Background Checks for Employment in Malaysia

Hiring the right person is one of the most important decisions a company makes.

In today’s fast-moving job market, especially with the rise of remote work and sensitive job roles, knowing who you’re bringing into your organisation is more critical than ever.

That is why, background checks step is important. By conducting background checks, you can manage risk, protect your workplace, and make smarter hiring decisions.

Let’s go find out what is background checks and what you need to do.

What is a Background Check?

A background check is a process employers use to verify the information a candidate provides during hiring.

This includes checking their identity, past jobs, academic qualifications, legal history, and more.

Most companies in Malaysia conduct background checks before confirming a job offer.

Some may also use them during promotions, especially for roles with more responsibility, financial access, or security clearance.

Types of Background Checks

Different roles need different checks. For example, a finance manager may need a credit history check, while a school bus driver may need a clean criminal record.

There are 7 most common types of background checks:

1. Identity and NRIC Verification

Employers usually check the candidate’s full name, NRIC number, date of birth, and other basic details using government-issued documents.

Having an identity and NRIC verification is important to avoid cases of impersonation or identity fraud, which can be damaging later on.

2. Employment History Verification

Employment history verification is to confirm whether the candidate truly worked at the companies listed on their resume.

It includes verifying job titles, dates of employment, and sometimes performance.

Through this verification, employers can understand the candidate’s reliability and whether they match the experience claimed.

3. Academic Qualifications and Certifications

Employers often need to verify if the certificates or degrees listed are real and were earned at a recognised institution.

This is especially important for roles that need specific knowledge or professional licenses.

Verification may involve contacting the school or institution directly.

4. Criminal Records Check (via PDRM)

To create a safe work environment, employers may check if a candidate has any past criminal cases.

In Malaysia, this is done through the Royal Malaysian Police (RMP), usually via a trusted background screening provider, since direct access to criminal databases is restricted.

5. Bankruptcy or Credit Status (Especially for Financial Roles)

This is commonly done for roles that deal with money, such as finance or banking jobs.

A credit history check gives insight into a candidate’s financial behaviour.

It may reveal issues like unpaid loans or bankruptcy, which could impact the company if not flagged early.

6. Social Media Screening

Looking at a candidate’s public social media activity gives employers a sense of their professionalism and behaviour.

While it’s not about spying, this check helps identify any red flags, such as offensive posts or extreme views that could affect workplace culture.

7. Reference Checks

This involves contacting previous managers or professional contacts to get feedback on the candidate’s attitude, teamwork, and past performance.

It provides a fuller picture of the candidate beyond their resume or interview answers.

Can a Background Check Affect Employment?

Yes, background checks can impact hiring decisions. If the information found raises red flags, it may lead to rejection or a delay in offering the job. Common issues include:

Inconsistent job or education history
Negative feedback from references
A criminal record that is not suitable for the role
Signs of dishonesty or falsified documents

However, not all findings lead to disqualification. What matters is whether the issue is relevant to the job.

For example, a traffic offence may not matter for an office job, but it could be a concern for a logistics or transport role.

Legal Requirements for Background Checks in Malaysia

There is no specific law that requires companies to conduct background checks.

However, if you decide to run them, you must follow Malaysia’s Personal Data Protection Act 2010 (PDPA) and consider other employment-related laws.

What employers need to do:

Get the candidate’s written consent before collecting or checking any personal information
Issue a personal data protection notice in English and Malay, explaining why you’re collecting the data and how it will be used
Store the data securely and avoid sharing it with unauthorised parties
Take note of the Employment Act 1955, especially if the background check may influence contract terms or rights of the employee
Avoid storing or sharing sensitive personal information without proper safeguards in place

If you're checking criminal records or credit history, avoid asking for details that aren’t relevant to the job.

What Employers Can Ask About a Candidate’s Background

You can ask about a candidate’s education, past jobs, certifications, and legal history (if relevant). But it’s important to keep your questions professional and job-related.

For example, it’s acceptable to ask:

What degree did you complete and where?
Can you share the contact information of your previous employer for reference?
Have you ever been convicted of a crime related to this line of work?

However, questions about religion, gender identity, marital status, race, or political views are considered discriminatory and should not be part of your background check or interview process.

If you do discover something sensitive, it’s best to handle the conversation privately and with care. Give the candidate a chance to explain before making a final decision.

How Long Does a Background Check Take?

Timelines vary. Some checks, like identity and reference verification, can be done in a day or two.

Others, like education or criminal checks, can take a week or more, especially if the data comes from external sources or institutions.

Delays may happen when:

Referees are slow to respond
The candidate doesn’t provide enough documentation
You’re relying on government or third-party databases

How to Prepare for a Background Check (For Employers)

Before you start, decide what type of background checks are necessary for the role.

For example, if you’re hiring a finance manager, a credit check makes sense. However, it may not be relevant to a junior marketing executive.

Next, prepare a checklist of what you’ll need:

Copy of NRIC or MyKad
Academic certificates
Employment references
Written consent from the candidate
Any other documents or background check activities

Be transparent from the start. Let the candidate know what types of checks you’ll be doing and why. It builds trust and reduces confusion later.

Standardise your process. This helps reduce bias and makes your hiring more professional.

If a Candidate is Rejected After a Background Check

Sometimes, the results may lead you to reject the candidate. If this happens, do these steps professionally:

Inform the candidate politely, preferably in writing
If possible, explain the reason clearly and factually (e.g., discrepancy in credentials, negative reference)
Keep proper records of the process in case of future disputes

Not every concern needs to lead to rejection. In some cases, it may be worth having a discussion with the candidate to clarify or reconsider.

Using Third-Party Screening Companies

Running background checks in-house can take up a lot of time and manpower, especially if you're hiring at scale or need to verify multiple types of data.

That’s why many employers in Malaysia work with third-party screening companies to streamline the process.

These companies handle verifying academic records, reaching out to previous employers, conducting criminal checks through official platforms, and more.

Pros:

You save time, especially during bulk hiring or urgent recruitment drives.
The information gathered is often more accurate, as these firms have direct connections with data sources.
Legal compliance is easier to manage, especially for checks involving PDPA, consent, and sensitive data.
You can customise the checks you need, maybe it’s just criminal and education, or a full package.

Cons:

Outsourcing comes with a cost, and pricing depends on the number and type of checks.
You’ll need to vet the screening vendor properly. Some companies may not follow best practices or be familiar with Malaysian regulations.
Turnaround time still depends on how fast institutions or referees respond, especially for manual verifications.

Before choosing a provider, ask about their data protection policy, turnaround time, and customer support.

A good screening company should also provide clear, written reports and be transparent about their methods.

FAQ

Can I run a background check without consent?

No. Under PDPA, you must get written consent from the candidate before collecting or verifying personal data.

Are there free background check options in Malaysia?

Some basic checks can be done manually, like calling references or reviewing public social media. But formal checks like criminal or credit records usually involve paid services.

Can I check if a candidate has a criminal record?

Yes, but not directly. You’ll need to go through a screening platform that has access to the Royal Malaysian Police’s database.

What should I do if I suspect a candidate gave false information?

Reach out to them first to clarify. If the issue remains, document it and make a hiring decision based on your company’s policies and the relevance of the information.

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