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      The Immigration Department of Malaysia (Jabatan Imigresen Malaysia, JIM), under directive from the Ministry of Home Affairs (MOHA), has mandated companies to shorten expatriate passes before permanent departure from Malaysia and to complete Exit Clearance for expired Employment Pass (EP) and Professional Visit Pass (PVP) holders. The directive establishes formal processes, documentary requirements, and compliance deadlines for all EP and PVP holders who did not cancel their passes prior departing from Malaysia.

      These requirements became effective 18 November 2025 onwards and now apply to all passes managed via the Malaysia Digital Economy Corporation (MDEC)’s eXpats1 and Expatriate Services Division (ESD) Online system.2

      WHY THIS MATTERS

      The pass shortening and Exit Clearance rules introduce significant compliance obligations for organizations employing expatriates in Malaysia.

      For mobile employees, these measures may lead to smoother departure processes but require advanced coordination to confirm all documentation is complete and available for inspection.

      Failure to follow these steps may affect both individual immigration status and the company’s ability to sponsor future expatriates.

      Background

      Previously, expatriate departure procedures were less formalized, with no mandatory pass shortening or structured exit clearance process upon pass expiry. Companies were not required to provide systematic evidence of departure, and non-compliance did not directly affect future application rights within the eXpats and ESD Online system. The new directive establishes formal processes, documentary requirements, and compliance deadlines for all departing EP and PVP holders.

      Key Highlights

      Mandatory Pass Shortening

      • Companies must submit a pass shortening application via eXpats or ESD Online for all expatriates permanently departing Malaysia, regardless of remaining pass validity.
      • A cancelled Pass/ePASS or Shorten Pass Slip must be retained by the pass holder throughout the departure process.

      Exit Clearance Requirement

      • If no renewal or pass shortening application is submitted after pass expiry, the company must complete Exit Clearance via eXpats or ESD Online within 30 days from the pass expiry date.
      • Required documents include the expatriate’s full passport copy and proof of exit (exit stamp, boarding pass, flight ticket, Autogate slip), a shortened pass from a Malaysian Embassy abroad, or a statutory declaration endorsed by a Commissioner of Oaths.
      • eXpats and ESD Online will monitor the applicant’s exit status; if no exit is detected within 30 days, further declaration is required within seven days.

      Consequences of Non-Compliance

      Failure to submit Exit Clearance will result in restrictions on the company’s eXpats and ESD Online account, preventing new application submissions until the requirement is fulfilled.

      Support and Guidance

      Companies may contact the following:

      Also, check the FAQs on Pass Shortening & Exit Clearance.3

      KPMG INSIGHTS

      In light of the upcoming changes, organisations may wish to consider the following:

      • Update departure protocols to include mandatory pass shortening and Exit Clearance steps for all expatriates and assignees.
      • Track pass expiry dates proactively and initiate necessary applications well before departure or expiry.
      • Educate human resources and mobility teams on eXpats and ESD Online processes and required documentation.
      • Inform expatriates and assignees of new requirements to increase compliance and avoid delays at departure.

      Readers may wish to contact their usual immigration adviser or a member of the KPMG team in Malaysia (see the Contacts section).

      FOOTNOTES:

      1  MDEC announcement on 19 November 2025 (Ref. no. BSD-EXPATS-ANNC-MDEC-242 D20251113) or EXPATS EXIT CLEARANCE MODULE- Expats | MDEC.

      2 Expatriate Services Division, Bahagian Khidmat Ekspatriat, Immigration Department of Malaysia, Updates for EP and DP holders, dated 14 November 2025.

      3 Expatriate Services Division, Bahagian Khidmat Ekspatriat, Immigration Department of Malaysia, Pass Shortening & Exit Clearance – Frequently Asked Questions (FAQ).

      Contacts

      yen-ping-long
      Yenping Long

      Partner, Global Mobility Services

      KPMG in Malaysia

      michelle-foo
      Michelle Foo

      Associate Director

      KPMG in Malaysia

      nur-aliaatul-shahira-mohamad-naguib
      Nur Aliaatul Shahira Mohamad Naguib

      Immigration Manager

      KPMG in Malaysia

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      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.

      GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

      © 2025 KPMG Tax Services Sdn Bhd, a company incorporated under Malaysian law and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.