KUALA LUMPUR: Foreign professionals living and working in Malaysia under the DE Rantau nomad pass have voiced frustration over long delays, unclear renewal procedures and short visa durations – issues that have left some stranded and others counting heavy financial losses.
The DE Rantau nomad pass is issued by the Malaysia Digital Economy Corporation (Mdec). It is a digital nomad visa, allowing remote workers, freelancers and independent contractors from other countries to live and work remotely in Malaysia for up to 12 months, with the possibility of renewal.
Ukrainian software engineer Nikita Shaposhnik, 30, who works for a Finnish financial technology company, said his initial application was approved in two months, but the renewal process has been far more arduous.
“You’re only allowed to apply three months before your visa expires. The renewal button on the portal was disabled at first and when I paid, the system didn’t register it. I lost a month just because of that,” he said.
The application fee for the pass is RM1,000 for the main applicant and RM500 for each dependent.
With his renewal still pending, he has had to visit the Cyberjaya office monthly to obtain a special 30-day stamp.
“If you leave Malaysia during this period, you can only return on a tourist visa, which pauses your renewal. Some people have had to do this two or three times because of the backlog.”
Although renewals were promised within six to eight weeks, Shaposhnik said many applicants are now waiting for up to five months.
“I can’t even commit to extending my rental contract without knowing whether the visa will be approved.
“Other countries are more generous. Taiwan now gives five years straightaway. Here, even if the renewal goes through, you only get another year and then you have to leave,” he said.
For Sandra Iskandar, a digital nomad pass holder in Penang, delays came at steep financial and emotional cost.
“Renewals were painfully slow and many people were left stranded outside Malaysia waiting for their passes. In our case, the delays cost us around RM20,000 in extra flights, more than a month in hotels and animal boarding fees.”
She added that after re-entering from Thailand, the renewal was inexplicably changed to a new application, leaving her and her family on a tourist visa.
“After more than two months, we finally received an email from Mdec stating: ‘You need to leave immediately. If immigration detects you in Malaysia, they may not issue the pass.’
“We had just two days to pack up and leave after arranging care for our pets.”
The ordeal also cost her husband a US$4,000 (RM16,895) contract and forced them to ask their daughter’s school to accept tuition fees in instalments.
“I really think people should be told upfront to expect a six-month wait. Six to eight weeks is very misleading. Thailand processes its digital nomad visas in two to three weeks.”
Arabic machine learning engineer Mohammed Yasin, 25, said he recently moved to Cyberjaya after six years as a student, spending about RM2,500 a month. But he argued that taxation further erodes Malaysia’s appeal.
“Tax relief is needed. Otherwise the taxes undo the benefits of lower living costs.
“I might as well just get the Dubai digital nomad visa.”
Chairman of the National Tech Association of Malaysia (Pikom) Alex Liew said Malaysia must balance remote workers’ needs with their transient nature, warning the economy could lose out if they leave.
“Digital nomads by nature are short-term workers and will move on to other jobs or locations as required.
“Yes, some countries offer longer stays, but Malaysia has its own advantages such as strong infrastructure and widespread use of English.
“While we have not heard of significant delays in processing DE Rantau, we need to ensure remote professionals’ expectations are met,” he told theSun.
The nomad pass, launched on Oct 1, 2022, was projected by then-Mdec CEO Mahadhir Aziz to inject RM4.8 billion into Malaysia’s economy by 2025.
theSun sought updates from Mdec on the number of passes issued, renewal backlogs and processing times, but as of press time has yet to receive any feedback.