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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.
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.
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.
What is the change? Companies are reminded that beginning Aug. 1 they will be required to update information in their ESD accounts using the new update function in the ESD portal.
What does the change mean? Companies that fail to keep company information updated may face consequences, including the possibility of having their employment pass and professional visit pass applications put on hold.
Background: Malaysia’s Expatriate Services Division launched an SSM (Companies Commission of Malaysia) e-info update function in the ESD portal in April. Authorities said at the time that companies would be required to update their information beginning Aug. 1 and on an annual basis thereafter. The purpose of the annual updating requirement is to ensure that authorities are making decisions on employment pass applications based on the most recent company information.
BAL Analysis: Companies should take note of the change and prepare to update the information in their ESD account. Companies should also note that the MYXpats Centre may use the e-updates to track companies’ business profiles and that companies should expect additional requests for information or documentation to support their business presence in Malaysia.
What is the change? Malaysia’s e-visa program is now available for business travelers. The program covers nationals of 10 countries – Bangladesh, Bhutan, China, India, Montenegro, Myanmar, Nepal, Pakistan, Serbia and Sri Lanka.
What does the change mean? E-visas are valid for a single entry for 30 days. While they may be used for business purposes, travelers are advised that because the change is recent, there may be some uncertainty. Therefore, they should continue to apply for consular visas unless they are traveling on an urgent basis.
Background: Recently, Malaysia confirmed that e-visas may be used by business travelers. Permitted activities on a business e-visa, as with a consular business visa, are limited to:
BAL Analysis: E-visas are often subject to greater scrutiny at Malaysia’s entry ports, and because the business e-visa is a recent change, applicants are advised that the safest option is to apply for a consular visa if possible and apply for an e-visa only for urgent travel.
What is the change? The Malaysia Digital Economy Corporation has announced changes to employment pass salary and contract requirements.
What does the change mean? Effective Sept. 1, employment pass submissions to MDEC must adhere to the new criteria. The salary minimum for foreign nationals seeking Category 1 employment passes will be set at 10,000 ringgits (about US$2,340) per month. Category II pass holders will have to be paid between 5,000 and 9,999 ringgits per month. Category III pass holders will have a salary requirement of 3,000 to 4,999 ringgits per month. Contract requirements will also change so that Category I permit holders will be allowed to apply for passes valid for up to five years. Category II permit holders will have to have a contract valid for up to two years. MDEC is adopting the changes after the MYXpats Centre announced similar changes in April.
Additional information: Malaysia’s MYXpats Centre announced a similar Employment Pass re-classification in April, and this week MDEC said that it will follow suit. The changes will be made Sept. 1:
(Expatriate)
MDEC indicated that all other requirements for submitting employment pass applications will remain unchanged unless further notice is provided.
BAL Analysis: MDEC’s changes to the salary requirements for employment pass holders are fairly significant, especially in Category 1, where the minimum salary will double to 10,000 ringgits per month. Employers who are affected should take note of the pending changes and budget accordingly.
What is the change? The e-Xpats Service Centre has announced that it will close June 23-27 for the Hari Raya Aidil Fitri (Eid al-Fitr) holiday.
What does the change mean? The closures will affect filing deadlines. Companies should take note of the closure and plan accordingly.
Background: In celebration of Hari Raya Aidil Fitri, the Muslim holiday marking the end of Ramadan, the e-Xpats Service Centre will be closed June 23-27, and work will resume June 28. Accordingly, the center has assigned filing dates for Stage 1 and Stage 2 applications.
Stage 2 applications received May 26 and later will be processed without original passports for security reasons. Applications filed without the original passport must include copies of the applicant’s passport, including the identity page, latest entry stamp, any pages containing current passes and visas, three empty pages and, for Indian nationals, the last page of the passport. Applicants must submit their original passports if applying for reissuance of an employment pass due to a change of positions within the same company.
BAL Analysis: Employers and employees should plan to submit any time-sensitive applications ahead of the holiday closure.
Global Practice group and our network provider located in Malaysia. For additional information, please contact your BAL attorney.
