The Prime Minister of Malaysia YAB Dato’ Sri Mohd Najib bin Tun Abdul Razak today announced revisions to the Returning Expert Programme (REP) to encourage more Malaysian professionals working overseas to come home and help drive the nation’s economic transformation.

“Equally importantly, to promote the return of Malaysian professionals working abroad, TalentCorp will now take the lead on our Returning Experts Programme, the programme parameters and qualifying criteria of which have been revised to better meet the needs of the Economic Transformation Programme.(ETP),” said the Prime Minister in a speech at the Invest Malaysia 2011 conference today.

The REP was originally introduced in 2001 and over the 10 years, a total of approximately 750 Malaysians were approved and returned under the programme. Applicants are approved based on qualifications held and overseas work experience.

The REP has been revised to better meet the needs of the economic transformation and the main revisions involve:

• The qualifying criteria now places a greater emphasis on relevant work experience as opposed to qualifications. Diploma holders with at least 10 years of overseas work experience can now qualify for the REP if they have the relevant industry experience in a National Key Economic Area (NKEA). (Previously the minimum qualification required to be eligible was a degree in a relevant field)

• The incentive of up to two tax-free vehicles is now strictly limited to locally assembled vehicles. Previously, this incentive applied to imported vehicles as well.

• Returning Malaysian professionals who qualify under the REP will now be eligible for a transitional income tax incentive, which accords a flat income tax rate of 15% for five years (as opposed to prevailing progressive scale rates of income tax).

The announced revised incentive package takes immediate effect, in that REP applications submitted from today onwards will be eligible for the incentive on locally assembled cars and the new transitional income tax incentive. Other previous incentives of the REP still remain, such as the tax exemption for all personal effects brought into Malaysia, enabling the applicant?s spouse and children to receive Permanent Resident status within six months of application and allowing the children to study in International Schools.

The rationale for the transitional income tax incentive is to better target higher value talent and to assist with the adjustment to income on returning to Malaysia. The incentive only applies to employment income and for the first five consecutive years following return to Malaysia. The new incentive can be claimed commencing the year of assessment 2012. Further implementation guidelines and details will be issued in due course.

The announced enhancements to the REP come on the back of the recent launch of the Residence Pass on 1 April. The REP is targeted at attracting back highly-skilled Malaysians currently working abroad, while the Residence Pass aims at attracting and retaining top foreign talent. The Residence Pass is an enhancement of the employment pass, providing expatriates with a longer tenure of up to 10 years and greater flexibility in changing employment. The Residence Pass has been introduced in conjunction to efforts by the Ministry of Home Affairs to enhance terms of the employment pass, including allowing for a tenure of up to 5 years.

“Malaysian professionals from abroad and top foreign talent complement local Malaysian talent by providing a diversity of expertise and experience. In an increasingly knowledge-intensive economy, the diversity of our talent pool fuels the exchange of ideas, which raises the productivity of all talent, including Malaysian talent,” TalentCorp said in a statement issued today.

For more information on the Returning Expert Programme and the Residence Pass can visit http://www.talentcorp.com.my, email rep@talentcorp.com.my or telephone 03-7839 7000 to learn more.

The Malaysian Government today announced several policies and initiatives which are expected to address the shortage of experienced and skilled engineers for some of the country’s top economic sectors.

The announcements were made by the Minister of International Trade and Industry YB Dato’ Sri Mustapa Mohamed at a Memorandum of Understanding (MoU) signing ceremony jointly hosted by the Malaysian Investment Development Authority (MIDA) and Talent Corporation Malaysia Berhad (TalentCorp).

“To ensure that the country remains an attractive investment destination for both domestic and foreign investors, the Government has and will continue to invest in strengthening our human capital development framework to create a sustainable pool of highly-skilled talent. I am pleased that MIDA and TalentCorp have collaborated closely, and in extensive consultation with the industry, to develop these measures which will help prepare our talents of today for the careers of tomorrow,” said YB Dato’ Sri Mustapa.

YB Dato’ Sri Mustapa witnessed the signing of MoUs between TalentCorp, the Malaysia Industry- Government Group for High Technology (MIGHT), and the Selangor Human Resource Development Centre (SHRDC) which will go on to form the basis of several upskilling and apprenticeship engineering programmes.

Under the MOUs, several upskilling and apprenticeship programmes will be developed to enhance undergraduates’ employability for careers in the Electronic & Electrical, Oil & Gas, Telecommunications and Information Technology sectors. Participants will be provided technical skills relevant to the job needs in these sectors, taught soft skills to enhance their communication and undergo practical on-the-job training.

