A Business Owner's Guide: Employment Visa Cost in Malaysia
- Chow Ping
- 4 days ago
- 5 min read
There's more to hiring foreign talent in Malaysia than just finding the right person and paying their salary.
There are visa fees, medical examinations, insurance premiums, and compliance requirements that most business owners don't account for when budgeting their first foreign hire.
Most business owners don't discover the full cost until they're halfway through the process — when backing out becomes expensive and embarrassing.
This guide breaks down the employment visa cost in Malaysia — every cost you'll face, so you can budget properly from day one.
The Real Employment Visa Cost in Malaysia
Malaysia offers several work visa categories, each with its own cost structure.
Employment Pass (EP)
The Employment Pass is your go-to visa for skilled foreign professionals, divided into three categories:
Category I — Senior positions earning minimum RM10,000 monthly, contracts up to 5 years. Families allowed.
Category II — Mid-level professionals earning RM5,000 to RM9,999 monthly, contracts up to 2 years. Dependants allowed.
Category III — Skilled workers earning RM3,000 to RM4,999 monthly, contracts up to 12 months (renewable twice). No dependants.
The base application fee through the Expatriate Services Division (ESD) is now RM2,000 as of September 2024 (up from RM800).
But that's just the starting line.
Once approved, you'll pay immigration endorsement fees:
EP endorsement: RM200 per year (RM300 for MIDA Key Posts)
Processing fee: RM125 per application
Visa fee (if applicable): Varies by nationality
For a 3-year EP Category I contract: RM2,000 (application) + RM600 (endorsement) +
RM125 (processing) + visa fees = RM2,743+
Professional Visit Pass (PVP)
The PVP works for short-term assignments where the employee stays on their foreign employer's payroll.
Application fee: RM1,200 (increased from RM800 in September 2024). Immigration charges RM90 per quarter.
For a 6-month PVP: RM1,200 + RM180 + visa fees = RM1,386+
Temporary Employment Pass (TEP)
TEPs target semi-skilled and low-skilled workers in manufacturing, construction, plantation, agriculture, and services. Costs include application fees, annual worker levies (sector-dependent), and mandatory insurance.
These range from RM3,000 to RM5,000 per worker annually.
The Hidden Costs — Don't Forget to Plan for This!
The visa application fee is just the tip of the iceberg.
Medical Examinations
Every foreign worker must undergo FOMEMA-approved medical screening: RM150 to RM300 per person.
Some workers need pre-arrival medicals in their home countries, then post-arrival screening in Malaysia. That's two sets of medical bills.
Security Clearance & Background Checks
Depending on nationality and role, security clearances cost RM100 to RM500 per applicant. Rush processing adds another RM200 to RM500.
Insurance Requirements (Mandatory)
Foreign Worker Hospitalisation and Surgical Scheme (FWHS) — Annual premiums: RM120 to RM150 per worker.
Foreign Worker Compensation Scheme (FWCS) — Premiums vary by industry risk: RM60 to RM300 annually per worker.
Document Preparation & Translation
Everything needs translation into English or Malay by certified translators: RM50 to RM150 per document. Add notarization (RM50 to RM100) and international courier fees (RM100 to RM300), and you're looking at RM500 to RM1,000 per applicant.
Dependant Pass Costs
Each dependant needs a pass. For a 3-year dependant pass: RM500 (application) + RM270 (endorsement) + RM50 (processing) + visa fees = RM838+
Spouse and two kids? That's RM2,514+ on top of the primary EP holder's costs.
Employer Pre-Qualification Costs
Before applying for an EP or PVP, your company must register with the ESD and meet minimum paid-up capital thresholds:
100% Malaysian-owned: RM250,000
Joint venture (minimum 30% foreign equity): RM350,000
100% foreign-owned: RM500,000
Foreign-owned in Wholesale/Retail/Trade: RM1,000,000
You'll also need updated SSM certificates (RM30 to RM50), recent financial statements (RM500 to RM2,000 if prepared by accountant), and company profile documentation.
Getting everything in order can cost RM1,000 to RM5,000 depending on complexity.
Real-World Cost Examples
Scenario 1: Senior Manager (EP Category I) for 3 Years
Position: Chief Technology Officer, RM15,000 monthly, with spouse and one child.
ESD application: RM2,000
EP endorsement (3 years): RM600
Processing fee: RM125
Medical examination: RM250
Document translation & notarization: RM600
Security clearance: RM300
FWHS insurance (3 years): RM450
Dependants (2 × applications, endorsements, processing, medicals): RM2,140
Total: RM6,465
Plus RM1,500 to RM3,000 for ESD registration if this is your first foreign hire.
Scenario 2: Short-Term Consultant (PVP) for 6 Months
RM1,200 (application) + RM180 (endorsement) + RM250 (medical) + RM400 (documents) + RM200 (clearance) = RM2,230
Scenario 3: Manufacturing Worker (TEP) for 2 Years
RM1,200 (application) + RM3,840 (levy) + RM300 (FWHS) + RM240 (FWCS) + RM300 (medical) + RM150 (clearance) = RM6,030
Cost-Saving Strategies
1. Plan ahead — If you plan 3-4 months in advance, you avoid rush charges. As of September 2024, processing times dropped from five to three working days for Tier 1, Tier 2, and Critical Sector companies.
2. Get documentation right the first time — Every rejection wastes the RM2,000 application fee plus time delays. Common mistakes include incomplete documents, incorrect salary thresholds, and mismatched job descriptions.
3. Know when to hire help — Complex cases (first-time hires, TEP quotas, complicated clearances, sector-specific agencies) benefit from professional assistance (RM2,000 to RM5,000). This often pays for itself by preventing rejections.
4. Budget for the full cycle — Include renewals, annual insurance, medical check-ups, and potential extensions. A 3-year employment actually spans two visa cycles.
5. Use duration strategically — Longer durations mean higher upfront endorsement fees but fewer renewals. Run the numbers both ways.
What Happens If You Don't Budget Properly
Application delays — No funds means stalled applications and confused new hires stuck overseas.
Rejected applications — Incomplete payments trigger automatic rejections.
Compliance penalties — Illegal employment fines start at RM10,000 per worker. You may be banned from hiring foreign workers for years.
Lost productivity — Every delay month is a month without the talent your business needs.
Immigration and LHDN don't accept "I didn't know" as an excuse. Fines for non-compliance often exceed original visa costs by 5 to 10 times.
Douglas Loh & Associates Can Help
After years of helping Malaysian businesses hire foreign talent, we've seen every possible cost surprise — and figured out how to prevent them.
We provide complete cost transparency upfront, handle documentation properly to prevent rejections, track expiry dates for optimal renewals, and manage ongoing compliance so you avoid penalties.
Your time is worth more than chasing medical certificates and translating diplomas. One rejection can cost RM3,000 to RM5,000 in wasted fees and delays. Our service fee often pays for itself by preventing that single mistake.
Do it right the first time, and the cost becomes a predictable line item in your hiring budget — not a crisis.
Want to focus on your business while we manage the boring paperwork for you?
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