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IMPACT – MEDIUM
What is the change? The Malaysia Immigration Department (MID) has strictly enforced regulations on work pass holders working at second locations without permission.
What does the change mean? Employers must ensure foreign employees have permission to work at a second site and such permission must be visible and evidenced on the passport tied to the work pass.
Background: The MID has enforced the rule in recent weeks by conducting unannounced raids where work pass holders are employed.
Analysis & Comments: Employers must obtain permission for work pass holders to work at second sites before they begin working. Further, second site permission may only be obtained for branches or projects operated by the same company. Work passes are invalidated if the conditions of their issuance are violated. Penalties for employers violating work pass conditions are harsh and include fines of RM 10,000-50,000 and/or imprisonment of six months to five years, and/or corporal punishment. Penalties for employees found working in violation of the terms of their work permit include imprisonment up to six months and/or a fine of up to RM 1,000.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
IMPACT – HIGH
What is the change? Malaysia has stepped up travel restrictions in an effort to stop the spread of coronavirus.
What does the change mean? Authorities will deny entry to Peninsular Malaysia to anyone who has been in Hubei, Jiangsu or Zhejiang provinces in the past 14 days. Entry will also be denied to People’s Republic of China (PRC) passport holders who were born in or had their visa issued in any of the three provinces. Previously, the ban only covered Hubei Province. Authorities in East Malaysia (Sabah and Sarawak) will ban entry to all PRC passport holders, regardless of where they are traveling from, and to all travelers from mainland China, regardless of nationality.
Analysis & Comments: Employers should be aware the entry restrictions. The response to the coronavirus is evolving rapidly, and Deloitte will alert clients to additional changes or restrictions as information becomes available.
What is the change? The government has suspended granting visas to all PRC passport holders from Hubei Province in China in response to the spread of the coronavirus.
What does the change mean? All visas, including visa-waived entry, visas on arrival, e-visas and consular visas, are suspended for Chinese nationals from Hubei Province.
Background: Since the coronavirus was first detected in December, countries have begun issuing travel bans and warnings to prevent the further spread of the virus.
Analysis & Comments: Employers should be aware of the suspension of visas for PRC passport holders from Hubei Province when filing visa applications. The government has said that immigration privileges will be available to affected Chinese nationals once the situation returns to normal. Deloitte will continue to monitor the situation and will provide updates when available.
What is the change? The Malaysian Immigration Department (MID) has launched an e-Payment system that can be used with a credit or debit card.
What does the change mean? The MID will no longer accept cash for payment of immigration fees. Applicants instead will have to use the e-Payment system or pay with a bank draft.
Additional information: Up until now, MID accepted cash or bank drafts for payment of fees upon submission of the applicant’s passport at immigration offices. This changed with the launch of the e-Payment system. While cash will no longer be accepted, officials have confirmed that bank drafts will continue to be an accepted method of payment.
Analysis & Comments: The MID’s move to cashless transactions is in line with current technology trends designed to ensure payment integrity. With this system in this place, companies should be able to mitigate the risk in cash handling as payment transactions will be immediately captured in the e-Payment system, which will be able to generate payment reports at any time upon request.
What is the reminder? The Malaysia Digital Economy Corp. (MDEC) and the Expatriate Services Division (ESD) have begun accepting projections from companies on their 2020 needs for foreign knowledge workers.
Analysis & Comments: Companies should plan to submit their foreign-worker projections as early as possible to avoid the year-end holiday slowdown. Although there is no official deadline for filing, companies should aim to obtain approval by Dec. 31 to avoid any issues in submitting renewal applications, especially renewals for permits that expire in January, February or March.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? The Malaysia Digital Economy Corporation (MDEC) is now issuing approval letters with longer validity periods for ICT applicants.
What does the change mean? MDEC approval letters for ICT applicants will be issued with validity periods of six months instead of three months.
Analysis & Comments: The change is good news for ICT companies since they will have more time to endorse employment passes, and employees will have more time to start their assignments in Malaysia.
What is the change? The Malaysia Digital Economy Corporation (MDEC) has implemented new rules impacting dependent children born in Malaysia.
What does the change mean? Effective immediately, MDEC requires newly born children of foreign nationals born in Malaysia to hold a Special Pass (SP) while waiting for their Dependent Pass (DP) to be adjudicated. For children currently between one to six months old, the SP applications must be filed through the Immigration Unit of MDEC. In addition, it is now necessary to include proof of the SP documents when applying for stage 2 of the DP (endorsement stage). Alternatively, for children seven months old and older, the SP application is filed through the Enforcement Unit of the Immigration Department in Putrajaya.
Analysis & Comments: The change, announced by the MDEC, adds an additional step to visa and permit processing for foreign nationals with newly born children born in Malaysia and requires them to apply for an SP before applying for a DP.
Source: Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? The Malaysia Digital Economy Corporation (MDEC) has implemented new rules impacting Nigerian nationals.
What does the change mean? Effective Sept. 1, MDEC requires companies to submit certain documents for Nigerian nationals, duly stamped by the Malaysian High Commission in Nigeria. The documents include education certificates, marriage licenses, birth certification and documents that prove relationships. This requirement is only applicable for new Employment Pass (EP) and Dependent Pass (DP) applications.
Analysis & Comments: The change adds an additional step to visa and permit processing for Nigerian nationals associated with MDEC registered companies and requires them to make a trip to the nearest Malaysian High Commission prior to submitting an EP or DP application.
What is the change? The Immigration Department of Malaysia has suspended issuance of i-Kad identification cards until further notice.
Additional information: The i-Kad is a biometric ID card that is issued to foreign nationals holding a Category I or Category II employment pass. Foreign nationals can use i-Kads in Malaysia as an alternative ID to their passport. They can also use them to access e-gate facilities when entering Malaysia via Kuala Lumpur International Airport (KLIA I or KLIA II).
Analysis & Comments: The suspension is not expected to adversely impact the immigration status of Employment Pass holders as long as their Employment Passes are valid. Foreign nationals who have i-Kads can continue using them until they expire. Those who do not have i-Kads are encouraged to carry their passports as ID while in Malaysia. Foreign nationals who do not have valid i-Kads will not be able to access e-gate facilities when entering Malaysia.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services.
This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? The Malaysian Expatriate Services Division has postponed fee increases that were announced earlier this year and were initially set to take effect June 1.
Pending a further announcement, ESD companies will continue paying fees based on the MYXpats Centre’s previous fee structure:
Analysis & Comments: The Expatriate Services Division had been set to significantly increase fees for the services listed above. Authorities subsequently announced, however, that the previous fees will continue to be charged until further notice.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.