This GMS Flash Alert reports on two recent immigration developments in Malaysia: the addition by the Immigration Department of Malaysia of a new type of Pass for potential or existing investors in Malaysia and visa exemptions for entry into Malaysia for citizens of Kosovo.
WHY THIS MATTERS
Foreign investors or business visitors who frequent Malaysia or need an extended stay in Malaysia to survey investment opportunities or to set up a factory / business in Malaysia, negotiate agreements, etc., would benefit from the new Pass as it offers a stay period in Malaysia of up to 12 months compared to the current Social Visit Pass. The duration of the Social Visit Pass ranges from 30 to 90 days for each entry, depending on the country issuing the passport.
The Investor Pass is under the purview of the Malaysian Investment Development Authority (“MIDA”). MIDA is a statutory body whose mandate is to harmonise government promotion efforts, optimise resources, and establish effective, structured investment promotion agency governance.
Applications for the Investor Pass need to be supported by MIDA before the Immigration Department of Malaysia processes the Pass application.
On the the visa-free entry to all Kosovars, it is applicable for social visit purposes only. When entering Malaysia for work purposes (e.g., employment or assignment to Malaysia), the visa is still applicable.
More Details
Investor Pass
The Investor Pass was launched on 1 April 2025,1, 2 and the following are the eligible categories of investors:
- New Investor – Potential investors who have not had any investment record in Malaysia.
- Investor in Pipeline – Potential investors who have been identified as interested in making investments in
Malaysia, are currently in negotiations with the Malaysian government, or have applied to MIDA for project approvals.
- Existing Investor – Investors who have investment records in Malaysia and SSM-registered companies but are not under the employment of the company or any companies in Malaysia. This “Existing Investor” category is only available for the manufacturing and selected services sectors under MIDA’s purview. Sectors governed by other agencies will be available in Phase 2.
The Pass is eligible for business owners, founders, directors, shareholders, and individuals holding top management or managerial positions.
It is only for investors in Peninsular Malaysia and the Federal Territory of Labuan, excluding Sabah and Sarawak.
If approved, the Investor Pass is issued for six months for multiple entries, with an option to extend the Pass for an additional six months, subject to justification and requirements presented to the Immigration Authority for its consideration.
Visa Exemption for Kosovo Nationals
The Malaysian government announced the visa exemption for Kosovars for entry into Malaysia for tourist purposes as social visitors for 30 days after the official visit of Kosovo’s President, Dr. Vjosa Sadriu to Malaysia and the opening of the Embassy of Kosovo in Malaysia, which aims to boost bilateral ties.
The Immigration Department of Malaysia had updated its website to remove Kosovo from the list of countries that require a visa to enter Malaysia.3
KPMG INSIGHTS
The Investor Pass is beneficial especially for investors in Malaysia who are considering or are in the midst of setting up a business in Malaysia as the process for obtaining the necessary registration and licenses could be long.
Additionally, please note that the holder of the Investor Pass is not allowed to engage in employment activities in Malaysia. Having said, after the business has been established, and the Pass holder intends to work at/for the company, an Employment Pass should be applied for.
Although not being employed in Malaysia while under the Investor Pass, the tax obligations should not be overlooked as Malaysian tax is territorial in scope, imposed on income based on where the employment is excercised, irrespective of where the contract is made or remuneration is paid.
The Malaysian government has eased the entry process for Kosovars to enter Malaysia which is expected to help boost the economy by stimulating two-way trade and business activities and expanding people-to-people exchanges across multi-faceted areas such as culture, education, and tourism.
An announcement was also made by the Minister of Malaysian Home Affairs on the extension of the entry visa exemption to Chinese citizens for five years under the Visa Liberalisation Plan, which includes longer stays in Malaysia of up to 90 days for each entry as social visitors within a 180-day period. A press report4 provides an account of the governments of Malaysia and the People’s Republic of China finalising the agreement. (An official media release is yet to be made by the Immigration Department of Malaysia or the Ministry of Foreign Affairs. Hence, it is advisable for Chinese citizens to check with the Malaysian Embassy or pay careful attention to the number of days allowed in Malaysia stated on the entry stamp/pass issued upon arrival in Malaysia, which will help to ensure no over-stay.)
FOOTNOTES:
1 Expatriate Services Division, "NEW FACILITY IMPLEMENTATION EFFECTIVE 1 APRIL 2025: INVESTOR PASS" (15 March 2025).
2 MIDA, "A GUIDE FOR INVESTORS ON PAS PELABUR (INVESTOR PASS): FREQUENTLY ASKED QUESTIONS."
3 Immigration Department of Malaysia (Ministry of Home Affairs), “Visa Requirement by Country – Malaysian Immigration Department.”
4 "Malaysian travellers can soon stay in China visa-free for up to 90 days under new five-year deal," published in MalayMail (online) (7 May 2025). Please note that by clicking on this link, you are leaving the KPMG website for an external (non-governmental, non-KPMG) site, that KPMG is not affiliated with nor does KPMG endorse its content. The use of the external site and its content may be subject to the terms of use and/or privacy policies of its owner or operator.
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Disclaimer
* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.
The information contained in this newsletter was submitted by the KPMG International member firm in Malaysia.
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