There are business owners mistreating people with a NEW kind of scam.
1. They ask people to arrive in Malaysia on a tourist visa.
2. They never apply for a legal work permit
3. They deduct "income tax" at 28% (non-resident rate) but it is never sent to tax office as a person cannot register without a work permit
4. The employee finally gets tired of "waiting for the work permit" and wants to leave or change jobs, but find they are living and working (for a low salary) illegally in Malaysia.
5. Only way to leave is to be deported by turning themselves in to immigration.
If they do get another job offer, they still have to leave the country while permission to be hired is being processed by immigration.
6. They receive a 5 year blacklisting (this can affect getting other visas in different countries).
The rule is a person has to be outside Malaysia until approval (Stage I) to hire them has been obtained from immigration and a single entry visa has been provided by an overseas Malaysian Consulate (VDR). Immigration has to approve each company before they can hire foreign staff.