MALAYSIAN BIOTECHNOLOGY CORPORATION SDN BHD (Company No.

691431-D)

GUIDELINES ON EMPLOYMENT PASS APPLICATION IN MALAYSIA

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3 JULY 2009

AUTHORS: MS. KANIMOLI RAMAIAH

Please note that the information contained herein is intended to be used for guidance and knowledge only. Whilst every effort has been taken to ensure the accuracy and completeness of the contents at the time this Guidance Paper is issued, inaccuracies may exist due to several reasons including changes in circumstances and/or amendments brought about due to a change in the policy (s) or prevailing rules or regulations. BiotechCorp does not hold out, warrant or guarantee that reliance on the information contained herein will result in the granting or approval of the matters applied for. BiotechCorp welcomes feedback and comments on this document. Feedback and comments can be sent to info@biotechcorp.com.my and by stating clearly in the subject line the document title and document Reference No.

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TABLE OF CONTENTS .........................................................................................

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OBJECTIVES AND INTRODUCTION........................................................................ 1 1.1 Objectives .................................................................................................... 1 1.2 Introduction .................................................................................................. 1 SCOPE ........................................................................................................................ 1 2.1 Immigresen Act 1993 and Biotechcorp....................................................... 1 2.2 Category of Expatriates............................................................................... 2 2.3 Criteria for Biotechnology Knowledge Workers .......................................... 2 2.4 IDM's General Requirements ...................................................................... 3 TYPES OF PASSES ................................................................................................... 3 3.1 Main Passes of Work Permit....................................................................... 3 3.2 Supporting Passes ...................................................................................... 4 APPLICATION PROCEDURE Employment Pass ................................................ 5 4.1 Procedure .................................................................................................... 5 4.2 Employment Pass Application .................................................................... 6 4.3 Dependents Pass Application DP11A ..................................................... 7 APLICATION PROCEDURE Professional Visit Pass.......................................... 7 LIST OF DOCUMENTS REQUIRED FOR SUBMISSION OF APPLICATION ..... 8 FEES FOR EMPLOYMENT AND DEPENDENT PASS ............................................ 9 RESTRICTIONS UNDER EMPLOYMENT PASS.................................................... 10 IMMIGRATION PROCESS FOR EMPLOYMENT PASS ........................................ 11

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1. OBJECTIVES AND INTRODUCTION 1.1 Objectives The objective of this paper is to provide interested applicants with information on the procedures and requirements in relation to an Employment Pass application in Malaysia. 1.2 Introduction Biotechnology has been identified as the next engine and driver of economic growth for Malaysia. It is envisioned that biotechnology will be able to improve the quality of life, generate new wealth creation and income for both rural and urban population and improve the socio-economic status of people as a whole. To spur biotechnology growth, the Government launched the National Biotechnology Policy in 2005 and introduced the designation of BioNexus Status to qualified biotechnology companies, making them eligible for privileges and incentives offered by the Government. BioNexus Status is a recognition awarded by the Malaysian Government, through Malaysian Biotechnology Corporation Sdn Bhd (BiotechCorp), to qualified companies that participate in and undertake value-added biotechnology activities. BioNexus Status companies enjoy a set of incentives and privileges contained within the BioNexus Bill of Guarantees which includes the freedom to source knowledge workers globally. In this respect, the Malaysian Biotechnology Corporation (BiotechCorp) acts as a one-stop-centre providing support, facilitation and advisory services for a range of matters including immigration assistance for BioNexus status and life science companies in general.

2. SCOPE 2.1 Immigration Act 1963 and BiotechCorp In Malaysia the entry of foreign nationals is governed by the Immigration Act 1963 which also determines the types of employment passes that can be applied for by those who aspire to work in this country. The administration authority for immigration related matters is the Immigration Department of Malaysia (IDM), which is placed under the jurisdiction of the Ministry of Home Affairs. BiotechCorps support in relation to immigration matters encompass advice on immigration qualifying and general criteria for knowledge workers, documentation for pass applications, representation at IDM for DP10 submissions (upon request only), advice on DP 11 procedures as well as matters relating to the immigration requirements for family members of the expatriate.

