Residence Policy Index · Issue No 1 · August 2026

Living in Malaysia as a foreigner: how the state treats newcomers

Early dismissal leaves fourteen days to leave the country, however much time the permit still had to run.

85place of 97
48out of 100
DLeague
78-91place interval
In short

Malaysia Employment Pass at a glance

Main route
Employment Pass Category III: salary RM 5,000-9,999 a month, valid up to 5 years. The employer applies, registered with the ESD system, for an approved expatriate post. The pass is valid only in Peninsular Malaysia: Sabah and Sarawak have their own rules.
Key change
From 1 June 2026 thresholds went up: Category III from RM 3,000 to RM 5,000, II from RM 5,000 to RM 10,000, I from RM 10,000 to RM 20,000. The new thresholds also apply to renewals, with no transition; Categories II and III need a succession plan to pass skills to local staff.
Without an employer
Not for local work. The DE Rantau nomad pass (income from $24,000 a year in tech, $60,000 otherwise, up to 24 months) does not allow work for a Malaysian company and does not lead to permanent residence.
Processing time
The service standard is 5 working days for a complete application; in practice usually 1-3 weeks, sometimes over 6. Before that the employer spends 2-4 weeks registering and getting the post approved.
Cost
An application charge of RM 2,160 including tax, then RM 200 a year for the pass and RM 125 processing, plus a visa fee depending on nationality. Per family member: RM 540 to apply, RM 90 a year and RM 50 processing.
Permanent residence and citizenship
You can formally apply for permanent residence after 5 years, but the decision is entirely discretionary, criteria are unpublished and approvals are rare. Citizenship after 10 of 12 years; dual citizenship is banned.
Taxes
A progressive scale up to 30%; for the first 182 days, while you are a tax non-resident, salary is taxed at a flat 30%.
How newcomers are treated

How Malaysia treats foreigners who move there

Malaysia readily hires foreigners, but only through an employer and only as temporary residents. Applications are online and the family can come along: since June 2026 the Dependant Pass is open to all three categories, and a spouse can work through an immigration endorsement without switching passes. There is no address registration and no integration course; pass holders open bank accounts routinely, but in person, with an employer letter and a minimum deposit of RM 250-2,000.

Status is fragile. The pass is tied to the company named on it: changing jobs means the full process again, including a newly approved post. If employment ends early you get 14 days to leave, however long the pass had left; a special pass of up to 30 days for RM 100 is discretionary and allows neither work nor a change of status. Decisions cannot be challenged on the merits in court, and overstaying risks a detention depot and an entry ban.

Rules change for people already living there: the June 2026 reform applies to renewals, so a Category III holder earning RM 4,000 will fail the new threshold at renewal. While a renewal is pending you may stay on an expired pass but may not work.

Mass raids in 2025-2026 (over 130,000 arrests, over 92,000 removals) target irregular migrants. But by 31 May 2026, 2,324 people holding valid passes, mostly visit passes, had been detained for "misuse of passes". We found no pressure on Employment Pass holders.

Settling for good is nearly impossible: permanent residence is granted at discretion and rarely, and citizenship requires 10 of 12 years, Malay and giving up your previous citizenship. Foreign children get into state schools only if there are places, with approval and for a fee, so most attend international schools.

Passport

What your passport changes

The index score ignores nationality. This is what changes for citizens of specific countries.

US citizens

No visa needed for a short visit. To work, the same route as everyone: an approved pass and a Visa With Reference (VDR).

Nationals of Bangladesh and China

The DE Rantau nomad pass is issued to them only against a guarantee from a Malaysian bank.

Ukrainian citizens

No visa needed for a short visit. To work, the same route as everyone: an approved pass and a Visa With Reference (VDR).

Russian and Belarusian citizens

No visa needed for a short visit: neither country is on the Immigration Department's list of visa-required nationalities. When we checked, we found no nationality restrictions on the Employment Pass route; to work, as most foreigners, you need a Visa With Reference (VDR) based on an approved pass.

Place among 97

Malaysia on the common scale

483050658090
Each tick is a country, all 97 on one scale. The bands are leagues, the bold tick is Malaysia

The place interval 78-91 shows where the country lands when the data is nudged and the index is recalculated. One place of difference in the table means nothing; a difference of a league means something.

League DYou are a guest herebelow 50 pointsThe state is not building you a future and, to its credit, usually does not hide it. You can come and work; you cannot count on permanent status, full family rights or protection when you lose your job.
What the score is made of

Seven categories

Agency processing37
Pressure on newcomers53
Status security31
Access to entry74
Path to citizenship7
Family rights55
Settling in80

The thin mark on each bar is the average across 97 countries

The strongest category here is Settling in: 80 out of 100, against a 97-state average of 69.5. The weakest is Path to citizenship: 7 against 57.1. Above the world average: 2 out of 7.

Where the index stops answering

This score was not calculated about you

All 97 states are calculated for one applicant: 35 years old, income of $2,500 and $3,856 a month before tax, passport not counted, the most accessible route that is actually in use.

Your passport, your income and your family do not change the table. They change which of its lines apply to you. A different income makes entry read differently, a family makes the family category read differently, and your passport makes everything read differently.

Questions and answers

Questions about moving to Malaysia

How long does a Malaysia Employment Pass take?

The service standard is 5 working days for a complete application; in practice usually 1-3 weeks, sometimes over 6. Before that the employer spends 2-4 weeks registering and getting the post approved.

Can I get residency in Malaysia without an employer?

Not for local work: the Employment Pass is issued only through an employer. Remote workers can use the DE Rantau nomad pass for up to 24 months, but it does not allow work for a Malaysian company and does not lead to permanent residence.

How much does a Malaysia Employment Pass cost?

An application charge of RM 2,160 including tax, then RM 200 a year for the pass and RM 125 processing, plus a visa fee depending on nationality. A family member: RM 540 to apply, RM 90 a year and RM 50 processing.

What happens to my pass if I lose my job in Malaysia?

If employment ends early you get 14 days to leave, however long the pass had left. A special pass of up to 30 days is discretionary and allows neither work nor a change of status.

When can I get permanent residence and citizenship in Malaysia?

You can formally apply for permanent residence after 5 years, but the decision is entirely discretionary and approvals are rare. Citizenship after 10 of 12 years; dual citizenship is banned.

Are expats welcome in Malaysia?

Foreign professionals are hired, but as temporary residents: status depends on the employer, dismissal means 14 days to leave, and the 2026 thresholds apply to renewals too. Raids target irregular migrants, but people holding valid passes have also been detained for breaching their conditions.

Nearby in the table

Neighbours by place

How this is calculated

Method and sources

97 states, 26 indicators, seven categories, 2,522 scores. Every score has a source and a source class: primary means the texts of laws and government portals; reliable secondary means reports by international organisations, tax reviews by audit firms and specialist legal publications; weak means community posts and single secondary sources. The classes add up to a confidence level for the country, and a country with low confidence gets neither a score nor a place.

Every indicator is scored against a fixed ruler, not against its neighbours. Adding new countries therefore does not move the old ones, and a change in a score means a change in policy and nothing else.

A high place does not mean a good country. It means one thing: the state machine treats newcomers predictably and by the rules. Living there may be expensive, dull or hot; that is not our question.

We make mistakes and we will go on making them: policy changes faster than any database. Our answer is not a pose of infallibility but a visible trail of corrections. Every correction is published: what it was, what it became, the source and the reason for the error. The corrections log opens with the second issue, together with the first block of changes.