Expatriates' spouses allowed to work in Malaysia from Jan 2027

Prime Minster Anwar Ibrahim said Malaysia wants to attract global talent without requiring expatriates’ spouses to sacrifice their careers. (Magnific pic) KUALA LUMPUR: Spouses of expatriates holding a Category I employment pass will be allowed to work in Malaysia from Jan 1, 2027, subject to stipulated conditions.

The measure, announced as part of the 2027 budget, applies to spouses holding a dependant pass.

"This move is aimed at ensuring Malaysia remains an attractive destination for top talent without requiring their spouses to sacrifice their careers," said Prime Minster Anwar Ibrahim when tabling the 2027 budget today.

Existing holders of professional visit passes under the nomad category who have reached the two-year limit will be granted an additional two years to continue living and working remotely in Malaysia, subject to the stipulated conditions.

Anwar also said the government will enhance tax incentives for the Global Services Hub (GSH) scheme from Jan 1 next year to attract more global companies and skilled talent to Malaysia.

Under the revised incentives, new companies will enjoy a special tax rate of 5% on income from GSH activities.

Existing companies will also qualify for a 5% tax rate on income exceeding a prescribed baseline.

The incentive period will be extended in five-year increments, up to a maximum of 30 years.

GSH companies involved in treasury and fund management will also be exempt from withholding tax on interest payments and stamp duty on intercompany loan agreements.

These incentives will also apply to the relevant activities under the Johor-Singapore Special Economic Zone (JS-SEZ) package.