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2.2 Category of Expatriates i. Key Posts these are high (strategic) level managerial posts in foreign owned private companies and firms operating in Malaysia. These posts are important for the foreign companies to safeguard their interests and investments in Malaysia. Holders of these positions are responsible for determining the companies policies and direction to achieve their business goals. ii. Executive Posts these are intermediate level managerial and professional posts which require academic qualifications, work experience, skills and competencies related to respective positions. These expatriates are responsible for implementing company policies and supervising staff. iii. Non-Executive Posts These are technical positions that require technical or practical skills. While there is a general criteria that must be fulfilled by expatriates desiring to work in Malaysia, for the biotechnology sector there are some additional requirements, namely: 2.3 Criteria for Biotechnology Knowledge Workers Biotechnology knowledge workers fall into two main categories: i. Management and Subject Matter Experts 5 or more years of experience in managing (or serving a post in management capacity) a biotechnology business or venture; For subject matter experts, five (5) or more years of direct experience in areas relevant to the biotechnology industry (agricultural, healthcare and industrial biotechnology), including but not limited to: - Product discovery and development e.g. pre-clinical and clinical development; - Biomedical engineering; - Bio-processing; - Quality assurance; - Regulatory affairs; - International business development; and - Accreditation and certification; A Bachelors degree or higher in biotechnology or life sciences or a discipline that is relevant to biotechnology business.

ii.

Researchers or Technical Experts Five (5) or more years of research or technical experience in a field relevant to the business being conducted by a BioNexus Status company; and Preferably with a Bachelors degree or higher in biotechnology or life sciences or related disciplines.

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The general criteria that must also be fulfilled are as follows: 2.4 IDMs General Requirements The following general criteria apply to all industries and sectors: i. Companys Paid up Capital Equity 100% Malaysian Company Joint Venture (Malaysia and Foreign) 100% foreign owned Company

Paid up Capital RM250,000 RM350,000 RM500,000

ii. Salary Minimum salary of RM5, 000 per month paid in Malaysia. iii. Minimum Age 27 years. iv. Working experience Minimum 5 years in related field. For those who fulfil the two sets of criteria above, there are two Pass options that will enable them to work in Malaysia. 3. TYPES OF PASSES 3.1 Main Passes of Work Permit Below are two types of passes currently being supported by Biotechcorp. i. Employment Pass The Employment Pass is the usual pass issued to expatriates working and drawing salaries in Malaysia. It is given for a minimum of 24 months but not exceeding 60 months for each period. This Pass will enable the expatriate to live and work in Malaysia, legally. For those who are eligible for an expatriate position but do not satisfy all required criteria, a PLKS (Pas Lawatan Kerja Sementara) may be issued in place of an Employment Pass. The PLKS is only valid for a year, renewable three months before its expiry. The PLKS is subject to levy payment. The levy amount varies from sector to sector, for the latest levy amounts please refer to www.imi.gov.my ii. Professional Visit Pass. This type of Pass is issued to those who will be in Malaysia for a minimum of 2 weeks to 12 months with the sole purpose of technology transfer. Incumbents holding this Pass are prohibited from receiving a salary or any mode of payment in Malaysia. Prohibited to receive salary does not mean the PVP holder will not be required to pay income tax. For PVP holders from countries with DTA (Double Taxation Agreement) with Malaysia, income tax payment will be required if they were to stay for more than 182 days in total in a year, PVP holders from countries where there are no government to

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government DTA will be required to pay income tax if they were to remain in Malaysia for 61 days or more. 3.2 Supporting Passes Expatriates who live and work in Malaysia are allowed to apply for all or any of the following Passes for their family members: i. Dependent Pass This pass is usually issued to the spouse and children of the expatriate. Children who are below the age of 18 would automatically qualify for this Pass. If these children need to study in Malaysia, Permission to Study would be stamped on the Dependents Pass. The tenure of this Pass will usually be synchronized with that of the expatriates, subject to passport validity. For expatriate spouses who wish to be employed, upon successfully securing employment, Permission for Employment will be stamped on the Pass. ii. Student Pass This Pass is issued to expatriates children who are above 18 and studying in colleges. If the expatriates child has attained 21 years of age but is still studying, he/she will also be entitled to this Pass. iii. Social Visit Pass This Pass is issued to parents of expatriates who live with him/her and children of expatriates who have attained the age of 21 but still live with his/her parent who is the expatriate. iv. Work Permit This is issued to the expatriates maid if he/she brings one from the country of origin. Tenure for the maid will be in accordance to the expatriates Employment Pass.

