From Arrival to Approved: An Expat Manager’s Journey to a Sarawak Work Permit Requirement.

Phase 1: Company Registration with ESD (if not already registered)

If the foreign-owned private company is not already registered with the Expatriate Services Division (ESD), this is the initial and crucial step. The company will need to register online through the official ESD portal, which can be accessed at esd.imi.gov.my.

The company registration process typically requires the submission of various documents, including :

• Certificate of Incorporation or Business Registration.
• Company Profile outlining the nature of the business.
• A list of the company’s directors and their personal details (e.g., passport copies).
• Documentation verifying the company’s paid-up capital.
• The company’s latest telephone bill and a copy of the tenancy agreement or sales and purchase agreement for the office premises.
• The latest e-SSM (electronic Search on Companies Commission of Malaysia) printout and relevant SSM forms such as Form 9 (Return of Allotment of Shares), Form 24 (Return of Particulars of Directors, Secretaries and Agents), and Form 49 (Statement in Lieu of Prospectus).
• The company’s latest Audited Financial Report.
• A copy of the Local Authorities License (Lesen Pihak Berkuasa Tempatan – PBT), if applicable to the business sector.
• Other relevant business licenses or permits specific to the industry.

During the registration process, the company will also need to nominate authorized personnel who will be responsible for managing the company’s ESD applications. This usually involves designating individuals as the main user, submission officers, and endorsers within the online system.

A significant part of the company registration involves signing a Letter of Undertaking (LoU) with the ESD. This is a formal agreement where the company pledges to abide by the rules and regulations set forth by the Malaysian Immigration Department regarding the employment of expatriates.

It is important to note that the company registration process with the ESD can take a considerable amount of time, potentially ranging from one to three months, depending on the completeness of the submitted documents and the processing efficiency of the authorities. Therefore, companies should initiate this process well in advance of needing to apply for an Employment Pass for their expatriate employees.

Phase 2: Application for Expatriate Post Approval (if applicable)

Depending on the specific industry sector in which the foreign-owned private company operates, there might be a requirement to obtain approval for the expatriate position from a relevant government agency before proceeding with the Employment Pass application. For instance, companies in the manufacturing and related services sectors often need to seek approval from the Malaysian Investment Development Authority (MIDA).

The company should check with the relevant authorities based on their industry classification to determine if this step is necessary. If it is, the application for expatriate post approval will need to be submitted to the designated agency, along with any required supporting documents.

This approval from the sector-specific agency is typically a prerequisite before the ESD will accept and process the Employment Pass application. It ensures that the hiring of foreign talent aligns with the national policies and priorities for different economic sectors.

Phase 3: Employment Pass Application

Once the sponsoring company is successfully registered with the ESD (and has obtained the necessary expatriate post approval, if applicable), the application for the Employment Pass for the expatriate manager can be initiated through the ESD online portal. This is the stage where detailed information about both the expatriate and the specifics of the job role within the company will need to be provided.

During the application process, the company will need to select the appropriate category of Employment Pass (Category I or II) based on the expatriate’s basic monthly salary and the scope of their managerial responsibilities. Ensuring the correct category is chosen is vital for the success of the application.

It is also important to be aware of a potential requirement for the company to advertise the job vacancy on the MYFutureJobs portal, which is under the purview of the Ministry of Human Resources. This requirement is generally applicable for positions with a salary below RM15,000 per month and is intended to give local Malaysian job seekers an opportunity to apply for the role. The advertisement typically needs to be posted for a minimum of 30 days. However, there might be exemptions from this requirement for certain key positions or for expatriates earning a salary above this threshold. The company should verify if this requirement applies to the specific managerial role they are trying to fill.

Phase 4: Required Documents for the EP Application

The Employment Pass application necessitates the submission of a comprehensive set of documents from both the expatriate manager and the sponsoring company.

For the Expatriate Manager:

• A clear copy of all pages of their passport, with a minimum of 18 months of validity remaining.
• Recent passport-sized color photographs with a blue background (the number required may vary, but typically around six).
• A copy of the Employment Contract between the expatriate and the sponsoring company, duly signed and stamped by the Inland Revenue Board of Malaysia.
• A detailed and up-to-date Curriculum Vitae (CV) or Resume outlining their professional history and qualifications.
• Certified copies of their academic certificates (degree, diploma, etc.) and transcripts from relevant educational institutions. If the original documents are not in English, they must be accompanied by certified English translations. These copies often need to be attested by the Embassy or High Commission of Malaysia in the applicant’s home country or by the applicant’s embassy in Malaysia.
• A Letter of Good Conduct or Police Clearance Certificate from the relevant authority in the expatriate’s country of origin, issued within a recent timeframe (usually within the last six months). This is required for all applicants above 18 years of age.
• A Health Declaration Form, which might need to be completed and submitted as part of the application.
• Proof of previous employment, such as testimonials or reference letters from former employers, might be required to support the applicant’s work experience claims.

