Some employment pass applications delayed

IMPACT – MEDIUM

What is the change? Malaysia is seeing delays in Stage 2 Employment Pass applications for MSC Status companies processed through the Malaysia Digital Economy Corporation.

What does the change mean? Employers and foreign nationals should anticipate that affected Stage 2 MSC Employment Pass applications will take up to four weeks (not including endorsement procedures) to process. Decisions are normally granted within two weeks, and businesses should adjust their planning accordingly.

• Implementation time frame: Ongoing.
• Visas/permits affected: Employment passes.
• Who is affected: Foreign nationals submitting Stage 2 Employment Pass applications and their dependents.
• Impact on processing times: Processing at MDEC for the applications listed above is taking roughly two weeks longer than normal. This time frame does not include the time it takes to get employment passes endorsed once they have been approved. Applications that are not processed through MDEC are not affected.
• Business Impact: Businesses and affected foreign nationals may need to adjust their schedules in response to the delays.

Background: The delays appear to be due to a high volume of applications. The e-Xpats Service Centre released a statement Tuesday saying immigration authorities are “looking into this matter to get it resolved as soon as possible.”

BAL Analysis: Until the delays are resolved, applicants should plan for processing times of up to four weeks for Stage 2 MSC Employment Pass applications processed through MDEC.

This alert has been provided by the BAL Global Practice group and our network provider located in Malaysia. For additional information, please contact your BAL attorney.

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