The Expatriate Service Division (“ESD”) of the Immigration Department of Malaysia has issued an updated announcement on the full deployment of online applications as well as improvements to processes to handle more applications. (For related coverage, see GMS Flash Alert 2024-165, 7 August 2024.)
WHY THIS MATTERS
Application processes and timelines will be impacted by these changes, in many cases, making things simpler and more convenient.
However, as the process is new and with digitalisation, delays or setbacks may be expected at the early stages of deployment.
Highlights
- Simplified application process for the Professional Visit Pass with a reduction in the required documentation.1
- Full deployment of online applications by the ESD with effect from 15 August 2024, where manual applications will no longer be accepted over the counter.2
A company’s ESD account activation and admendment of the Letter of Undertaking (“LOU”) to update details of the authorised personnel to liaise with the ESD on behalf of the company, has been made available online effective from 20 August 2024.3
More details
- The simplified process for the Professional Visit Pass means a reduction by up to seven (7) documents previously required for the application. The following documents are no longer required for submission:
- Offer letter from the receiving company in Malaysia;
- Acceptance letter from the employer in home country;
- Job description of the assignment;
- Work schedule during the assignment in Malaysia;
- Applicant’s academic certificate and resume;
- Bank guarantee (for Chinese and Bangladeshi nationals).
- The online applications which were partially deployed are now fully deployed. The following applications are to be applied online via the ESD’s online system:
- 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;
- Permission to study for children of expatriates; and
- Permission to work at a second location / branch / site office.
The implementation of the online process for a company’s ESD account activation, after the company is successfully registered with the ESD, will eliminate the requirement for the company’s director to visit the ESD’s office in person to sign the LOU. Subsequent amendments to the LOU will also be submitted online via the ESD’s system.
KPMG INSIGHTS
The improvements and enhancements around digitalisation are expected to give companies a greater degree of flexibility with respect to:
- making applications at their fingertips 24/7,
- reducing limitations affecting working hours (which should cement Malaysia’s reputation as a business-friendly country).
This is expected to have a positive effect on economic growth.
There may be a ‘flip side’ to all this, however. While the number of documents may seem to be reduced, in actual practice, all the details and information must still be provided in the template letter or filled in the online form in the ESD’s system.
Nevertheless, the changes are still welcome because, as noted, they are expected to reduce the time it takes to prepare all the necessary documentation and travel to the ESD’s office for manual submission.
Companies must make sure that all conditions and requirements are complied with, such as maintaining updates to the company’s details in the ESD’s online system, renewing in a timely manner relevant business required licenses, obtaining prior approvals from the Department of Labour, just to name a few, so that they are compliant with all the relevant regulations.
Contacts
Additional Resources
Footnotes
1 See: Expatriate Services Division, “SIMPLIFIED DOCUMENT REQUIREMENTS FOR PROFESSIONAL VISIT PASS APPLICATON (12 August 2024) at: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-233-simplified-document/.
2 See: Expatriate Services Division, “COMPLETE REDEPLOYMENT OF ONLINE SUB-PRODUCT SERVICES VIA ESD ONLINE SYSTEM” (15 August 2024) at: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-234-complete-subproducts/.
3 See: Expatriate Services Division, "LOU DIGITALISATION : ONLINE COMPANY ACTIVATION & LETTER OF UNDERTAKING (LOU) AMENDMENT (EFFECTIVE 20 AUGUST 2024) (16 August 2024) at: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-235-lou-online/.
Also see: Expatriate Services Division, Guidebook V5 at: https://esd.imi.gov.my/portal/pdf/ESD_Online_Guidebook_V5_2024_(140824).pdf.
Disclaimer
* 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.
The information contained in this newsletter was submitted by the KPMG International member firm in Malaysia.
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