IMPACT – MEDIUM
What is the change? The Malaysia Digital Economy Corporation is set to launch a new version of its eXpats system. The change will affect processing times, fees and payment methods.
What does the change mean? Employers should take note not only of the pending changes, but also of the deadlines for filing applications in the current system before the new system is launched. Employers who miss the deadlines (described below) will have to resubmit applications once the new system is implemented.
Key information: The Nov. 15 changes will include the implementation of a new online portal, new processing times, an updated fee structure and a change in acceptable forms of payment.
The processing times will apply to both new applications and renewals. Applications involving a change in employers will probably take longer because they involve additional requirements, including post-dated permit cancellation, no-objection letters and income-tax clearance. Processing will be delayed if applications are not completed properly.
Transition planning: MDEC has set up cutoff dates by which applicants companies must submit applications in order for them to be completed in the current system. Applicants who miss the cutoff dates will be forced to wait and submit applications after the new system is implemented. Cutoff dates will be as follows:
BAL Analysis: Employers may wish to submit time-sensitive applications before the Nov. 10 cutoff date; however, there could be advantages to waiting to submit applications once the new system is launched. Employers should work with BAL to strategize about when to submit applications and how to ensure they are in compliance with MDEC’s new requirements.
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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