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IMPACT – MEDIUM
What is the change? Malaysia’s Multimedia Development Corporation (MDeC) has announced updates to processing that will impact dependents, long-term social visit pass holders and Philippine nationals.
What does the change mean? Dependent passes will only be issued to applicants 18 years and younger; long-term visit pass holders cannot study, work or perform political activities; a requirement has been removed for certain foreign knowledge workers holding Philippine passports.
Background: According to the announcement issued Nov. 3, MDeC will only grant dependent passes to dependents 18 years old and younger. Dependents older than 18 will be granted long-term social visit passes. Long-term social visit pass holders are not allowed to study, work, start a business, or be involved in political speeches, lectures, talks or any political activities. The announcement also confirms a policy we reported last week that MDeC has stopped issuing work authorization (consent to work) to foreign workers’ spouses holding dependent passes. Spouses who wish to work must obtain an independent Employment Pass.
Under another rule change, foreign knowledge workers holding Philippine passports who enter Malaysia without obtaining a reference visa will no longer be required to show a Philippine Overseas Employment Administration certificate when they apply at the Immigration Department.
BAL Analysis: Foreign nationals visiting Malaysia or bringing dependent family members should be aware of these updated changes.
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.
Copyright © 2016 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
IMPACT – HIGH
What is the change? Malaysia’s Multimedia Development Corporation (MDeC) is no longer issuing work authorization (“consent to work”) to holders of Dependent Passes, i.e. spouses of Employment Pass holders.
What does the change mean? Spouses who want to work must cancel their Dependent Passes and apply for an Employment Pass.
Background: While there has not been an official announcement, the MDeC confirmed via telephone that as of September it has stopped accepting applications for work authorization, known as Consent to Work, for Dependent Pass holders. Consent to Work is an additional endorsement on a Dependent Pass that allows the spouse of an Employment Pass holder to work.
Spouses on Dependent Passes who wish to work must now cancel their Dependent Pass and apply for an Employment Pass. This only affects those applying through MDeC, which covers MSC Malaysia-status companies and information and communication technology (ICT) status companies.
BAL Analysis: This change may have advantages and disadvantages for employers. While it requires companies hiring Dependent Pass holders to take additional steps to cancel a Dependent Pass and apply for an Employment Pass, it also give employers more control because employees who were considered dependent family members are no longer tied to the employment status of the Employment Pass holder.
What is the change? The Diwali (Deepavali) holiday will be celebrated Oct. 22 – 24 in India and Oct. 22 in Singapore and Malaysia.
What does the change mean? Government offices will be closed in observance of the holiday and immigration services will be suspended.
Background: Diwali or Deepavali is the Hindu Festival of Lights signifying emergence from physical and spiritual darkness. Times may vary in different parts of India based on variations of the lunar month. Offices in Singapore and Malaysia will be closed in observance of the holiday on Oct. 22.
BAL Analysis: Employers and employees should submit applications before the holiday break to avoid delays.
This alert has been provided by the BAL Global Practice group in Singapore. For additional information, please contact singapore@bal.com.
What is the change? As of Oct. 1, companies under Malaysia’s Multimedia Development Corporation (MDeC) must submit applications for Professional Visit Passes (PVP) with the Expatriate Service Division (ESD).
What does the change mean? The e-Xpats Service Centre will no longer accept Professional Visit Pass applications.
Background: The announcement that MDeC companies must file PVP applications through ESD starting Oct. 1 coincides with Malaysia’s announcement last week that all PVP applications must be submitted electronically through ESD’s online portal, also beginning Oct. 1. The Immigration Department discontinued manual submissions of PVP applications on Sept. 25.
The changes mean that MDeC companies must first register with the ESD before they can file PVP applications. This is likely to cause a backlog in registration which will in turn delay all PVP applications.
BAL Analysis: Currently, thousands of companies are waiting to be registered with the ESD’s online portal. The current wait time is six to eight weeks and could be stretched to two to three months as MDeC companies join the queue to register.
What is the change? Effective immediately, Malaysia has imposed mandatory e-filing for Professional Visit Pass (PVP) applications.
What does the change mean? The Immigration Department has stopped accepting manual filings. Beginning Oct. 1, employers must submit PVP applications electronically through the Expatriate Services Division’s (ESD) online portal, but the Immigration Department has not yet provided guidance on how to file electronically.
Background: This week, the Immigration Department announced that PVPs would be processed only through the ESD beginning Oct. 1 and that it would no longer accept in-person filings. However, on Sept. 25, it announced that the change was taking effect immediately so that it could clear its docket of manually filed applications before Oct. 1.