For the Sponsoring Company:

• Copies of the company’s registration documents as listed in Phase 1 (Certificate of Incorporation, Forms 9, 24, 49, etc.).
• A comprehensive Company Profile detailing its business activities, history, and structure.
• A copy of the Expatriate Post Approval letter, if the company was required to obtain this in Phase 2.
• A Letter of Support from relevant regulatory bodies or government agencies, if applicable to the company’s industry or the specific role.
• An organizational chart of the company, clearly showing the position of the expatriate manager within the hierarchy.
• A detailed justification letter explaining why it is necessary to hire an expatriate for the managerial position, highlighting the specific skills and expertise that the candidate brings to the company.
• The company’s latest audited financial statements to demonstrate its financial stability and ability to employ the expatriate.

Table: Required Documents for Employment Pass Application

Phase 5: Submission and Processing

Once all the required documents have been meticulously prepared and compiled, the Employment Pass application, along with the supporting documentation, must be submitted online through the ESD portal. During the online submission, the applicable processing fees will also need to be paid. The fee structure can vary depending on the category of Employment Pass and other factors, so it is important to refer to the latest fee schedule provided on the ESD portal.

The processing time for an Employment Pass application can vary. While the ESD aims for efficiency, it typically takes around 5 to 10 working days after the complete submission of all required documents. However, this timeframe can be longer depending on the complexity of the case and the volume of applications being processed by the authorities. It is advisable to regularly check the status of the application through the ESD online portal using the tracking features provided.

Phase 6: Passport Endorsement and Visa Issuance

Upon the successful approval of the Employment Pass application, the sponsoring company will receive an official approval letter from the ESD. Following this, the expatriate manager will be required to present their original passport to the Immigration Department of Malaysia in Sarawak for the Employment Pass to be officially endorsed onto their passport.

This process might involve the expatriate attending an interview at the Immigration Department or providing biometric data, such as fingerprints. Once the necessary checks and procedures are completed, the Immigration Department will affix the Employment Pass sticker onto a page in the expatriate’s passport. This sticker serves as the official work permit and grants the expatriate the legal right to work and reside in Sarawak for the duration specified on the pass.

Post-Approval Procedures and Important Considerations

After the Employment Pass has been successfully obtained, there are several post-approval procedures and important considerations to keep in mind.

While the Sarawak-Malaysia My Second Home (S-MM2H) program has a specific minimum stay requirement within Sarawak for its pass holders 30, this requirement does not typically apply to individuals holding an Employment Pass, unless they also possess an S-MM2H pass concurrently.

Employment Passes are typically issued for a specific period, which can range from one to five years depending on the category of the pass and the terms of the employment contract.12 It is crucial to ensure that the Employment Pass is renewed before its expiry date to maintain legal working status in Sarawak. The renewal process usually involves submitting a renewal application through the ESD portal, along with updated supporting documents. It is recommended to initiate the renewal process well in advance of the expiry date to avoid any lapse in the validity of the pass.

If the expatriate manager wishes to bring their spouse and/or unmarried children under the age of 21 to reside with them in Sarawak, they will need to apply for a Dependant Pass or a Long-Term Social Visit Pass for their family members.8 The eligibility criteria and the required documents for these dependent passes are separate from the Employment Pass application and will need to be submitted to the Immigration Department.

It is of utmost importance for both the expatriate manager and the sponsoring company to remain compliant with all of Sarawak’s specific immigration laws and labor regulations throughout the duration of the Employment Pass. Given Sarawak’s autonomous status in immigration matters, the state has its own set of rules that must be adhered to.

In the event of any unforeseen issues, such as application delays or a notification of rejection, it is advisable to seek assistance from the sponsoring company’s Human Resources department or a reputable immigration agent who specializes in Sarawakian immigration procedures. They can provide guidance on troubleshooting and potential appeal processes, if applicable.

Conclusion

Obtaining a permit to stay and work in Sarawak as a high-level manager in a foreign-owned private company primarily involves securing an Employment Pass. This process requires meticulous preparation and adherence to the procedures set forth by the Expatriate Services Division of the Malaysian Immigration Department and the Sarawak state government. Key steps include ensuring the sponsoring company is registered with the ESD, potentially obtaining expatriate post approval, submitting a comprehensive Employment Pass application with all required documents, undergoing the necessary processing, and finally receiving the passport endorsement from the Sarawak Immigration Department. Maintaining compliance with all relevant immigration and labor laws, along with ensuring timely renewal of the pass and understanding the procedures for dependents, are crucial for a continued legal and successful professional experience in Sarawak. Close collaboration with the company’s HR department throughout this process is highly recommended to navigate the requirements effectively.