MalaysiaEntry rules Malaysia to Allow Expat Spouses to Work Starting January 2027
Malaysia's Budget 2027 introduces new work rights for spouses of expatriates, enhancing the country's appeal to foreign talent. The changes will take effect on January 1, 2027.
In a move to attract global talent and strengthen its position as a hub for expatriates, Malaysia has announced significant changes to its immigration policies as part of Budget 2027. Effective January 1, 2027, spouses of expatriates holding a Category I Employment Pass will be allowed to work in the country.
New Work Rights for Expat Spouses
The new policy enables spouses who hold a Dependant Pass to seek employment in Malaysia. This initiative aims to support expatriates by allowing their partners to continue their professional careers while living in the country.
Support for Digital Nomads
Additionally, the Malaysian government is extending the stay of certain remote workers under its digital nomad framework. Professionals currently residing in Malaysia with a Professional Visit Pass (Nomad category) will be eligible for a two-year extension, provided they meet the necessary requirements.
Incentives for Global Services Hubs
Budget 2027 also includes enhanced incentives for companies operating under the Global Services Hub (GSH) Scheme. New and existing companies will benefit from a reduced corporate tax rate of 5% on qualifying income, with the possibility of extending incentive periods for up to 30 years.
Tax Relief for Financial Operations
Companies involved in treasury and fund management activities will receive additional tax benefits, including exemptions from withholding tax on qualifying interest payments and stamp duty on intercompany loan agreements. These measures aim to bolster Malaysia's attractiveness as a financial center.
Overall, these changes reflect Malaysia's commitment to enhancing its immigration policies and attracting skilled professionals and their families, thereby fostering a vibrant expatriate community.