Do Indian citizens residing in Malaysia need entry permit to enter Sweden after Swedish work permit is approved?

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Malaysian citizens are visa exempt in the Schengen zone. You are, as you know, not a Malaysian citizen, and (unless you have a diplomatic passport) your so-called immigration consultant seems not to know his or her business. You certainly need a visa or a residence permit. No airline will let you board a plane bound for the Schengen area with only a "work permit approval letter."

The embassy of Sweden to Malaysia, in Kuala Lumpur, doesn't handle visas, not because there's nobody in Malaysia who might need a visa, but because any such people are supposed to apply through the embassy of Sweden to Thailand, in Bangkok. Presumably this is a cost saving measure.

Note that one link on that page points to a list of countries whose citizens require a visa. India is of course on that list. Maybe you should send it to your immigration consultant.

The links on the Swedish embassy sites are a bit confusing, but it looks like Sweden has stopped granting sticker-in-the-passport visas to people in your circumstances and is instead granting work permit cards directly to overseas applicants. So rather than a sticker in your passport, they'll mail you a work/residence permit as a separate card, which you can use in lieu of a visa:

If you are granted a permit
Permit card for you if you applied from abroad
If you are granted a permit, you receive a permit card as evidence that you have the right to be in Sweden. The card is a certification that you have permission to be in Sweden and contains your fingerprints and a photo of you, among other information.

If you come from a country where you need a visa to travel to Sweden, you need the permit card to travel to Sweden. You will therefore be photographed and submit your fingerprints in connection with your application. When the permit card is ready, the embassy or consulate-general will hand out or send it to you. Note that it can take up to four weeks after you have received your decision to manufacture the card and deliver it to the embassy or consulate-general. When you travel into Sweden, you must present the card together with a valid passport.

If you come from a country where you can travel to Sweden without a visa, you must present a copy of your permit decision when you travel. Once you have arrived in Sweden, you must book an appointment to submit fingerprints and be photographed at the Swedish Migration Agency. At the visit, you must be able to present your passport. When the residence permit card is ready, it will be sent to your address in Sweden.

Note that "come from" here does not refer to the country from which you are traveling but rather to your country of citizenship.

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