Section 8: Employment of Foreign Workers – Unskilled

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Section 8: Employment of Foreign Workers – Unskilled

PKFZ Rules & Regulation
Section 8: 
Employment of Foreign Workers – Unskilled

8.5.0
Employment of Foreign Workers – Unskilled
8.5.1
In Malaysia, foreign workers can be employed in the construction, plantation, service (domestic servants, restaurant workers, cleaners, workers in cargo handling, workers in welfare homes, launderettes and island resorts, and caddies on golf clubs) and manufacturing sectors.
8.5.2
Only nationals from specified countries are allowed to work in the selected sectors as follows:
8.5.3

Criteria for recruiting foreign workers for the manufacturing sector – unskilled

1) Export Orientated – Manufacturer

  • The export value must be at least RM50 million, or
  • The percentage of export must be at least 50% and comply to one of the following criteria:
    1. The value of local content must be at least 40%, or
    2. Value adding for the product must be at least 30%, or
    3. Capital Investment per employee ratio must be at least RM100,000.

The eligibility ratio of local worker to foreign worker is 1:3.  

2) Non Export-Orientated Manufacturer :

  • The paid-up capital must be at least RM100,000; and
  • The sales value must be at least RM2 million; and comply to one of the following criteria:
    1. The value of local content must be at least 40%, or
    2. Value adding for the product must be at least 30%

The eligibility ratio of local worker to foreign worker is 1:1.

3) Electric and Electronics Companies

The eligibility ratio of local worker to foreign worker is 2:1, for both the export and non-export orientated manufacturers.

8.5.4
An annual levy on foreign workers is imposed. The levy for a foreign worker in the manufacturing, service and construction sectors is RM100 per month. The levy is paid in advance by the employer and is deductable from the foreign worker’s salary.
8.5.5

All foreign workers should hold a PLKS (Permit Lawatan Kerja Sementara) in order to work legally. The employer of newly-arrived foreign workers has 14 days to make the application and obtain the PLKS for the foreign workers employed.