YB Dato’ Sri Mustapa also announced that engineering-related industries in Malaysia will now be able to leverage on four initiatives spearheaded by TalentCorp to tap into the larger supply of talent to meet their talent needs.

TalentCorp and the Ministry of Higher Education (MoHE) will collaborate on Structured Internship Programmes (SIP), whereby companies will be encouraged to provide a high quality practical learning experience through internships tostudents from locally-based public and private institutions of higher education. Pursuant to Budget 2012, Companies providing such programmes, with effect from January 2012, stand to enjoy double tax deduction incentives on cash allowances and other internship training-related expenses.

Additionally, engineering-related employers will now be able to access top Public Service Department (JPA) scholars under the Scholarship Talent Attraction and Retention (STAR) programme, which enables JPA scholars to serve their bonds in the leading companies in Malaysia. STAR will now be expanded to include JPA scholars from Malaysian universities, beginning with engineering graduates.

Similarly, priority companies in industries identified by MIDA will be accorded the facility to submit applications under the Returning Expert Programme (REP) to secure incentives for highly skilled Malaysian professionals, such as engineers, whom they have targeted to bring back from overseas. Allowing applications by employers is intended to support companies in their efforts to recruit Malaysians from abroad.

In areas of critical skills shortages, the Government will also facilitate applications by leading investors to employ top foreign graduates currently studying in local institutions of higher learning to work in the private sector. For more information on these initiatives, please visit www.talentcorp.com.my.

Following the 2012 Budget announcement, companies in Malaysia providing structured internship programmes will soon be able to assess their eligibility for a tax deduction incentive following the issuance of the Structured Internship Programme (SIP) Tax Incentive Guidelines by Talent Corporation Malaysia Berhad (TalentCorp).

The tax incentive, which take effect 1 January 2012, is aimed at generating industry awareness and increased participation in the SIP, a collaborative effort between TalentCorp and the Ministry of Higher Education (MoHE) which hopes to generate more employable graduates to fill the current talent shortage in corporate Malaysia by providing industry-relevant internships to Malaysian students in local institutions of higher learning (IPT).

Under the Guidelines, companies offering paid structured internship programmes endorsed by TalentCorp will be able to claim tax deductions on internship training-related expenses of up to an average total of RM5,000 per intern for each assessment year. Issued together with a set of Frequently Asked Questions (FAQs), the Guidelines set out the criteria that applicants will be expected to meet before being eligible to enjoy the tax incentive initiative.

Internship programmes under consideration would cover a spectrum of organisational disciplines, have a defined curriculum and mandatory hours of field-related experience, and place a strong emphasis on the development of technical, personal, and business competencies. Additionally, companies must clearly state the objectives and learning outcomes of the internship programme in their application.

By participating in the incentive scheme, approved companies seeking to recruit new interns are obligated to do so via Career4U, the internship and entry-level recruitment portal managed by MoHE in collaboration with the online recruitment website JobStreet.com. The companies will also be responsible for ensuring the participation of all interns in the TalentCorp Internship Survey, the results of which will be one of the factors used as a basis for the renewal of the companies’ participation eligibility for the following year.

Interested parties should note that a key criterion of the Guidelines will require all approved companies to recruit only Malaysian students pursuing their studies in local IPTs as interns. Also, tax deduction eligibility will only apply to interns hired after application approval is given by TalentCorp.

Prospective applicants for the double tax deduction incentive are advised to read and understand the SIP Tax Incentive Guidelines before submitting their online applications to TalentCorp beginning 1 January 2012. To access the SIP Tax Incentive Guidelines and online application form, please visit http://sip.talentcorp.com.my.

Members of the Media may contact the Communications Unit at tel no. 03-78397051 (Mariena Malek) / 03- 78397053 (Syaheeda Hasbullah) or fax no. 03-78397001 or e-mail: mariena@talentcorp.com.my / syaheeda.hasbullah@talentcorp.com.my

What is your motivation? How does one go into such a big area as ‘talent development’ for a country?
I think we first have to take a look at where Malaysia is and where Malaysia wants to go. Over the last 50 years, we managed to successfully transform from what was originally a poor country. Today Malaysia ranks up there as one of the leading upper-middle income nations. But there is no time for complacency as Malaysia is facing the challenges of globalization. Malaysia needs to transform into a developed nation and high income country to remain competitive. However, to do that is not easy and few countries in history have actually successfully become high income nations. There are many others who have become “stuck in the middle income trap”, and that’s something we want to avoid.

Where do you see TalentCorp’s role and what do you think will be your contribution?
I guess where I see ourselves is as one of those agencies that act as a catalyst for change and I think the Government has been really trying to mobilize the private sector into driving this change together.

