July 11, 2023
Malaysia updates Labor Market Testing requirements for Employment Pass applicants
Effective 15 June 2023, Malaysian companies that seek to sponsor foreign workers for an Employment Pass (EP), including individuals with specialized skills, must now conduct a labor market test and advertise the job online for at least 14 days prior to filing the EP application. Employers that seek to hire foreign workers to fill available positions in Malaysia must advertise the positions on the Ministry of Human Resources’ national employment portal and conduct interviews with local applicants (e.g., Malaysian citizens) prior to hiring foreign workers and sponsoring them for an EP. Employers may only submit EP applications on behalf of foreign individuals after obtaining approval (i.e., an Advertisement Acknowledgment Letter) from the Malaysian Social Security Organization (SOCSO).
A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.
Full text of Tax Alert