Foreign Workers Recruitment in Malaysia: A Comprehensive Guide

In the diverse landscape of Malaysia's workforce, the integration of foreign worker is not just a necessity but a strategic advantage for businesses aiming to thrive in a globalized economy. However, the path to securing foreign workers involves a series of steps that can be daunting for employers unfamiliar with the process. This guide aims to demystify the process, providing a comprehensive overview of the steps involved in applying for foreign workers in Malaysia.

Requirements of Hiring Foreign Workers

• Working in sectors: Manufacturing, Construction, Agriculture, Plantation, and Services
• Applications for foreign workers by employers/companies are subjected to quota approval from One Stop Centre (OSC), Ministry of Human Resources
• Be between 18 and 45 years old at the time of application
• Be certified healthy by an approved health examination center in their source country. (Refer to the List of Approved Health Centres)
• Not be listed among the foreign individuals prohibited from entering under Section 8(3) of the Immigration Act 1959/1963.
• Come from the approved source countries listed below:

Recruitment Process for Foreign Workers

Post job vacancies on the Jobs Malaysia portal

• Give priorities to local job seekers
• Applying foreign labor recruitment quota only if vacancies are not filled-up by local labours.

Quota Application

• Obtain quota approval from the Ministry of Home Affairs
• The application can be done through the Foreign Worker One-Stop Approval Centre (OSC) established by the Ministry of Home Affairs
• Interview takes place with the employer or authorized representative from the Ministry for the Company’s particular sector
• Once approved, make the levy payment within 48 hours of the approval date
• A letter of Conditional Approval will be released once payments are made

You may check how much-qualified quota is available for your sector.

Application Procedures for Foreign Workers

Phase 1: Before Arrival

Step 1: Foreign workers may enter the country only through designated entry points using the Visa with Reference (VDR) issued by the Immigration Department of Malaysia and the Entry Visa issued by the Malaysian Representative Office in their home country.

• Submit VDR application form at the Immigration counters or online via the e-Services system
• Documents required for submission of VDR application
• i. VDR application form
• ii. Approval letter from Ministry of Home Affairs (Quota approval)
• iii. Original receipt of payment for levy
• iv. IM.12 & IM.38 forms
• v. Security bonds (deposits/insurance guarantee/bank guarantee)
• vi. Copy of the foreign workers’ passports
• vii. Latest photo of the foreign workers (passports size 1 piece)
• viii. Medical report from the country of origin approved by Ministry of Health
• ix. Foreign Worker Compensation Scheme (insurance)
• x. Insurance policy of Health Insurance Protection Scheme Foreign Workers (SPIKPA)

Step 2: Employers must ensure the clearance of foreign workers within six (6) hours of their arrival.

Step 3: Employers have 30 days to conduct health examinations for foreign workers at a registered health center with FOMEMA for the issuance of the Visit Pass Temporary Employment (VPTE).

Step 4: The VPTE will only be issued after the foreign worker is certified healthy by a FOMEMA-registered health center. If found unfit, the employer must promptly repatriate the foreign worker by applying for the Check Out Memo (COM).

• The VPTE must be issued at the same Immigration Office that granted the VDR approval.
• Once approved, passports and insurance policies shall be submitted to the Immigration Department to obtain work permit stickers and identification card (i-Kad).
• VP(TE) is valid for a period of 12 months.

Phase 2: After Arrival

Step 1: Foreign workers must enter the country through authorized entry points using the Visa with Reference (VDR) issued by the Immigration Department and the entry visa from the Malaysian Attaché Office in their home country.

• Submit VDR application form at the Immigration counters or online via e-Services system
• Documents required for submission of VDR application
• i. VDR application form
• ii. Approval letter from Ministry of Home Affairs (Quota approval)
• iii. Original receipt of payment for levy
• iv. IM.12 & IM.38 forms
• v. Security bonds (deposits/insurance guarantee/bank guarantee)
• vi. Copy of the foreign workers’ passports
• vii. Latest photo of the foreign workers (passports size 1 piece)
• viii. Medical report from the country of origin approved by Ministry of Health
• ix. Foreign Worker Compensation Scheme (insurance)
• x. Insurance policy of Health Insurance Protection Scheme Foreign Workers (SPIKPA)

Step 2: Employers must ensure that the clearance process at the entry points is completed within 24 hours of arrival.

Step 3: The Visit Pass (Temporary Employment) [VP(TE)] will be issued only after foreign workers pass the FOMEMA medical examination, which must be conducted within 30 days at any FOMEMA-registered medical center.

Step 4: VP(TE) will be issued once the foreign worker is certified fit by a FOMEMA-registered clinic or medical center. If health status is unsatisfactory, an appeal can be submitted to FOMEMA. If the appeal is rejected, the foreign worker will be sent back to his/her home country. Employers must then apply for a Check Out Memo for the repatriation of the foreign worker.

• The VP(TE) must be issued at the same Immigration Office that granted the VDR approval.
• Once approved, passports and insurance policies shall be submitted to the Immigration Department to obtain work permit stickers and identification card (i-Kad).

Extension of VP(TE)

1. VP(TE) is valid for a period of 12 months. Employers can apply for VP(TE) extension 3 months before the expiry date.
2. Employers must ensure the extension application is made before the VP(TE) expires. Any application submitted after the expiry date will be referred to the Immigration Enforcement Division for consideration.
3. Application of VP(TE) extension must adhere to this checklist :

• The passport of the foreign worker is still valid for 12 months and above
• Application letter to extend the VP(TE)
• Identification document of employee/ company representative (SSM company / Form 49 / Form B & D / Card Company Representative / Form Company representatives have endorsed / copy of the employer ‘s identity card)
• The security bond is a form of bank guarantee/insurance guarantee/deposit ( validity period of bank guarantee/insurance guarantee is at least 18 months )
• Insurance policy of Health Insurance Protection Scheme Foreign Workers (SPIKPA) – except for plantation sector
• Slip of Foreign Workers Compensation Scheme ( FWCS )
• Foreign workers must undergo a medical examination and be certified fit by the clinic/ medical center registered with FOMEMA (for 2nd and 3rd-year extension only)

EMPLOYMENT PERIOD AND REPATRIATION

• Foreign workers are allowed to work in this country every year for up to 10 years. However, those registered under the 6P Program are allowed to work for up to 3 years only.
• Upon completion or termination of employment, the employers must ensure that foreign workers are deported to their origin countries by using Check Out Memo. Security bonds can be claimed provided the repatriation process is done accordingly through the Check Out Memo.

FEES FOR VP(TE) EXTENSION

The following fees must be paid to the Immigration Department for VP(TE) extension application:

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