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IMPACT – MEDIUM
What is the change? The Malaysia Digital Economy Corporation has announced its holiday schedule for the upcoming Hari Raya Aidilfitri (Eid al-Fitr).
What does the change mean? Applications under MDEC’s purview that are received after May 22 will not be decided until after the holiday break. The cutoff for endorsement of passes is May 28. Normal operations will resume June 10.
Additional information: Officials have announced the following cutoff dates for submission of Stage 1 Approval and Stage 2 Endorsement for MSC Malaysia Status companies and ICT Sector companies.
Analysis & Comments: In order to avoid processing delays, employers are encouraged to submit applications according to the cutoff dates provided by the authorities.
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.
What is the change? The Malaysian Expatriate Services Division (ESD) has announced new application features and fees for expatriate employment permits and professional visit passes. The changes will go into effect June 1.
Key points:
*However, immigration charges will apply. The method of payment for the immigration charges has yet to be announced by ESD. Companies are informed to wait for the announcement.
Additional information: Effective June 1, the MYXpats Centre will refund 60% of the application fee for rejected applications, excluding the immigration service fee, which will not be refunded.
Analysis & Comments: Companies should factor the fee increases into their budgets and, if possible, consider filing affected applications before the rate hikes take effect. More information on the changes can be found here.
What is the change? Malaysia’s Expatriate Services Division has set a new age limit requirement for Long Term Social Visit Pass applicants.
What does the change mean? Only those between the ages of 18 and 25 may apply for the passes. Foreign nationals who meet the age requirement must submit a letter from the Commissioner for Oaths and Embassy verifying their marital and employment status when applying for new and renewed Long Term Social Visit Passes.
Analysis & Comments: Foreign nationals applying for a new or renewed Long Term Social Visit Pass are reminded that according to the new requirements, individuals over 25 years of age are no longer allowed to apply for the pass, with the exception of dependents with disabilities.
Important announcement: Employers in Malaysia must register their foreign workers, including expatriates who hold valid documents, with Malaysia’s Social Security Organization (SOCSO) for Employment Injury Scheme (EIS) benefits.
What is the change? The changes went into effect for employers starting with their Jan. 1 payrolls. Their contributions to SOCSO for foreign workers are due on the 15th of every month, starting in February. These employer contributions are mandatory until foreign workers cease their employment in Malaysia.
What do these benefits include? The EIS benefits offer protection for employees against accident or occupational illness arising out of, or in the course of, employment. This includes medical, temporary/permanent disablement, rehabilitation, and dependent’s benefits; constant attendance allowance; and 6,500 ringgit for repatriation costs.
What is not included? Benefits under the Invalidity Scheme and protection for employees who suffer invalidity or death due to any cause unrelated to employment will not be extended to foreign workers.
Background: Previously, Malaysia only provided Malaysian citizens or permanent residents with EIS benefits through SOCSO.
Analysis & Comments: The Malaysian government’s decision to require EIS protection for all foreign workers, including expatriates, is in line with the International Labor Organization’s Equality of Treatment (Accident Compensation) Convention, and the Conference Committee on the Application of Standards. With these changes, all foreign workers in Malaysia are now afforded the same EIS benefits as local employees.
IMPACT – HIGH
Important announcement: Malaysia’s Expatriate Services Division and MYXpats Centre are conducting a mandatory customer-service survey of all users who maintain an account on the ESD portal. The ESD portal accounts will be blocked until the survey is completed by the company’s appointed endorser and login ID user.
Background: The MYXpats Centre has sent emails to ESD portal account holders—both the company’s appointed endorser and login ID user—informing them of the survey and providing a link to it. The survey, which is mandatory, is intended to obtain feedback from users about their experience in using ESD and MYXpats Centre services. All users are blocked from accessing their accounts until they complete the survey.
Analysis & Comments: All company endorsers and users of the ESD portal should complete the survey as soon as possible. Accounts will only be unlocked when both the endorser and the login ID user have completed the survey. The MYXpats Centre has said that the survey responses are confidential and will only be used for purposes of obtaining client feedback to improve services.
Medium Priority
What is the immigration news? Beginning Dec. 3, Malaysian employers may begin filing their Foreign Knowledge Worker, or FKW, projections for the first quarter of 2019.
BAL Analysis: The eXpats Service Center is asking that only companies who need foreign workers in the first quarter next year (new or renewal) file projections in order to ease the number of requests and shorten processing times. Companies needing foreign workers after the first quarter may file their projections throughout 2019 as the need arises. Companies are also reminded to make sure when they file their projections that they select the correct year of their projection, as unused requests for 2018 will be forfeited on Dec. 31.
This alert has been provided by the BAL Global Practice group and our network provider Permit Pro Consultancy in Malaysia. For additional information, please contact your BAL attorney.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? The MYXpats Centre has announced that it will be closed for a half day Thursday, June 14 and for the full day Friday, June 15 for the for the Hari Raya Aidilfitri (Eid al-Fitr) holiday.
What does the change mean? Employers and employees should submit their payments and passports no later than the cutoff dates listed below if they require MYXpats services before the holiday.
Key Dates: The cutoff dates for submission of payments and passport endorsements will be as follows:
Employers and foreign nationals will be able to access the MYXpats Centre’s online system during the holiday closures; however, depending on when online submissions are made, they may not be processed until the office reopens June 18.
BAL Analysis: Employers and employees should plan to submit any time-sensitive applications ahead of the holiday closure. Employers should also note that the eXpats Service Centre announced separate filing cutoff dates for its services earlier this month.
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.
What is the change? Government offices will be closed Thursday and Friday following Wednesday’s general election. Offices will reopen Monday.
What does the change mean? Employers who need government services, including services from the MYXpats Centre or eXpats Service Centre, may need to adjust timelines and should expect delays when offices reopen.
Background: Offices were closed Wednesday when voters went to the polls for Malaysia’s 14th general election. Offices were initially expected to reopen Thursday, but government officials subsequently announced that they would remain closed for the remainder of the week.
BAL Analysis: Employers who need services should expect delays and plan accordingly.
What is the change? The MYXpats Centre and eXpats Service Centre will be closed Wednesday, when Malaysia will hold a general election.
What does the change mean? Employers who need services from the MYXpats Centre or eXpats Service Centre should expect delays when offices reopen.
Background: Offices will be closed Wednesday when voters go to the polls for Malaysia’s 14th general election. Immigration offices offered limited services Tuesday. Full services will resume Thursday.
BAL Analysis: Employers who need services should expect delays this week because of the election.
What is the change? Authorities in Malaysia will restrict permit and visa filing during the Christmas and New Year’s holiday period.
What does the change mean? Companies should take note of the limited services and plan accordingly.
Key dates: In West Malaysia, the Expatriate Service Division’s online system will not be available from 6 p.m. on Dec. 26 through 8 a.m. on Jan. 2. During this period, authorities will not accept online applications for employment passes and professional visit passes or other immigration services handled by the system.
In East Malaysia, passport collection will not be available between Dec. 21 and Jan. 1 in Sarawak and Labuan and between Dec. 28 and Jan. 1 in Sabah. Application submissions will not be accepted from Dec. 28 to Jan. 1 in Sarawak and Sabah and from Dec. 26 to Jan. 1 in Labuan.
BAL Analysis: Businesses may need to adjust their timelines because of the holiday closures. Processing delays should be expected both during the holiday period and in the days after offices reopen. Foreign consulates will also likely operate on a limited basis during the holidays. Those in need of consular services are encouraged to contact the consulate in question about holiday schedules and services.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.