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IMPACT – HIGH
What is the change? Effective immediately, Malaysia has imposed mandatory e-filing for Professional Visit Pass (PVP) applications.
What does the change mean? The Immigration Department has stopped accepting manual filings. Beginning Oct. 1, employers must submit PVP applications electronically through the Expatriate Services Division’s (ESD) online portal, but the Immigration Department has not yet provided guidance on how to file electronically.
Background: This week, the Immigration Department announced that PVPs would be processed only through the ESD beginning Oct. 1 and that it would no longer accept in-person filings. However, on Sept. 25, it announced that the change was taking effect immediately so that it could clear its docket of manually filed applications before Oct. 1.
PVPs allow foreign nationals to work in Malaysia on assignments of up to 12 months while remaining on the overseas employer’s payroll. The PVP must be sponsored by a registered Malaysian company.
BAL Analysis: The sudden and unexpected e-filing requirement creates short-term confusion for employers applying for PVPs. This is because companies awaiting approval of their ESD registration cannot file electronically until their registration is approved, nor can they file manually now that e-filing has become mandatory. In urgent cases, companies that are awaiting ESD registration and need to process PVPs may seek an appointment with the director of the Immigration Department to request special approval of PVPs.
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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IMPACT – LOW
What is the change? Malaysia’s immigration department has suspended issuance of i-Pass identification cards until further notice.
What does the change mean? The i-Pass is merely an additional form of identification that can be used instead of a passport in peninsular Malaysia. The overall work permit process will not be affected.
Background: The Malaysian government introduced i-Pass identification cards in 2011 as a travel document that can be used in place of a passport in peninsular Malaysia. Passports are still required for travel to Sabah and Sarawak. Little information was available on why the government suspended issuance of i-Pass cards, though it appears the suspension is related to an internal matter in the Malaysian immigration department.
BAL Analysis: The suspension does not affect the work permit application process generally because the i-Pass is only an additional form of identification meant to make some business travel easier. Travelers who previously would have been eligible for i-Pass should make sure they carry their passports when working or traveling in Malaysia.
IMPACT – MEDIUM
What is the change? The Malaysia e-Xpats Centre has announced its holiday schedule for the end of July for Aidilfitri (Eid al-Fitr).
What does the change mean? Applicants should observe the submission deadlines to avoid delays in processing.
Background: In celebration of the Aidilfitri (Eid al-Fitr) holiday at the end of Hari Raya (Ramadan), the center will be closed from midday July 25 through July 30. It will reopen July 31.
The following filing deadlines apply for obtaining decisions before the holiday break:
By July 9
By July 25
July 31 or later
By July 18
*Note that between July 21 and July 25, the Center will not collect original passports for security reasons. Applications submitted without an original passport must contain copies of the following pages of an applicant’s passport:
BAL Analysis: Employers whose schedules require decisions on various applications before July 25 should move quickly to meet these holiday deadlines.
What is the change? Malaysia will begin to strictly enforce in-person filing of applications for Professional Visit Passes.
What does the change mean? A representative of the sponsoring employer must file in person at Malaysian Immigration Department (MID) headquarters in Putrajaya.
Background: The MID is enforcing in-person filings for Professional Visit Passes to root out fraudulent applications. Beginning June 15, a corporate representative of the sponsoring employer must submit applications in person and verify their identity by presenting a recent Employee Provident Fund statement showing contributions within the three months prior to the date of the Professional Visit Pass application. This is the only identification that MID will accept.
BAL Analysis: The new rule signals greater scrutiny of Professional Visit Pass applications and will create an extra step in the process for businesses.
What is the change? Malaysia is enforcing stricter travel rules for foreign workers who have filed to cancel their employment passes.
What does the change mean? Foreign workers risk being denied reentry if they leave Malaysia while their employment pass cancelations are pending.
Background: Effective immediately, the Malaysian Immigration Department will no longer recognize the reentry privileges of an employment pass once a foreign worker has filed to cancel it. In the past, foreigners could travel and reenter Malaysia up until the requested effective cancelation date of their EP. Now, the employment pass is cancelled immediately upon leaving Malaysia if a cancellation request has been submitted to the authorities. This means the affected foreign nationals will lose their ability to work upon their return to Malaysia. Further, visa nationals could be denied reentry and forced to apply abroad for an entry visa, which would allow them to reenter Malaysia but does not authorize work. Therefore, a foreign worker who has filed to cancel an employment pass should stay in Malaysia until the requested end date.
BAL Analysis: The change in rules comes without notice, and foreign employees at the end of their assignments are strongly advised to avoid leaving Malaysia after their cancellation requests are submitted, even if they are changing employers in Malaysia.
What is the change? With little notice, the Putrajaya headquarters of the Immigration Department of Malaysia has mandated that all companies use the new online portal to apply for employment passes.
What does the change mean? Manual applications are no longer accepted and companies must enroll in the Expatriate Services Department’s online portal before they can submit employment pass applications in Putrajaya.
Background: The Immigration Department of Malaysia launched the online portal last month, starting with energy sector companies and later phasing in six more industries. The Putrajaya headquarters verbally confirmed that it is enforcing mandatory online portal registration for all companies ahead of a scheduled rollout. As of April 21, companies processing applications through Putrajaya will no longer be able to submit applications over the counter.
