This article first appeared in Digital Edge, The Edge Malaysia Weekly on January 9, 2023 - January 15, 2023

Work that feels like a vacation used to be a pipe dream, but now it has become a lifestyle. Instead of having to be chained to a desk and an office in a nine-to-five job, many today have the option of checking emails while enjoying the sunset in Bali or taking a breather from skiing in Switzerland to attend Zoom meetings.

This is the way of the digital nomad. The term was popularised by authors Tsugio Makimoto and David Manners in their 1997 book of the same name. Makimoto and Manners argue that advancements in technology would allow people to return to a nomadic state and work from anywhere.

But it wasn’t until Covid-19 that this nomadic lifestyle took off in a big way. With the help of cloud infrastructure, hyperconnectivity and the ubiquity of efficient tools such as Google Workspace and Microsoft Office 360, nomadic existence has become mainstream.

Digital nomads are people who work online — they could be the owner of an e-commerce platform, a remote worker or a freelancer — while travelling from one country to another. Fragomen’s World Immigration Trends Report estimates that there will be one billion digital nomads by 2035 — that’s 250 times more than the initial four million projected prior to the Covid-19 pandemic.

Digital nomads play a role in reviving the local economy as they spend 36% of their earnings on accommodation, food and transport, according to the US-based Adventure Travel Trade Association.

Digital nomads spend months or up to a year in the country they are visiting, depending on their visa duration. To entice them and spur the economy, many countries have introduced special visa passes with attractive perks ranging from tax exemption to discounts on services such as co-working spaces and flights. Some of the more popular locations are Bali in Indonesia, Dubai in the UAE and Germany.

Last October, Malaysia jumped on the bandwagon by offering multiple-entry Professional Visit Passes, dubbed the “DE Rantau” pass. Managed by the Malaysia Digital Economy Corporation (MDEC), the pass is available to locals — who don’t require a visa — and foreign remote workers and freelancers who are specifically employed in digital jobs.

Here’s a step-by-step guide to becoming a certified digital nomad in Malaysia with the DE Rantau pass:

In order to apply for a DE Rantau pass, both foreign and local digital nomads have to work in the following professions that are recognised by MDEC:

• IT (all types including software development, UX, UI, cloud, cybersecurity, blockchain, artificial intelligence and machine learning);

• digital marketing;

• digital creative content;

• digital content development; and

• all digital domain-related work

There are many companies that are based globally and offer the flexibility of remote working. If freelancing is your thing, check out sites like Swifty or UpWork to start closing deals and packing for your next adventure!

Distinguishing themselves from one-way ticket backpackers, digital nomads are required to have a specific income threshold, similar to the requirements of getting a normal work permit.

Foreign digital nomads are required to have an income of more than US$24,000 (RM105,488) annually, while local digital nomads need to have an annual income of more than RM36,000.

Apart from that, digital nomads will need to show proof of their work. Freelancers can attach active contracts of more than three months from both local and foreign clients, while remote workers need to submit their employment letter.

However, employers of foreign and local digital nomads in Malaysia have to be either non-Malaysian or based overseas.

Here comes the tedious but most crucial part of all: gathering and scanning all documents to be uploaded for the application process.

All digital nomads applying for the DE Rantau pass are required to submit the following items:

• a copy of the passport (all pages including six empty ones) or identification card;

• a digital passport photo;

• proof of remote work; 

• proof of income from last three months and yearly income statement;

• current résumé;

• certified criminal background check;

• health or travel insurance policy;

• proof of relationship with dependants (if any); and

• for Israeli citizens, approval from the Minister of Home Affairs is required. 

Applicants will have to create an account on the MDEC website before proceeding to fill out the application form. Select the “DE Rantau Digital Nomad Visa” option and follow the on-screen instructions.

International students keen to obtain the DE Rantau pass upon completion of their studies may apply with a release letter from the university and a full transcript.

Employees who wish to switch their current employee pass to a DE Rantau pass will require a release letter from their employers.

Pro tip: Keep a copy of these documents on a cloud platform to ease renewal or new visa applications.

To apply for the DE Rantau pass, each digital nomad will have to pay RM1,060 per person and RM530 per dependant. Applicants are also required to pay an immigration pass fee of RM90 for three months or RM360 per annum.

If MDEC is the sponsoring organisation for an applicant’s DE Rantau pass, a security bond has to be paid at a rate depending on the applicant’s country of origin. The full amount will be refunded to the applicant once the pass expires.

It will take up to four working weeks to receive the application status via email. The pass issuance will be completed within seven working days.

Successful applicants for the DE Rantau pass can remain in Malaysia for up to 12 months. 

They can enjoy discounted rates at 506 DE Rantau Hubs — certified nomad-ready accomodations — in the Klang Valley, Penang and Langkawi, which are available from DE Rantau partners Tourplus and HostAStay.

Apart from that, pass holders are able to enjoy a variety of subsidised or discounted rates from DE Rantau partners such as the AirAsia SuperApp, Easybook.com, Tapawfood, Jetpack, Lokalocal, Settlements and The Ship Campus. 

MDEC has created the DE Rantau Platform, a lifestyle app that allows them to browse special offerings of DE Rantau Hubs and services around them. The app will be ready for download this month. 

Longer stays are welcome, but all DE Rantau pass holders will have to renew their pass two months before its expiry. 

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.