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GMS Flash Alert 2024-165

Malaysia – Improvements and Enhancements to Immigration Processes

GMS Flash Alert 2024-165 | August 7, 2024

The Immigration Department of Malaysia has recently made announcements on such matters as the introduction of additional online applications for expatriates in the Expatriate Services Division (‘ESD”) portal, the extension of applications for support letters via Xpats Gateway, and the introduction of an ESD Satellite Centre (“ESC”) at Kuala Lumpur International Airport Terminal 2, amongst others.

Why this matters

Applications processes and timelines will be impacted by these changes, in many cases, making things simpler and more convenient.

Also, with the introduction of the ESD Satellite Centre at Terminal 2 of the airport and the extension of the Digital Nomad Pass to individuals who are not in the technology field and who wish to come to Malaysia to live and work mean a more welcoming environment for expatriate employees and government infrastructure investments and developments that provide for easier access and entry to Malaysia.

Highlights

  1. Simplified application process for annual Foreign Knowledge Workers (“FKW”) quota projections with Malaysia Digital Economy Corporation Sdn Bhd (“MDEC”) for Companies with Malaysia Digital (“MD”) status or in the Information, Communication and Technology (”ICT”) industry.1
  2. Introduction of additional online applications for expatriates in Expatriate Services Division (“ESD”) platform effective 1 July 2024 (gradual deployment) and revision of service fees effective 1 September 2024.2  
  3. Extension of applications for support letters via Xpats Gateway.3
  4. Improvement initative on PLS@XPATS for emergency/critical task/work.4   
  5. Introduction of ESD Satellite Centre (“ESC”) at Kuala Lumpur International Airport Terminal 2.5   
  6. Extension of Digital Nomad Pass for non-tech professionals.6    
  7. Extension of the visa exemption for Chinese tourists up to 31 December 2026.7

More Details

1. The application process for annual FKW quota projections with the MDEC for Companies with Malaysia Digital (“MD”) status or in the information, communication, and technology (”ICT”) sector has been simplified.  The application usually takes approximately 1 to 1.5 months for processing by MDEC after receiving the document-heavy application.  Documents such as the application form, corporate documents, and the annual Self-Declaration Form need to be prepared.  With the simplication, the application will be approved upon submission of the application with required projections and a brief reason.  Upon approval of the projections, the company may proceed to submit the Employment Pass applications.

2. The introduction of additional online applications for expatriates in the ESD platform, effective 1 July 2024, were on hold, initially anticipated to be deployed fully to the public by 2 August 2024.  As of the present time, only the following applications have been deployed:

  • Amendment / cancellation of an approved application;  
  • Transfer of Pass endorsement to a new passport including take-up of the balance of the approved period of the Pass;
  • Shortening / cancellation of the Pass.

Other applications to be deployed next are:

  • Permission to study for children of expatriates;
  • Permission to work at second location / branch / site office.

The above applications which were previously submitted physically ‘over the counter’ for processing at an ESD office will be submitted online after full deployment.  Submission of the individual’s passport to the ESD’s office is expected to be no longer required.  An email notification of the acknowledgement slip will be provided instead after the applications are approved.  However, for the transfer of endorsement application, the printed Pass will be couriered to the company to be affixed on the original passport.   

Along with the improvements, the ESD is revising the processing fees charged effective 1 September 2024.

3. The Xpats Gateway platform (launched on 15 June 2023) had served as a platform for a total of 23 sectors for applications for support letters with the respective government agencies/regulatory bodies prior to applications for Employment Pass for expatriates by companies that are regulated.  

Companies under the following approving and regulatory agencies’ purview are now added on to submit the applications for support letters via the Xpats Gateway platform:

  • MDEC for companies with MD status or part of the tech sector;
  • Private education institutions under the Ministry of Higher Education;
  • Companies operating in Iskandar Malaysia.

4. The application for Permission to Work under the Social Visit Pass (i.e., PLS@XPATS), which was introduced on 3 October 2022, will see a reduction of processing time from three working days to one working day, upon submission of a complete application.  This Pass is only applicable for foreign nationals who need to work in Malaysia urgently for emergency or critical task reasons or work under select sectors / industries such as security & defence, manufacturing, construction, and aviation, to name a few. 

5. Further to the opening of the ESD Satellite Centre in Kuala Lumpur International Terminal 1 in 2023 to facilitate the endorsement of various long-term passes newly approved by the ESD or MDEC, a similar Satellite Centre is now opened at the Kuala Lumpur International Airport Terminal 2 offering the similar endorsement facility upon the individual’s arrival at Terminal 2.  

6. The DE Rantau Nomad Pass programme offered by MDEC for foreign nationals and local Malaysians was initially applicable for freelancers and remote workers working in the tech industry.  However, the applications are now opened to those who are not from the tech industry with a higher salary requirement policy in order to be eligible.

7. The Immigration Department of Malaysia website and the FAQ in the eVISA application portal updated the visa exemption duration for Chinese passport holders travelling to Malaysia thereby extending the exemption to 31 December 2026.  Under the FAQ, the exemption is only for tourism purposes. 