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4. APPLICATION PROCEDURE EMPLOYMENT PASS 4.1 Procedures i. Step 1 The company that wishes to bring in an expatriate, must first identify the position. A Position Application (DP10) will have to be submitted to the Expatriate Committee (EC) for approval. The company will be given an Acknowledgement Letter (Diagram 1). There will be a Web Reference Number on the letter which can be used to check on the application status at www.imi.gov.my (Diagram 2). The EC would convene twice a week to deliberate and decide on Position Applications.

Akuan Penerimaan

Web Reference Special number

Diagram 1 Sample of Acknowledgement Letter

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Key in web reference here

Diagram 2 - Web Page to check status of application

ii.

Step 2 Once the position has been approved by the EC, the company can then submit an application to apply for an Employment Pass for the expatriate concerned. At this juncture a Dependent Pass, Social Visit Pass or other relevant pass can also be applied for at the same time. Expatriates from some countries can enter Malaysia using a Social Visit Pass and later convert that into an Employment Pass. Expatriates from selected countries will have to obtain a `Calling Visa letter before they can enter Malaysia. Latest information on this can be obtained at www.imi.gov.my. Detailed processes are provided below:

4.2 Employment Pass Application After position approval from the EC, the company can submit an application for an Employment Pass. The applicant, depending on nationality, can decide on one of two methods below to obtain the Employment Pass upon arrival in Malaysia: i. Reference Visa The Reference Visa letter (Calling Visa Letter) will be issued by IDM. The applicant has to bring the Letter to the Malaysian Embassy in his/her country of residence to have a special Social Visit Pass endorsed onto the passport. Upon entry into the country, the applicant must make a payment (depend on the country) and obtain the actual Employment Pass from IDM within 7 days of arrival. ii. Journey Performed (JP) Visa Applicants from selected countries enter Malaysia with a Social Visit Pass which can be converted to an Employment Pass upon arrival in Malaysia. JP Visa costs RM 500.00. This has to be done within 7 days of arrival into Malaysia.
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4.3 Dependents Pass Application DP11A Married expatriates with Employment Pass are entitled to apply for a Dependent Pass. The application can be done together with the Employment Pass application. i. Eligibility Criteria for Dependents Husband/wife and children below 18. 5. APPLICATION PROCEDURE PROFESSIONAL VISIT PASS For a Professional Visit Pass (PVP), companies that decide to bring in foreign expertise to transfer technology in Malaysia must have a collaborating partner company overseas to provide the technology. A memorandum of understanding must be signed by both parties before the PVP process commences. i. Step 1 Company submits an application to the Income Tax Department to inform the department of its intention to bring in foreign expertise. An acknowledgement letter will be issued by the Income Tax Department. ii. Step 2 Company then submits a full PVP application together with the Income Tax acknowledgement letter to the PVP counter at IDM, Putrajaya. The processing period is between 21 to 30 days. Once the application is approved, a Reference Visa (Calling Visa) Letter will be issued to the applicant company. This letter must be sent to the foreign expert who will have to bring it to the closest Malaysian Embassy to have a Social Visit Pass endorsed into the passport. Upon arrival in Malaysia, payment (RM 90.00 for 3 months, Visa - According to nationality) must be made to IDM and a PVP endorsement be obtained for the passport. Note: PVP holders whose stay in Malaysia is up to 12 months can apply for Dependent Passes for their immediate family.