BAL Analysis: To avoid delays, employers should work with their BAL attorney to gather the information necessary to register on the portal.
What is the change? The Malaysian Immigration Department is rolling out registration for access to services through the Expatriate Services Division (ESD) online portal to six more industries: agriculture, finance, medicine, mining, sports and tourism.
What does the change mean? Companies in these sectors must register in the new system to be able to file online applications for employment passes.
Background: The Malaysian Immigration Department is beginning Phase Two of the launch of its new online portal. Phase One launched the portal for oil, gas and energy sector companies earlier this month. Phase Two will extend use of the portal to employers in the agriculture, financial, medical, mining, sports and tourism sectors. There is no information yet on which industries may be included in Phase Three.
As BAL reported during the Phase 1 launch, the rollout of the portal requires each employer to undergo a process of registration. Phase Two companies may begin the registration process at any time from March 12 onward. Registered employers can use the portal to apply for and renew employment passes, transfer employment passes to new passports, and obtain other employment pass-related services, as well as book appointments with ESD representatives.
The Malaysian Immigration Department will eventually require all companies to submit employment pass applications online through the ESD portal. The Immigration Department recently released a notice that employers in the Phase One and Phase Two industries are required to use the ESD portal to submit filings from April 1. However, given previous delays in the implementation of the ESD program, that date may be subject to change.
BAL Analysis: Once fully implemented, the ESD system may significantly speed up processing times for employment pass-related services. The initial registration process, which may include site inspections, increases the Immigration Department’s oversight of employers. Contact your BAL attorney for updates and assistance in preparing for employer registration.
What is the change? The Immigration Department has launched an online portal to register and monitor companies, starting with the energy sector.
What does the change mean? Oil, gas and energy companies must register through the portal, which is called the Expatriate Services Division (ESD). Companies will then be able to file Employment Pass applications online.
Background: The Expatriate Services Division will require registration before companies can apply for any Employment Pass applications. At this time, the ESD is only being rolled out to oil, gas and energy sector companies.
Companies will have to identify representatives who will be responsible for logging into the portal. Only authorized representatives will be allowed to apply on the company’s behalf. Companies will have to fill in all information requested, and the Immigration Department may ask the company to give a presentation about the company. The Immigration Department may also conduct an on-site inspection of company premises. Only when the Immigration Department is satisfied will it issue a password for ESD access. At that point, companies can submit Employment Pass applications to the Immigration Department. The portal will also provide access to services regarding other issues, such as transferring an Employment Pass endorsement to a new passport. It will also allow companies to book appointments online with ESD officers.
BAL Analysis: The online registration may reduce some wait times by allowing online booking of appointments. However, overall impact on processing times will not be fully known until the portal is in use. The initial registration process, including information requests and possible on-site investigations, may signal greater oversight by the Immigration Department.
Effective Oct. 1, clients must comply with two new exit requirements in order to avoid immigration penalties. The first new requirement is that holders of professional visit passes (PVPs) and student passes must obtain exit memos before departing Malaysia. The exit memo must be presented along with the passport during departure from the airport.
Second, pass holders will now be required to cancel their passes if the holder will be departing before the pass expires. Previously, if an expatriate employee departed the country before his or her PVP or student pass was due to expire, the permit could be allowed to expire automatically. According to the new requirement, if the holder departs on the same day the pass expires, no cancellation is necessary. However, he or she will still need to obtain an exit memo before departure.
It is the employer’s responsibility to see that both new requirements are fulfilled. A request letter from the employer must be provided in order to obtain both pass cancellation and exit memos. The government has not yet provided details about how noncompliant employers and universities will be penalized.
This alert has been provided by the BAL Global Practice group and our network provider located in Malaysia. For additional information, please contact GlobalVisaGroup@bal.com.
Clients are advised to gather information from expatriate employees about any foreign nationals the expatriates employ as domestic staff. Recently, BAL has become aware of several cases wherein companies were blacklisted by government authorities when an employee’s maid left without notice. As described in detail below, this can have serious consequences.
Blacklisting For blacklisted companies:
Understanding the Situation When a foreign national is hired as a maid by an expatriate employee, the maid’s immigration status is tied in with the expatriate’s status. The maid’s immigration application is filed with the expatriate’s Employment Pass reference number. A maid who leaves without giving notice has violated the conditions of his or her own immigration status. If the expatriate’s maid leaves without giving notice, it is up to the company who employs the expatriate to make a full report to the police and immigration authorities. The report will be filed with the expatriate’s immigration records.
If no report is filed, blacklisting can happen automatically within the electronic system used by the immigration authorities. BAL and its network partner are discussing this situation with government representatives, but no changes are yet in the works.
When a company is blacklisted, immigration authorities will provide the name and passport number of the maid, but will not provide information about which expatriate employed the individual. Therefore, it can be difficult to identify which expatriate is involved. This makes it harder for the company to clear blacklisting.
How to be Prepared Under the current system, it is impossible for an employer to prevent this situation. However, BAL advises companies to take the steps below to be prepared for action if blacklisting occurs.
This alert has been provided by the BAL Global Practice group in Malaysia. For additional information, please contact GlobalVisaGroup@bal.com.