to
                            BiotechCorp by
                          BioNexus Company

                            BiotechCorp reviews                                 Request client to
                          the Application & issues   If incomplete              amend and fulfil the
                             a supporting letter                                requirement s

                           Submission to IDM for
                               EC approval

                             JKPD Committee                                       Request client to
                                Approval             In case of non
                                                                                  amend and fulfil the
                                                     acceptance/rejection
                                                                                  requirements or appeal

                          If approved submit the
                              Employment Pass
                                application

                               Immigration           In case of non               Request client to
                           department Approval       acceptance / rejection       amend and fulfil the
                                                                                  requirements

                          Complete payment and
                          obtain the EP sticker in
                                 passport.

                                                                         11
You can also read