Registration required for MDEC employers

IMPACT — MEDIUM

The Malaysian government will require employers to register with government authorities in February in order to hire foreign nationals under the Malaysia Digital Economy Corporation.

Key Points:

• Beginning Feb. 1, employers hiring foreign nationals under the MDEC must obtain an approval letter from the Department of Labor Peninsular Malaysia (JTKSM) or have proof of prior registration with the JTKSM.
• Employers who do not obtain approval or submit a registration will not be able to apply for Work Pass projections, which are required to apply for Work Passes for foreign nationals.
• Employers must register for specific industries in which they intend to hire foreign nationals with the JTKSM.
• Employers can obtain a letter from the JTKSM through this website.

Additional Information: The registration requirement does not affect work and immigration authorizations that were issued before Jan. 1, 2023.

BAL Analysis: Employers should seek to obtain an approval letter or have proof of registration with the JTKSM as soon as possible to avoid delays when applying for Work Pass projections.

This alert has been provided by the BAL Global Practice Group. For additional information, please contact berryapplemanleiden@bal.com.

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