Malaysia | Update for MDEC registered employers

The Malaysian government has stated that Malaysia Digital Economy Corporation registered employers should now file employment pass applications through the Xpats Gateway system.

Key Points:

• Effective April 24, all new and renewal applications for employment passes are required to be made through the Xpats Gateway system for MDEC registered companies.
• Companies are advised to use their existing MDEC Expats system login information.
• The Xpats Gateway system is now open to IT sectors; previously, it was open only to non-IT sectors.

Background: The government implemented the new Employment (Amendment) Act 2022 in order to protect local labor in Malaysia. MDEC is a government agency under the Ministry of Digital and was established in 1996 to lead Malaysia’s digital economy. The government launched a digital initiative to encourage and attract global talent and grow Malaysian businesses and the economy.

BAL Analysis: The Malaysian government intends for this updated procedure to be similar to the existing procedure for expatriate services division registered companies and to improve processing times for applicants.

This alert has been provided by the BAL Global Practice Group.

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