On 21 October 2025, the Immigration Department of Malaysia (Jabatan Imigresen Malaysia, JIM) introduced the Program Pengurusan Tinggal Lebih Masa (Overstay Management Programme), which modifies the handling of overstay incidents for Employment Pass (EP) and Dependant Pass (DP) holders.1
WHY THIS MATTERS
This development introduces a more streamlined process for managing overstays not exceeding 90 days. Instead of referral to the Enforcement Division (Bahagian Penguatkuasa Imigresen), eligible cases will be subject to a compound (monetary penalty). This may result in faster resolution for minor overstay cases, but organizations should note that non-eligible cases, including those exceeding 90 days, repeated overstays, or individuals with criminal records—will continue to be processed via enforcement channels.
Companies employing expatriates in Malaysia may need to review and reinforce internal procedures to avoid inadvertent overstays, which can affect both employee status and organizational compliance risk.
Key Highlights
Eligibility for Compounding
EP and DP holders with an overstay of up to 90 days may be compounded without referral to enforcement authorities.
Non-Eligible Cases
Overstays exceeding 90 days, repeated offenses, individuals under “Special Pass,” those with criminal or immigration offence records, or persons on the "Senarai Syak" (Suspect List) remain subject to enforcement referral.
Administrative Reminder
Organizations may wish to consider initiating renewal or extension applications at least three months before pass expiry to avoid overstay incidents and associated penalties.
KPMG INSIGHTS
While the announcement was issued by eXpats of Malaysia Digital Economy Corporation, the pass approving authority for companies with Malaysia Digital status or Information, Communication and Technology industry, the program is also applicable to other approving authorities (e.g., Expatriate Services Division) and other types of passes.
In light of the changes, organisations may wish to review their current tracking and notification systems for EP and DP expiry dates and consider initiating the renewal or extension process at least three months in advance to mitigate risks of overstay.
Readers may wish to contact their usual immigration adviser or a member of the KPMG team in Malaysia (see the Contacts section).
FOOTNOTE:
1 Immigration Department of Malaysia (Ministry of Home Affairs) website, Enforcement – Malaysian Immigration Department; also see Malaysia Digital Economy Corporation, “LATEST UPDATE FROM IMMIGRATION DEPARTMENT ON OVERSTAY AND SPECIAL PASS APPLICATIONS.”
Contacts
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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