- Malaysia's Budget 2027 introduced new rules allowing spouses of top-tier Employment Pass holders to work in the country from January 1, 2027
- Digital nomads on a Professional Visit Pass will be eligible for an additional two-year extension beyond the current two-year limit
- The government also unveiled enhanced tax incentives for Global Services Hub companies, including a preferential 5% tax rate
Elijah Ntongai is an experienced editor at TUKO.co.ke, with more than four years in financial, business, labour and technology research and reporting. His work provides valuable insights into Kenyan, African, and global trends.
Malaysia has announced a package of immigration and investment measures under its Budget 2027 that will allow the spouses of senior expatriates to take up employment, extend the permitted stay for digital nomads, and offer expanded tax benefits to multinational companies operating in the country.
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Prime Minister and Finance Minister Anwar Ibrahim unveiled the measures in the Dewan Rakyat on October 9, 2026, as part of a budget titled "The Fifth MADANI Budget: Reaching for the Skies, While Anchored on Our Values."
Work Rights for Expat Spouses and Digital Nomads
Starting January 1, 2027, spouses of expatriates holding a Category I Employment Pass who are currently in Malaysia on a Dependant Pass will be permitted to work, subject to prescribed conditions.
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Anwar said the change would "help Malaysia remain a destination of choice for top talent without their spouses having to give up their careers."
Remote workers also stand to benefit. Professionals on a Professional Visit Pass under the Nomad category who reach the existing two-year limit may apply for an additional two-year extension, provided they continue to satisfy programme requirements, giving qualifying individuals a potential four-year stay in the country.
Tax Incentives for Global Services Hubs
The government announced enhanced incentives for Global Services Hub (GSH) companies, also effective from January 1, 2027.
Newly qualifying GSH companies will be taxed at a preferential rate of 5% on income from eligible activities, while existing participants will enjoy the same rate on income above a prescribed baseline.
The incentive period can be extended in five-year increments for up to 30 years in total. GSH companies managing treasury and funds will additionally be exempt from withholding tax on interest payments and from stamp duty on intercompany loan agreements.
To streamline business immigration, the Securities Commission will work with TalentCorp to process initial Employment Pass applications for listed Malaysian ASEAN business entity companies within a target of five working days.
The government also introduced a MyABE status to support the regional expansion of Malaysian companies across ASEAN.
Malaysia's Broader Economic Ambitions
The measures sit within a wider budget framework that allocates RM510 billion in total expenditure, including RM83 billion for development and RM25 billion in government-linked investment company deployments.
The government projects GDP growth of between 4.2% and 5.2% in 2027 and is targeting a reduction in the fiscal deficit to 3.3%.
Approved investments in the first half of 2026 reached RM218.5 billion, a 7% increase, which the government said puts Malaysia on course for a record high for the third consecutive year.
For Kenyan professionals weighing opportunities abroad, the changes offer concrete openings.
Dual-career couples will no longer need to sacrifice one partner's career to relocate, and remote workers seeking a longer-term base in Southeast Asia now have a clearer pathway to an extended stay in Malaysia.
Source: TUKO.co.ke