PVPs allow foreign nationals to work in Malaysia on assignments of up to 12 months while remaining on the overseas employer’s payroll. The PVP must be sponsored by a registered Malaysian company.
BAL Analysis: The sudden and unexpected e-filing requirement creates short-term confusion for employers applying for PVPs. This is because companies awaiting approval of their ESD registration cannot file electronically until their registration is approved, nor can they file manually now that e-filing has become mandatory. In urgent cases, companies that are awaiting ESD registration and need to process PVPs may seek an appointment with the director of the Immigration Department to request special approval of PVPs.
IMPACT – LOW
What is the change? Malaysia’s immigration department has suspended issuance of i-Pass identification cards until further notice.
What does the change mean? The i-Pass is merely an additional form of identification that can be used instead of a passport in peninsular Malaysia. The overall work permit process will not be affected.
Background: The Malaysian government introduced i-Pass identification cards in 2011 as a travel document that can be used in place of a passport in peninsular Malaysia. Passports are still required for travel to Sabah and Sarawak. Little information was available on why the government suspended issuance of i-Pass cards, though it appears the suspension is related to an internal matter in the Malaysian immigration department.
BAL Analysis: The suspension does not affect the work permit application process generally because the i-Pass is only an additional form of identification meant to make some business travel easier. Travelers who previously would have been eligible for i-Pass should make sure they carry their passports when working or traveling in Malaysia.
What is the change? The Malaysia e-Xpats Centre has announced its holiday schedule for the end of July for Aidilfitri (Eid al-Fitr).
What does the change mean? Applicants should observe the submission deadlines to avoid delays in processing.
Background: In celebration of the Aidilfitri (Eid al-Fitr) holiday at the end of Hari Raya (Ramadan), the center will be closed from midday July 25 through July 30. It will reopen July 31.
The following filing deadlines apply for obtaining decisions before the holiday break:
By July 9
By July 25
July 31 or later
By July 18
*Note that between July 21 and July 25, the Center will not collect original passports for security reasons. Applications submitted without an original passport must contain copies of the following pages of an applicant’s passport:
BAL Analysis: Employers whose schedules require decisions on various applications before July 25 should move quickly to meet these holiday deadlines.
What is the change? Malaysia will begin to strictly enforce in-person filing of applications for Professional Visit Passes.
What does the change mean? A representative of the sponsoring employer must file in person at Malaysian Immigration Department (MID) headquarters in Putrajaya.
Background: The MID is enforcing in-person filings for Professional Visit Passes to root out fraudulent applications. Beginning June 15, a corporate representative of the sponsoring employer must submit applications in person and verify their identity by presenting a recent Employee Provident Fund statement showing contributions within the three months prior to the date of the Professional Visit Pass application. This is the only identification that MID will accept.
BAL Analysis: The new rule signals greater scrutiny of Professional Visit Pass applications and will create an extra step in the process for businesses.
What is the change? Malaysia is enforcing stricter travel rules for foreign workers who have filed to cancel their employment passes.
What does the change mean? Foreign workers risk being denied reentry if they leave Malaysia while their employment pass cancelations are pending.
Background: Effective immediately, the Malaysian Immigration Department will no longer recognize the reentry privileges of an employment pass once a foreign worker has filed to cancel it. In the past, foreigners could travel and reenter Malaysia up until the requested effective cancelation date of their EP. Now, the employment pass is cancelled immediately upon leaving Malaysia if a cancellation request has been submitted to the authorities. This means the affected foreign nationals will lose their ability to work upon their return to Malaysia. Further, visa nationals could be denied reentry and forced to apply abroad for an entry visa, which would allow them to reenter Malaysia but does not authorize work. Therefore, a foreign worker who has filed to cancel an employment pass should stay in Malaysia until the requested end date.
BAL Analysis: The change in rules comes without notice, and foreign employees at the end of their assignments are strongly advised to avoid leaving Malaysia after their cancellation requests are submitted, even if they are changing employers in Malaysia.
What is the change? With little notice, the Putrajaya headquarters of the Immigration Department of Malaysia has mandated that all companies use the new online portal to apply for employment passes.
What does the change mean? Manual applications are no longer accepted and companies must enroll in the Expatriate Services Department’s online portal before they can submit employment pass applications in Putrajaya.
Background: The Immigration Department of Malaysia launched the online portal last month, starting with energy sector companies and later phasing in six more industries. The Putrajaya headquarters verbally confirmed that it is enforcing mandatory online portal registration for all companies ahead of a scheduled rollout. As of April 21, companies processing applications through Putrajaya will no longer be able to submit applications over the counter.
BAL Analysis: To avoid delays, employers should work with their BAL attorney to gather the information necessary to register on the portal.