HR: Malaysia introduces not-quite PR for long-term expats

Malaysia is notoriously difficult when it comes to trying to get Permanent Residency. Compare that to Singapore where foreign talent is welcomed and PR is a much simpler prospect and some of the reason for the development of Singapore's financial sector at the expense of that in Malaysia - which a decade ago was in pole position as the only centre where western, oriental and Islamic banking fully intersected, a position upon which it did not capitalise.

Malaysia wants people to bring their money and skills - but not their political input. As a result, partial residence measures have been introduced - which include precluding commenting on political matters.

The most successful began as a scheme to attract retirees. Called the "My Second Home" program, it was in effect a long-term residential multiple entry visa with some very attractive tax breaks. The qualifying age has been reduced and the ban on local employment partially lifted.

In July last year, the qualifying criteria for permanent residence were drastically amended and now include substantial investment requirements. The previous allowance (subject to conditions) for long-term expats to convert to PR was, effectively, removed.

The new pass - called a "Residence Pass" is a half-way house. It allows a person who has already demonstrated a commitment to living and working in Malaysia through the use of an Employment Pass to convert that EP to the RP. There are three principle advantages of converting: first: it will allow for a much longer period of employment - up to ten years; secondly, it will allow free transfer of employment - in short, for employment purposes holders of an RP will be treated in a way that is similar to PR or citizens. And, for many a vitally important point: a spouse will also be able to work as will children below 18 years old without needing their own Pass.

But the RP is not available to all: it is for those who work in key economic sectors as defined by the Economic Transformation Programme. Relevant qualifications and work experience will be necessary as will a demonstrably high level of professional work.