The targets for the Economic Transformation Plan have been set very high. What do you find most challenging in your current role?
One of the biggest challenges is to achieve ‘alignment’ and get many people to work towards a common goal. If we want to articulate a talent proposition for Malaysian talent, whether it is to retain them here or attract talent from overseas we need to be able to articulate the professional opportunities available here.

There is a perception, among foreign companies who operate here, that there is a lack of qualified workforce. What is your view on this?
There is always ‘a glass half full or a glass half empty’ way of looking at it. On the one hand, there are many highly talented Malaysians, many of them in leading corporations and in key positions in both Malaysian and foreign companies. The question is: do we have enough of them? This is perhaps exacerbated by issues that some of our better talent is leaving. Are we able to best complement the local supply also with easing the entry of top foreign talent? I think it all has to come into the mix.

Attracting ‘talented foreigners’ to come and live and work in Malaysia is officially part of the plan. Does this mean a departure from the concept that foreign talent employment should be temporary in nature?
I’m a firm believer in a global workforce in Malaysia. The Prime Minister has always spoken about celebrating diversity. Perhaps this is the role for Talent Corp – to be part of that conversation to move public perceptions. Because I think sometimes there is the perception that foreign talent is a substitute for local talent. This is a misconception that needs to be addressed. It is a very easy and intuitive argument to be made by the man on the street. Intuitive, but false. Foreign talent – through its inherent diversity – actually helps promote better productivity for all, including our local talent. So we should explain that it’s not a zero-sum-game.

In the global competition for talent; where would you see Malaysia’s competitive advantages?
Where we see our strength is where we have defined our core sectors i.e. where Malaysia is naturally competitive and growing strongly. That is why the Economic Transformation Plan focuses on priority sectors such as electronics, palm oil, health care etc. So there is a very credible value proposition for global talent and Malaysian talent to work in this sector. Beyond the professional opportunities, I do believe that the liveability aspect is also one of our strengths. The centre of economic power is already shifting to Asia, and Malaysia is at the centre of Asia. We also have natural cultural ties to the 3 largest and fastest growing economies in the region: China, India and Indonesia.

What are Immigration department’s views on facilitation of top foreign talent?
Talent is expected to play a key role in supporting Malaysia achieve its objective of propelling the economy to a high-income status. We welcome foreign talent to work and live in Malaysia, which offers a host of opportunities for talented foreigners to develop and enhance their experience in key sectors of the economy. The Malaysian Government has rolled out various initiatives and programmes to engage top foreign talent in the long term. At the same time, the Immigration Department is working towards transforming the delivery service.For instance, we have liberalised the issuance of Employment Pass both in terms of tenure and features such as allowing dependent spouses to work in the country. We have also implemented the Residence Pass, which provides top expatriates currently in Malaysia a longer term option of working here. Further improvements are also being made such as the re-introduction of identification cards (i-Pass) in September 2011.

Will the i-Pass be issued for all expatriates?
Who would be eligible? All expatriates are eligible.The i-Pass will serve as an identification document in lieu of the passport within Peninsular Malaysia, within Sabah or within Sarawak. However, the passport will still be the official travel document for entry and exit out of Malaysia.

Could you please give more details on the liberalisation measures undertaken in the issuance of Employment Pass (EP) that you mentioned?
Previously, there was a tenure limit of 10 years for EP to foreign talent holding talentcorp news Malaysia Facilitates Top Foreign Talent executive positions. The EP was also issued on a 2-year renewable basis for less senior roles. There was also a requirement to advertise expatriate job positions to Malaysians which only allows certain job descriptions to be filled by foreigners.

Early this year, we liberalised and relaxed those work permit limitations for top foreign talent in the critical sectors. For example, the tenure limit on work permits and the requirement to pre-identified understudies have been removed together with the need to advertise.

We had also introduced a new category of EP targeted at critical talent. The EP (Category II) enables applicants with a monthly salary of less than RM5,000 and/ or employment contract of less than 2 years in the NKEA sectors to contribute. These initiatives are applicable to all sectors in which Employment Pass is issued.

What is the process for extension of working facilities to spouses of Expatriate Employment Pass holders?
The Immigration Department is aware of the fact that the many spouses of expatriates based in Malaysia are well qualified individuals whose talent has hitherto remained largely untapped. As I mentioned earlier, we have made it easier for such spouses to work in Malaysia. Since 2008, spouses of foreign talent on employment passes seeking to work here are not required to apply for a separate work permit. A simple stamp of “allowed to work” on their dependent pass grants them the freedom to gain employment. All that is required to avail of this facility is a letter of offer from prospective employer, a no objection letter from the employer of EP holder and approval from the regulatory bodies like the Malaysian Industries Development Authority (MIDA), Multimedia Development Corporation (MDeC) and the Securities Commission.

