Requirements to Hire Foreign Workers in Malaysia: Documents, Fees & How-To (2025)

Many Malaysian businesses need foreign workers, but not all of them follow the proper hiring process.

Some assume they can bypass regulations, while others rush into hiring without understanding the legal steps. 

Unfortunately, these mistakes can lead to penalties, rejected applications, or even bans from hiring foreign workers in the future.

If your business is looking to hire foreign employees, kindly take your time to read this article.

It will help you understand the right way to do it legally, efficiently, and without unnecessary headaches.

Requirements for Hiring Foreign Workers

Bringing in foreign workers isn’t as simple as just hiring someone from another country.

Malaysia has strict regulations to control the employment of non-citizens to ensure they are legally hired and fairly treated.

The Malaysian government only allows foreign workers in specific sectors, which include:

• Manufacturing

• Construction

• Agriculture

• Plantation

• Services

Before applying, employers must also obtain quota approval from the One Stop Centre (OSC) under the Ministry of Human Resources.

This step confirms that your business genuinely needs foreign labor and cannot fill the role with local workers.

Besides that, foreign workers must meet these conditions:

• Be between 18 to 45 years old.

• Pass a medical examination in their home country.

• Be from an approved source country (such as Indonesia, Bangladesh, Nepal, the Philippines, and India).

• Not be listed under prohibited foreign individuals according to Malaysia’s immigration laws.

Hiring foreign workers without following these rules can lead to serious consequences, including legal penalties and blacklisting from hiring in the future.

Application Procedures for Hiring Foreign Workers

Hiring foreign workers involves a structured process, which is divided into two phases: before arrival and after arrival.

Phase 1: Before the Worker Arrives in Malaysia

1. Employers submit a Visa with Reference (VDR) application through the Foreign Workers Centralized Management System (FWCMS).

2. The worker must undergo a health screening at a recognized medical facility in their home country.

3. Once the application is approved, the worker obtains an Entry Visa from the Malaysian Representative Office in their home country.

4. The employer arranges for the worker’s arrival at an approved entry point.

Phase 2: After the Worker Arrives

1. Upon arrival, the employer must clear the worker through immigration within 24 hours.

2. The worker must undergo a medical check-up at a registered FOMEMA clinic within 30 days.

3. If the worker passes the health check, they will receive a Temporary Employment Pass (VP(TE)), which allows them to work legally in Malaysia. If the worker fails the medical check-up, the employer must arrange for repatriation.

4. The VP(TE) is only issued at the Immigration Office where the VDR was approved.

Skipping any of these steps can lead to delays, fines, or even the rejection of your application.

Extension of VP(TE) (Temporary Employment Pass)

The Visit Pass (Temporary Employment) [VP(TE)] is a work permit issued to foreign workers in approved sectors.

Without a valid VP(TE), foreign workers cannot be legally employed, and businesses that fail to comply may face penalties, fines, or legal action from immigration authorities.

The VP(TE) is valid for one year and must be renewed annually if the worker is to continue employment.

Employers can apply for an extension three months before the pass expires.

To apply for an extension, employers must submit:

• A valid passport with at least 12 months remaining.

• An official request letter for the extension.

• Employer identification documents (such as SSM certificates or Form 49).

• An updated Health Insurance Protection Scheme (SPIKPA).

• A valid Foreign Workers Compensation Scheme (FWCS).

• A FOMEMA medical examination report (for second and third-year extensions).

The cost of renewing the VP(TE) depends on the sector the foreign worker is employed in. Below are the standard fees:

While the VP(TE) allows foreign workers to be employed in Malaysia, there are strict regulations that employers must follow:

• Family members of foreign workers cannot accompany them to Malaysia.

• Foreign workers cannot change employers or switch employment sectors.

• Foreign workers are not allowed to work as front-liners (such as cashiers or sales representatives).

• Marriage to locals or other foreign citizens is prohibited while under VP(TE).

If the VP(TE) is not renewed before expiration, the worker’s status becomes illegal, and employers may face fines or legal action.

In such cases, the employer must report to the Immigration Enforcement Division for further instructions.

Employment Period and Repatriation

Foreign workers can stay in Malaysia for up to 10 years, but those registered under special programs like 6P may have shorter work permits.

When a worker’s employment contract ends, the employer must take responsibility for repatriating them to their home country. This includes:

• Submit a Check Out Memo (COM) for worker departure.

• Covering repatriation costs, including flights and transport.

• Claim the security bond refund (if the worker leaves legally).

Foreign workers under VP(TE) cannot change employers or sectors and cannot bring family members to live in Malaysia.

Fees for VP(TE) Extension

VP(TE) extension fees must be paid by the employer to the Immigration Department. The total cost varies based on sector and nationality. Below are the fee details:

• Levy Fees (varies by industry)

• VP(TE) processing fee: RM60

• Security bond: RM250 – RM1,500 (based on nationality)

• Visa fees: RM15 – RM50 (based on nationality)

Payments are made via cash or bank draft to the Director General of Immigration Malaysia.

Abscondment of Foreign Workers

Sometimes, foreign workers leave without notice or fail to return after visiting their home country. When this happens, they are considered absconded.

Employers must report absconded workers to the Immigration Department by providing:

• Employer’s identification documents.

• A copy of the worker’s passport.

• A police report.

• A completed Abscondment Form.

Once reported, absconded workers will be blacklisted from re-entering Malaysia, and the employer’s security bond will be revoked.

Failing to report absconded workers can result in fines or legal action against the employer.

Foreign Workers (Coloured) Identity Card (i-Kad)

All foreign workers in all permitted sectors under the VP(TE) permit receive an i-Kad, which serves as their official identification card.

iKad is valid for the same duration as the VP(TE). It is issued automatically at no additional cost to employers.

The i-Kad is color-coded to indicate the worker’s employment sector.

Employers must keep track of their workers’ i-Kads and ensure they have them at all times for identification purposes.

If an i-Kad is lost or damaged, employers must report it immediately to the authorities and request a replacement.

FAQs

What is the VP(TE), and who is eligible to apply for it?

The Visit Pass (Temporary Employment) (VP(TE)) is a work permit for foreign workers in specific sectors. Employers must apply for it on behalf of eligible workers who pass medical screenings and meet the age and nationality criteria.

What documents do I need to submit to hire foreign workers?

Employers must submit:

• Business registration documents (SSM certificates)

• Worker’s passport copy

• Quota approval letter from the Ministry of Human Resources

• Medical clearance certificate from FOMEMA

• Employment contract

How long is the VP(TE) valid, and how do I extend it?

The VP(TE) is valid for one year and must be renewed before expiration. Employers must apply three months before expiry, submitting updated medical reports, employment records, and proof of insurance coverage.

What happens if my foreign worker absconds?

Employers must report absconded workers to the Immigration Department to avoid penalties. Failure to report could result in forfeited security bonds and legal repercussions.

What is the cost of extending the VP(TE)?

The extension cost varies by sector and nationality but includes:

• Levy fees (RM410 – RM1,850 depending on industry)

• Processing fee (RM125)

• Medical insurance and compensation scheme fees

What is an i-Kad, and why is it important?

The i-Kad is an identification card for foreign workers, valid for the same period as their work permit. It helps authorities and employers track worker status and identity.

So, if you are planning to hire foreign workers, stay updated on regulations and follow the proper procedures.

Doing things the right way not only helps your business avoid unnecessary issues but also creates a positive and productive workplace for everyone.

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