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6. LIST OF DOCUMENTS REQUIRED FOR SUBMISSION OF APPLICATION Document Supporter Employment Contract or agreement, to be stamped RM 10 Cover Letter and Letter of Authorization Company CCM (form 9, 24 and 49) Job description for the position applied Personal Bond, to be stamped RM10 Organization Chart with expatriates position Companys product brochure Company profile from CCM Applicants Application forms DP10 and DP11 Applicants Two Passport photo size photographs Applicants Copies passport all pages Applicants Resume include the educational background, qualifications and experiences Applicants educational qualification Dependant form DP11A Original civil marriage certificated translated and certified by relevant embassies Form IMM 12: Visit Pass Application Form IMM 55: Extension of Visit Pass Form IMM 38: Visa Application for noncommonwealth Letter of Confirmation from the company/Employer regarding the expatriate admission status to Malaysia Training Schedule/program for PVP on Training or seminar Income tax declaration letter from income tax department Letter from overseas institution if foreigner is sent for practical training Copy of Employment Pass Sticker and bio data Companys three years audited accounts Copy of Expatriates EA (for renewal only) For latest list of documents, please log on to http://www.imi.gov.my 7. FEES FOR EMPLOYMENT AND DEPENDENT PASS: Expatriate : RM200 per year per expatriate for Employment Pass RM 50 for processing RM 90 per dependent RM 50 for processing DP10 DP11 DP11 A PVP

Dependent:

Payment via Bank Draft made out to `Ketua Pengarah Imigresen Malaysia.

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8. RESTRICTIONS Expatriates holding Employment Passes are restricted from engaging in the following activities: i. ii. Not allowed to hold other job(s) besides the current job which has been issued with the employment pass; Not allowed to participate in illegal activities such as the smuggling of drugs into or out of the country and /or engage in other illegal activities; and Not allowed to participate in activity such as Missionary, provocative or politics instigative, which is considered sensitive, and a threat to national security.

iii.

Employment Pass holders must also ensure adherence to any new regulation introduced by IDM from time to time. The Following are the relevant agencies that applicant will have to liaise with when applying for an Employment or Professional Visit Pass. Immigration Malaysia Jabatan Imigresen Malaysia Tingkat 1-7, (Podium) No. 15 Persiaran Perdana , Persint 2. 62550 Putrajaya. Malaysia No. Tel 03-88801000 No. Faks 03-88801200 www.imi.gov.my Company Commission Malaysia Suruhanjaya Syarikat Malaysia, Tingkat 2 &10-19, Putra Place, 100 Jalan Putra 50622 Kuala Lumpur No. Tel 03-40476000 No. Faks 03-40476111 www.ssm.com.my Inland Revenue Board Lembaga Hasil Dlm Negeri, Tingkat 16, Blok 8A, Komplek Bangunan Kerajaan, Jalan Duta 50600 Kuala Lumpur No. Tel 03-62091000 No. Faks 03-62013372 www.hasil.org.my

BiotechCorp assist biotechnology companies in the following ways: i. For Bio Nexus status companies: Provide advice on employing foreigners in Malaysia; Provide assistance in preparing documentation to be submitted to IDM; and Represent Bio Nexus companies to submit application, if requested by the company. For non Bio Nexus biotechnology companies: Provide advice on employing foreigners in Malaysia; and Provide assistance in preparing documentation to be submitted to IDM.

ii.

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Reference 1. Ministry of Home Affairs www.moha.gov.my Immigration Department Malaysia www.imi.gov.my Malaysian Biotechnology Corporation www.boitechcorp.com.my Inland Revenue Board, Malaysia www.hasil.org.my Companies Commissioner Malaysia www.ssm.com.my

2. 3.

4. 5.

Contact For further information or clarification, please contact: Vice President Facilitation, Client Support Services Division Malaysian Biotechnology Corporation Sdn Bhd Level 23 Menara Atlan 161 Jalan Ampang 50450 Kuala Lumpur T: 03 2116 5588 F: 03 2116 5528 E: info@biotechcorp.com.my
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10.

IMMIGRATION PROCESS FOR EMPLOYMENT PASS

Submission of application to BiotechCorp by BioNexus Company

BiotechCorp reviews the Application & issues a supporting letter

If incomplete

Request client to amend and fulfil the requirement s

Submission to IDM for EC approval

JKPD Committee Approval

In case of non acceptance/rejection

Request client to amend and fulfil the requirements or appeal

If approved submit the Employment Pass application

Immigration department Approval

In case of non acceptance / rejection

Request client to amend and fulfil the requirements

Complete payment and obtain the EP sticker in passport.

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