We have made the changes in policy decisions, including the other liberalisation measures mentioned earlier. However, the level of awareness is quite low and the challenge now is to ensure that employers and expatriate spouses know and understand the policy changes. The Immigration Department is working closely with TalentCorp to promote the awareness and encourage companies to facilitate the application process.

The Residence Pass (RP), launched on 1 April 2011, allows top talent a longer option to work and live in Malaysia. It has generated significant interest in the expatriate community. What is Immigration Department’s role and what are your views on this product?
The Residence Pass, which is in effect a 10-year multiple entry visa, gives a welcoming signal to top foreign talent. The pass provides talent the flexibility to work with any employer without having to apply another pass. The spouse and children (under 18 years old) of the holder will also be awarded the same benefits i.e. the spouse has the freedom and flexibility to work as well.

We are working closely with TalentCorp, the agency entrusted with the implementation of the Residence Pass to facilitate the entire application process. Application can be done online via TalentCorp’s website.

Would the Residence Pass remain valid if the expatriate was to be posted for a stint outside the country?
The Residence Pass has been introduced as a mechanism to retain foreign talent in the country. We do understand that many expatriates working for organisations with a global presence may at some point in time get posted out of Malaysia. That, in my opinion, should not be a problem. The RP provides such talent a foothold or an option of coming back to Malaysia. The Residence Pass would therefore continue to remain valid even in event of the expatriate getting posted out of the country. However, the spirit of RP is to have the expats to remain employed within Malaysia. We shall see this matter on case by case basis.

Talented expatriates who work in Malaysia are currently required to obtain an Employment Pass (EP). The RP is a new instrument, which has several significant differences from an Employment Pass:

• It gives the holder a ten year renewable visa to reside and work in Malaysia versus a maximum of 5 years for the Employment Pass
• It provides greater flexibility as the RP is personal to the holder and not tied to a specific employer
• It allows the spouse to work in Malaysia

For the first phase of RP implementation, it will be made available to top foreign talent who are currently already working in Malaysia. The Residence Pass will also be issued to the spouse and children aged 18 years and below of successful applicants. The parents of RP holders will be eligible to apply for a social visit pass renewable annually.

Applications for RP are subject to criteria, whereby potential RP holders would need to possess relevant qualifications and experience, especially in critical economic sectors as identified under the Economic Transformation Programme (ETP). Applicant must fulfil the following criteria in order to be eligible
to apply:

• Bachelors / Masters / PHD degree in any discipline from a recognized Institute of Higher Learning, Diploma or a Professional / Competency Certificate from a recognized Professional Institute.
• Minimum 5 years of total work experience.
• Minimum total of 3 years continuous working experience in Malaysia
• Valid Employment Pass at time of application
• Must have a local sponsor i.e Malaysia Citizen, 21 years old and above
• Minimum gross annual salary of RM144,000
• Must have an Income Tax File Number in Malaysia and have paid income tax for a minimum of 2 years

Applicants who meet eligibility criteria are required to apply online a www.talentcorp.com.my or directly at the RP application page www.expats.com.my/rp. Applicants will have to be approved by the RP Talent Panel before they are recommended to be given thepass. In particular, the applicant must qualify as an expert who is able to contribute to key Malaysian industries in a significant way.

Some of the features of the RP application and award process, which should appeal to the target audience include:

• All applicants that fulfil the required criteria will be awarded a Residence Pass – there are no quotas or limits at the moment.
• Applications can be made with TalentCorp being the single point of contact. TalentCorp will directly facilitate the award of pass including collection of documents, verification, collection of passports, payments and any other requirements to be fulfilled by the applicant.
• Applicants will be informed if they have been successful within 21 days of submitting a complete application. There is an up-front application fee of RM200 per applicant, and the balance payment (which includes processing fees and immigration charges) is only made once the application is approved.

Malaysia has benefitted from the presence of foreign talent, who bring with them global experience, best practises, and in many cases specialised skills which together help to contribute towards economic growth. Many expatriates find that after working in Malaysia they do not wish to leave, having fallen for the unique mix of work and quality of life that Malaysia has to offer. TalentCorp is hoping that suitably qualified expatriates, who are already living here, will apply for the Residence Pass, so they can continue to enjoy their life in the country and help contribute to the economic growth of Malaysia.

Venue: Central
 

Venue: Central