How to Apply Foreign Worker Quota in Malaysia?

Are you looking for how to apply foreign worker quota in Malaysia? Then, you’ve come to the right place! Hiring foreign workers can be a crucial step for businesses that require additional labour. However, it is essential to navigate the rules and procedures set by the Malaysian government to ensure compliance and a smooth hiring process.

In this article, we will explore the rules and policies for hiring foreign workers in Malaysia and provide a step-by-step guide on how to apply for the foreign worker quota. By understanding the requirements and following the correct procedures, employers can successfully hire foreign workers in Malaysia.

Rules and Policies for Hiring Foreign Workers in Malaysia

Malaysia has specific rules and policies in place for hiring foreign workers. If you are an employer seeking to hire foreign workers, it is essential to understand these regulations to ensure compliance. Here is how to apply foreign worker quota in Malaysia, as well as some key rules and policies to consider:

1. Work in Approved Sectors

Foreign workers are generally allowed to work in approved sectors, which are:

manufacturing;
construction;
plantation;
agricultural;
mining and quarrying; and
services.

The Malaysian government has identified these sectors as areas where there is a need for foreign labour.

2. Subject to Quota Approval from the Ministry of Home Affairs

Employers must obtain quota approval from the Ministry of Home Affairs before hiring foreign workers. The quota system ensures that the employment of foreign workers is balanced and aligned with the country’s economic needs.

3. Age

The age of foreign workers is an important consideration. Generally, workers should be between 18 and 45 years old, although there may be some exceptions for specific sectors.

4. Immigration Security Clearance

Foreign workers must undergo immigration security clearance to ensure they do not pose a threat to national security. This clearance includes screening for criminal records, involvement in illegal activities, and any potential security risks.

5. Health

Health checks are mandatory for foreign workers to prevent the spread of diseases and safeguard public health. These checks typically include screenings for infectious diseases, such as tuberculosis and HIV/AIDS.

6. Source Country

The source country of foreign workers is also a factor in the hiring process. The Malaysian government maintains a list of approved source countries, and employers must ensure that workers are recruited from these authorised countries.

The source countries approved by the Malaysian government are:

Thailand;
Cambodia;
Nepal;
Myanmar;
Laos;
Vietnam;
Philippines;
Pakistan;
Sri Lanka;
Turkmenistan;
Uzbekistan;
Kazakhstan;
India (only construction, services, agriculture, and plantation);
Indonesia (except manufacturing for male workers);
Bangladesh (only plantation via G2G agreement).

Read more: 11 Factors to Consider When Scheduling Staff

Procedure of Hiring Foreign Workers

Once you understand how to apply foreign worker quota in Malaysia, it is crucial to follow the correct procedures. Here is an overview of foreign worker hiring process in general:

Pre Arrival

Before the arrival of foreign workers, employers must complete several essential steps. These include:

Employers must obtain the PASS Immigration Security Clearance (ISC) result at the ISC centre in the source countries.
Employers must apply to the Immigration Department for a Visa with Reference (VDR) approval before employing foreign workers.
The VDR application can be submitted either at the Immigration counters or online via the e-Services system.
The VDR application must include the following documents:
- VDR application form
- Approval letter from Ministry of Home Affairs (Quota approval)
- Original receipt of payment for levy
- IM.12 and IM.38 Forms
- Security bond – deposits / insurance guarantee / bank guarantee (insurance guarantee must be stamped and valid for at least 18 months )
- Copy of the foreign workers’ passports
- Latest photo of the foreign workers (passports size)
- Medical certificates from the medical centre in origin countries (valid for 3 month from the date of issuance)
- Foreign Worker Compensation Scheme (insurance)
- Insurance policy of Health Insurance Protection Scheme Foreign Workers (SPIKPA) – Except for Plantation Sector
Foreign workers must remain in their respective countries while waiting for VDR approval from the Malaysia Immigration Department.

Post Arrival

After the foreign workers have arrived in Malaysia, the following steps should be taken:

Foreign workers will only be allowed to enter the country at authorised entry points using the VDR issued by the Immigration Department and entry visa issued by the Malaysian Attaché’s Office in the country of origin.
Employers must ensure that the clearance process of foreign workers at the entry points is completed within 24 hours from the arrival time.
Within 30 days of arrival, foreign workers must undergo a medical examination conducted by any medical centres registered with FOMEMA (Foreign Workers Medical Examination Monitoring Agency).
The issuance of Visit Pass (Temporary Employment) [VP(TE)] to the foreign workers will only be done after they have passed the FOMEMA medical examination.
VP(TE) will be issued at the Immigration Office that issued the VDR approval letter, certifying the foreign worker’s fitness. Failure to pass the medical examination will result in the foreign worker not being allowed to stay and work in Malaysia, and employers will need to apply for a Check-Out Memo for the repatriation of the foreign worker.

It is crucial for employers to adhere to these procedures and timelines to ensure compliance with the hiring process for foreign workers in Malaysia. Consulting the relevant government authorities or seeking professional assistance can provide further guidance and ensure a smooth and lawful process.

Find the Right Candidate with Applicant Tracking System

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With StaffAny, you can simplify scheduling, attendance tracking, and task management for your workforce. Increase productivity, save time, and ensure compliance with ease. Visit StaffAny to learn more and start optimising your foreign worker management today!