What is the change? Malaysia’s Expatriate Services Division has launched an SSM (Companies Commission of Malaysia) e-info update function in the ESD portal for companies to update their e-info, and beginning Aug. 1 it will be mandatory for companies to update their e-info annually.
What does the change mean? The purpose of the annual updating requirement is to ensure that authorities are making their decisions on employment pass applications based on the most recent company information.
Background: Currently, the MYXpats Centre manages the system manually and the system will notify companies if their information requires updates.
BAL Analysis: Companies should note that the MYXpats Centre may use the e-updates to track companies’ business profiles and that companies should expect additional requests for information or documentation to support their business presence in Malaysia.
What is the change? Malaysian authorities have announced changes to employment pass salary and contract requirements.
What does the change mean? Effective Sept. 1, the salary requirement for foreign nationals seeking Category 1 employment passes will double to 10,000 ringgits (about US$2,250) per month. Category II pass holders will have to be paid between 5,000 and 9,999 ringgits per month. Category III pass holders will have a salary requirement of 3,000 to 4,999 ringgits per month. Contract requirements will also change so that Category I permit holders will be allowed to apply for passes valid for up to five years. Category II permit holder will have to have a contract valid for up to two years.
Background: Malaysia’s MYXpats Centre announced Saturday that the following changes would be made to the Work Pass Program beginning Sept. 1:
Companies that operate within a regulated sector must obtain an approval letter or support letter form the appropriate approving agencies or regulatory bodies. Final decision-making authority on employment pass applications rests with the Immigration Department of Malaysia.
BAL Analysis: The changes to the salary requirements for employment pass holders are fairly significant, especially in Category 1, where the salary will double to 10,000 ringgits per month. Employers should take note of the pending changes and budget accordingly.
What is the change? Authorities in the state of Sarawak have announced that they will no longer accept submissions by third parties, such as immigration agents working on behalf of companies, beginning April 15.
What does the change mean? Employers will be required to file applications with immigration authorities themselves and will not be able to use third parties. Employers will be allowed to send a representative from within their company to submit filings, but only if they are unable to do so themselves and provide a letter stating that the representative is acting on the company’s behalf.
Background: Authorities made the announcement last week and said the change is being made to hold employers more responsible for their filings. Immigration agents in Sarawak continue to seek information about the policy shift, but barring any reversal, third-party filings will not be accepted beginning April 15.
BAL Analysis: Companies should take note of the change and adjust their schedules accordingly. Immigration agents continue to engage with the officials for alternatives to a ban on third-party representation. BAL will update clients on any changes or developments from these discussions.
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.
What is the change? Following the murder of Kim Jong-nam, the half-brother of North Korea leader Kim Jong-un at Kuala Lumpur Airport, Malaysia has announced that it will cancel its visa waiver for North Korean travelers beginning today.
What does the change mean? North Koreans will be required to apply for and obtain a visa prior to travel to Malaysia.
Background: Malaysian police have reportedly identified several North Korean nationals involved in the killing, including an embassy official, and deported three other North Korean nationals on Friday. On Saturday, Malaysia expelled North Korea’s ambassador. Malaysia has also increased border checks in search of the suspects.
BAL Analysis: The incident has created a rift between two countries that have longstanding economic ties. The cancellation of the visa waiver will add to visa processing for North Korean nationals traveling to Malaysia. As visa waivers are reciprocal agreements, North Korea may cancel its visa waiver for Malaysian nationals in response.
What is the change? Malaysian authorities are strictly enforcing a rule requiring foreigners holding new passports to take steps to transfer their employment passes and other passes to their new passports.
What does the change mean? Foreign nationals who obtain a new passport should observe “transfer of endorsement” rules to avoid delays while entering or exiting the country.
Background: As BAL has reported, foreign nationals who hold employment or dependent passes must transfer their passes to their new passports as soon as the passport is issued. BAL has seen a recent uptick in the enforcement of this rule. Foreign nationals who are subject to entry visa requirements may be forced to apply for a visa if they leave Malaysia before they transfer their pass to their new passport. Expired passports must be canceled or annulled before authorities will transfer passes or permits to new passports.
BAL Analysis: Foreign nationals should be aware of the recent enforcement effort and be sure to transfer their employment passes and dependent passes to a new passport as soon as it is issued.