Malaysia introduced three measures aimed at foreign talent and multinational companies as part of Budget 2027, tabled by Prime Minister and Finance Minister Anwar Ibrahim in the Dewan Rakyat on 9 October 2026. The changes affect existing DE Rantau Nomad Pass holders, companies applying for or holding Global Services Hub (GSH) status, and employees of companies with the new Malaysian Asean Business Entity (MyABE) status.
Holders of the DE Rantau Nomad Pass who have reached the programme’s current two-year limit will be allowed to stay and work remotely in Malaysia for an additional two years, Anwar said, for up to four years in total. The Ministry of Digital confirmed the measure on 11 October but had not yet published the conditions, application process, or how current income thresholds would apply. First-time applicants are unaffected: the base pass remains an initial stay of up to 12 months with one 12-month renewal.
For companies, the GSH incentive — administered by the Malaysian Investment Development Authority (MIDA) — will give new entrants a 5% tax rate on income from GSH activities from 1 January 2027, while existing Principal Hub or GSH companies will get the same 5% rate on income above their baseline. The incentive period can be extended in five-year blocks to a maximum of 30 years, and GSH companies managing treasury and fund activities will be exempt from withholding tax on interest payments and stamp duty on intercompany loan agreements. Separately, the government introduced MyABE status for Malaysian companies expanding across Asean; for listed MyABE companies, the Securities Commission and TalentCorp will handle preliminary Employment Pass applications with a target processing time of five working days. Neither the GSH incentive nor MyABE status changes an individual transferee’s own tax rate or visa category — both operate at the company level.
PwC Malaysia called the extended GSH tenure the budget’s standout investment measure, noting it is three times the scheme’s previous maximum period. Iskandar Investment Bhd said the change should boost Johor’s appeal as a regional hub location.
References
Bernama – Budget 2027 Global Services Hub Report / Malay Mail – Budget 2027: Govt Rolls Out Six Initiatives to Attract Global Firms, Skilled Talent / New Straits Times – 2027 Budget: 5pc Tax Rate for New Global Services Hub Companies / Emerhub – Malaysia Offers Two Additional Years to DE Rantau Pass Holders Who Reach the Two-Year Limit
