Practical Guide to Hiring Expatriates in Malaysia - Navigating Expatriate Services Division (ESD)

The Malaysian government has established the Expatriate Services Division (ESD) to facilitate hiring expatriates. Employers need to apply for a work permit on behalf of the expatriate employee through the ESD online portal. The work permit, also known as an Employment Pass, allows expatriates to work legally in Malaysia for a specified period.

There are 4 Stages in the Whole Process: 

1. Registration of your company with ESD

2. Activation of your company account with ESD

3. Expatriate application via MYXpats CENTRE

4. Passport Endorsement & Collection at MYXpats CENTRE

STEP 1: Registering Your Company

• Your company must be eligible for registration (see below)

• Prepare the documents (see below)

• Go to https://esd.imi.gov.my/portal/ and register an account 

  
  

  You will need to:

  
  

  1. Purchase a copy of your company’s SSM info via ESD online;

  
  

  2. Submit the requested information;

  
  

  3. Enter your company’s projection of expatriates required for the year 

  
  

To be eligible, companies (1) must be registered with SSM OR ROS OR are ; firms incorporated under specific acts eg: Law firms and Accounting firms OR International organisations certified by the Ministry of Foreign Affairs. and (2) your company’s paid up capital has to be: 

STEP 2: Activating Your Account

• You will receive notification via the ESD system.

• Approved companies need to schedule an appointment via the ESD online system.

• Print a copy of the Letter of Understanding (LoU) from the ESD online system onto your company’s official letterhead and fill in the required information.

• Verification and Signing of LoU. 

STEP 3: Expatriate Application via MYXpats CENTRE

The 4 main types of passes that you can apply for: 

1. Employment Pass (Category I) – expatriate 

2. Employment Pass (Category II) – expatriate 

3. Employment Pass (Category III) – knowledge/skilled worker 

4. Professional Visit Pass 

   
   

STEP 4: Passport Endorsement & Collection at MYXpats CENTRE

• Print the approval letter available online.

• Applicants (Expats) will have 30 days upon entering Malaysia to endorse the EP sticker.

• Walk-in to the MYXpats CENTRE and submit the relevant documents for endorsement.

Navigating the process of registering with ESD can be an arduous and time-consuming task, even for companies that meet all the necessary eligibility requirements. Despite the clear guidelines, the registration process often involves significant delays, bureaucratic hurdles, and a lack of transparency, leaving companies frustrated and employees in limbo. This can be especially challenging for businesses looking to hire international talent quickly and efficiently. To save valuable time and avoid these complications, consider utilizing our EOR services. HRAP handle all the complexities of expatriate registrations and compliance on your behalf, ensuring that your foreign workforce is seamlessly integrated into the Malaysian market without the hassle.