Malaysia will soon offer a new visa for digital nomads in an effort to position the country as Southeast Asia's next big hub, boost the local economy, and further digitize the country, the Bangkok Post reports.
The initiative is supported by the Malaysia Digital Economy Corporation (MDEC), a government agency responsible for promoting the country's digital economy.
Legislation for the new Digital Nomad Visa, also known as DE Rantau Nomad Pass, allows remote workers to live in the country for 12 months, with the option to renew for an additional year. Applications open on October 1.
The visa is aimed at "establishing Malaysia as the preferred digital nomad hub in the Association of Southeast Asian Nations (ASEAN) while boosting digital adoption and promoting digital professional mobility and tourism across the country," writes the Bangkok Post, citing MDEC.
Malaysia's digital nomad visa requirements
With a processing fee of 1,000 ringgit ($220), the program is open to digital nomads with professions in the digital field, such as UX/UI designers, content creators, digital marketers, developers, and information technology professionals (IT) from around the world.
An applicant must earn at least $24,000 per year and have an active three-month employment contract with a foreign or Malaysian company. The minimum requirement can be met by several shorter contracts.
The application can be extended to include family members such as spouses and children, for 500 ringgit ($110) each. The pass can be extended for another year.
De Rantau will certify accommodation providers as digital nomad hubs with high-speed fiber-optic Internet connections and co-working spaces, which has the potential to positively impact the rental market across the country.
Tough competition
Indonesia, which has established itself as an international remote work magnet, is Malaysia's toughest competitor in attracting digital nomads.
Even after COVID-19 closed the border, Canggu on the south coast of the Indonesian island of Bali, was able to retain a large number of foreign remote workers. In fact, Bali is being promoted as the "digital nomad capital" of the world.
After more than a year of discussions, the Indonesian government recently announced that remote workers can work online tax-free for up to six months using the existing B211A visa scheme, reports ABC Australia. An initial government proposal for a five-year visa for digital nomads is still under discussion.
The change, which will allow remote workers to work more easily from Indonesia, has the potential to boost Bali's economy and create 4.4 million jobs by 2024, ABC Australia quotes Indonesian Tourism Minister Sandiaga Uno as saying.
"I am increasingly convinced that the number of foreign tourists who are interested in staying in Indonesia will increase, and will automatically have an impact on economic revival," he says.
Since January this year, more than 3,000 foreigners have used the B211A visa to work as digital nomads.
While Russia, Britain, and Germany are the main source countries, Indonesia plans to promote the new visa program to other countries such as Australia, Malaysia, and Singapore, according to the tourism minister.
There are also plans for a longer-term Second Home Visa that would allow older expats to live in Indonesia.
