Hiring of New Expatriates: Government Issues Further Clarifications

The Government of Malaysia issued Frequently Asked Questions (FAQ) – Advertisement of Vacancies on MYFutureJobs for the Hiring of Expatriates No. 2/2020 on 29 December 2020 (‘FAQ No.2’). The FAQ No.2 provides additional guidance pertaining to the new requirement to advertise vacant positions before expatriates may be hired to the position, which requirement came into effect on 1 January 2021.
Some salient new information in the FAQ No.2 are as follows:
  1. The requirement to advertise vacant positions is only applicable if companies wish to employ new expatriates by way of an Employment Pass. Companies who seek to recruit new expatriates into vacant positions vide a Professional Visit Pass or Resident Pass – Talent are not required to advertise the vacant positions.
  1. The following employers will enjoy automatic exemptions from advertising vacant positions before hiring new Employment Pass holders:-
  1. Companies whose intended new Employment Pass holders hold important positions (C-Suite & Key Posts) or receive a basic monthly income of not less than RM15,000.00;
  1. Representative offices and regional offices;
  1. Investors or shareholders who are directly involved in the company’s operations; investors refer to individuals who invest funds in Malaysia to achieve return of investment whilst shareholders are required to hold at least 30% equity shares and be appointed as the company’s director or hold other key positions; 
  1. Companies which receive expatriate employees from a parent company for the purposes of training or knowledge/ experience sharing between companies, and to meet the needs of the companies’ workforce;
  1. International organisations subject to the International Organisations (Privileges and Immunities) Act 1992 that appoint Foreign Recruited Staff; and
  1. Sports sectors for recruitment of athletes or professionals to join any sports organization/ club.
  1. The advertising requirement will not apply for the purposes of renewal of existing Employment Passes;
  1. After advertising vacant positions on the MYFutureJobs portal, companies are responsible to arrange for interview sessions with appropriate local candidates for the advertised positions, either on their own or in conjunction with PERKESO. Companies must complete and submit a Hiring Outcome Report to PERKESO for each advertised vacancy within 30 days after the vacancy is advertised; and
  1. If no suitable local candidate is found after the advertising process, companies are required to obtain a recommendation certificate from the Expatriates Hiring Committee before proceeding with Employment Pass applications (not applicable to the categories which enjoy automatic exemptions).
Further information may be obtained here.
Our earlier Alerts on the new advertising requirements may be found here and here.
The flexibilities and clarifications on the advertising requirements for the hiring of expatriates as stated in FAQ No. 2 is welcomed.
Alert by Sara Lau (Senior Associate) of the Employment Practice of Skrine