A Guide for Malaysian Business Owners: How to Hire Foreign Workers Legally

 

Hiring foreign workers in Malaysia can be a great way to address labor shortages, expand your workforce, and bring in specialized skills. However, the process involves strict regulations that business owners must follow to ensure compliance with Malaysian labor laws. This guide outlines the essential steps and legal requirements for hiring foreign workers in Malaysia.

Step 1: Determine the Need for Foreign Workers

Before applying for foreign worker permits, employers must prove that they cannot fill the vacancies with local talent. The government prioritizes hiring Malaysians first, so businesses must conduct local recruitment efforts before considering foreign employees.

Step 2: Identify the Eligible Sectors for Foreign Workers

The Malaysian government allows foreign workers in specific sectors, including:
✅ Manufacturing
✅ Construction
✅ Plantation
✅ Agriculture
✅ Services (such as hospitality and cleaning services)

Foreign workers are not allowed in high-skilled professions such as engineering, medicine, or law. For these positions, businesses must apply for expatriate employment passes instead.

Step 3: Obtain Approval from the Ministry of Home Affairs

To hire foreign workers, employers must first obtain approval from the Ministry of Home Affairs (Kementerian Dalam Negeri – KDN). The key steps include:
✔️ Submitting a quota application to the Ministry of Home Affairs
✔️ Waiting for approval based on industry needs and labor market conditions

Step 4: Engage with an Approved Recruitment Agency

Hiring foreign workers in Malaysia must be done through a licensed recruitment agency. These agencies help with:
📌 Selecting candidates from source countries
📌 Arranging medical check-ups
📌 Handling documentation and visa processing

The approved source countries for foreign workers in Malaysia include Indonesia, Bangladesh, Nepal, Myanmar, India, Sri Lanka, Vietnam, and Pakistan.

Step 5: Apply for a Visa and Work Permit

Once the quota is approved, the next step is to apply for the necessary permits:

• Visa with Reference (VDR): This allows the worker to enter Malaysia legally.
• Temporary Employment Pass (PLKS): A renewable permit that allows foreign workers to stay and work in Malaysia for up to 10 years (subject to conditions).

These applications are handled by Malaysia’s Immigration Department and require documents such as:
✔️ A valid employment contract
✔️ Medical clearance from an approved health center
✔️ A security bond (paid by the employer)

Step 6: Ensure Compliance with Employment Laws

After hiring foreign workers, employers must comply with Malaysian labor laws, including:
✅ Providing a minimum wage as per government regulations
✅ Ensuring proper accommodations for workers
✅ Registering workers with SOCSO (Social Security Organization) for workplace injury protection

Failing to meet these requirements can result in heavy fines, business license suspension, or legal action.

Step 7: Renew and Monitor Work Permits

Foreign worker permits must be renewed annually. Employers must ensure:
✔️ Timely renewal of the PLKS
✔️ Regular medical check-ups
✔️ Compliance with work permit conditions

Workers are not allowed to change employers without government approval. If a worker’s contract ends or they violate employment terms, the employer must arrange for their deportation.

Conclusion

Hiring foreign workers in Malaysia is a structured process that requires careful planning and legal compliance. By following the right steps, businesses can build a reliable workforce while staying compliant with Malaysia’s labor laws.

If you need assistance in hiring foreign workers, [Your Staffing Agency Name] is here to help! We provide hassle-free recruitment, visa processing, and compliance management to ensure a smooth hiring process. Contact us today for a consultation!