IMPACT – MEDIUM

What is the change? The Malaysia Digital Economy Corp. will soon begin accepting 2018 Foreign Knowledge Worker (FKW) projections.

What does the change mean? Companies that are registered with the MDEC should prepare their requests for foreign workers for 2018. Companies will not be able to submit new or renewal applications in 2018 until the new FKW projections are submitted and approved.

  • Implementation time frame: The eXpats system within MDEC will accept projections starting Friday.
  • Visas/permits affected: Employment passes, new and renewal cases.
  • Who is affected: MDEC-registered companies with MSC and ICT status that are planning to hire foreign knowledge workers in 2018.
  • Impact on business: Delays in submitting the FKW projections will directly impact a company’s ability to apply for employment passes in 2018.

Background: FKW projections must be approved before companies may apply for employment passes. MSC- and ICT-status companies may begin submitting FKW projections to the eXpats system beginning Dec. 8.

BAL Analysis: Companies should submit their FKW projections for 2018 as early as possible if they intend to apply for employment passes by the beginning of 2018. The standard processing timeline is five to 10 working days from the date of submission. Companies expecting to hire large numbers of foreign workers should also anticipate the possibility of longer timelines if they are asked to submit additional documentation to support their requests for foreign workers.

This alert has been provided by the BAL Global Practice group and our network provider located in Malaysia. For additional information, please contact your BAL attorney.

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