KPMG insights

The improvements and enhancements around digitalisation is expected to give companies a greater degree of flexibility with respect to making applications 24/7 at their fingertips and reducing limitations in terms of working hours, which should cement Malaysia’s reputation as a business-friendly country, while helping support economic growth. 

There may be a ‘flip side’ to all this, however.  Yes, applications previously-submitted physically could possibly be completed within a day.  Generally, with the switch to online applications, the processing time takes within three to five working days.  Having said this, some observers think there could be a surge of applications, and this could give rise to delays and may impact applications that urgently need, for example, a transfer of endorsement or shortening / cancellation of a pass for those individuals travelling at short notice.

Moreover, the MDEC and ESD may be more stringent when reviewing applications.  In anticipation, companies must make sure that all conditions and requirements are complied with such as maintaining updates to the company’s details updated in the platform, renewing relevant licenses, and obtaining prior approvals from the Department of Labour Pass, just to name a few.

Contacts

Yenping Long

Partner, Global Mobility Services

KPMG in Malaysia

Michelle Foo

Manager

KPMG in Malaysia

Nur Aliaatul Shahira Mohamad Naguib

Immigration Manager

KPMG in Malaysia

Additional Resources

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Footnotes

1  MDEC, "NEW PROCESS OF FOREIGN KNOWLEDGE WORKER (FKW) PROJECTION" at: https://mdec.my/expats/announcement/new-process-of--foreign-knowledge-worker-fkw-projection.

See MDEC, "UPDATE ON HEADCOUNT REQUIREMENT" (2 July 2024) at: https://mdec.my/expats/announcement/update-on-headcount-requirement.

2  See: Expatriate Services Division, "INTRODUCING NEW ESD ONLINE FEATURES IN FACILITATING EXPATRIATE PASS PROCESSING, EFFECTIVE 1 JULY 2024" (27 June 2024) at: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-222-sub-product-esd/.

Also see: "Frequently Asked Questions (FAQ) - Sub Products” at: https://esd.imi.gov.my/portal/pdf/FAQ_SUB_PRODUCT.pdf.

Also see: Expatriate Services Division, “SYSTEM DISRUPTION & TEMPORARY ROLLBACK OF ONLINE SUB-PRODUCT TRANSACTION” at https://esd.imi.gov.my/portal/latest-news/announcement/announcement-223-sub-product-rollback/.

Also see: Expatriate Services Division, "GRADUAL DEPLOYMENT OF ONLINE SUB-PRODUCT SERVICES VIA ESD ONLINE" (19 July 2024) at: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-227-gradual-deployment-amendment/.

Also see: Expatriate Services Division, "GRADUAL DEPLOYMENT OF ONLINE SUB-PRODUCT SERVICES VIA ESD ONLINE" (29 July 2024) at: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-229-gradual-deployment/.

Also see: Expatriate Services Division, “NEW APPLICATION FEATURES AND SERVICE FEE FOR EXPATRIATE EMPLOYMENT, DEPENDENT AND PROFESSIONAL VISIT PASSES EFFECTIVE 1 SEPTEMBER 2024 at https://esd.imi.gov.my/portal/latest-news/announcement/announcement-231-new-application-features/.

3  See: Expatriate Services Division, "MALAYSIA DIGITAL (MD) AND ICT COMPANIES UNDER MALAYSIA DIGITAL ECONOMY CORPORATION (MDEC) TO INITIATE EMPLOYMENT PASS APPLICATIONS VIA XPATS GATEWAY" (02 May 2024) at: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-220-mdec-xg/ .

Also see: Expatriate Services Division, "PRIVATE EDUCATION INSTITUTIONS UNDER THE MINISTRY OF HIGHER EDUCATION (MOHE) TO INITIATE EMPLOYMENT PASS APPLICATIONS VIA XPATS GATEWAY" (10 July 2024) at: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-224-mohe-xg-golive/.

Also see: Expatriate Services Division, "COMPANIES IN ISKANDAR MALAYSIA TO INITIATE EMPLOYMENT PASS APPLICATIONS VIA XPATS GATEWAY" (24 July 2024) at: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-228-companies-iskandar/.

4  See: Expatriate Services Division, "IMPROVEMENT INITIATIVE : PERMISSION TO WORK FOR FOREIGN PROFESSIONALS WITH SOCIAL VISIT PASS (PLS@XPATS) FOR EMERGENCY/CRITICAL TASK / WORK" (17 July 2024) at: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-226-pls-xpats/.

5  See: Expatriate Services Division, "OFFICIALLY LAUNCHED: EXPATRIATE SATELLITE CENTRE (ESC) AT TERMINAL 2 KUALA LUMPUR INTERNATIONAL AIRPORT (KLIA)" (29 July 2024) at: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-230-klia2-launched/ .

6  MDEC, "Discover #WorkFromMalaysia Opportunities With DE Rantau" at: https://mdec.my/derantau/foreign.

7  Immigration Department of Malaysia, "Visa Requirement by Country" at: https://www.imi.gov.my/index.php/en/main-services/visa/visa-requirement-by-country/.  


* Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.


Disclaimer

The information contained in this newsletter was submitted by the KPMG International member firm in Malaysia.

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