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IMPACT – MEDIUM
What is the change? The Malaysian Immigration Department is rolling out registration for access to services through the Expatriate Services Division (ESD) online portal to six more industries: agriculture, finance, medicine, mining, sports and tourism.
What does the change mean? Companies in these sectors must register in the new system to be able to file online applications for employment passes.
Background: The Malaysian Immigration Department is beginning Phase Two of the launch of its new online portal. Phase One launched the portal for oil, gas and energy sector companies earlier this month. Phase Two will extend use of the portal to employers in the agriculture, financial, medical, mining, sports and tourism sectors. There is no information yet on which industries may be included in Phase Three.
As BAL reported during the Phase 1 launch, the rollout of the portal requires each employer to undergo a process of registration. Phase Two companies may begin the registration process at any time from March 12 onward. Registered employers can use the portal to apply for and renew employment passes, transfer employment passes to new passports, and obtain other employment pass-related services, as well as book appointments with ESD representatives.
The Malaysian Immigration Department will eventually require all companies to submit employment pass applications online through the ESD portal. The Immigration Department recently released a notice that employers in the Phase One and Phase Two industries are required to use the ESD portal to submit filings from April 1. However, given previous delays in the implementation of the ESD program, that date may be subject to change.
BAL Analysis: Once fully implemented, the ESD system may significantly speed up processing times for employment pass-related services. The initial registration process, which may include site inspections, increases the Immigration Department’s oversight of employers. Contact your BAL attorney for updates and assistance in preparing for employer registration.
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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What is the change? The Immigration Department has launched an online portal to register and monitor companies, starting with the energy sector.
What does the change mean? Oil, gas and energy companies must register through the portal, which is called the Expatriate Services Division (ESD). Companies will then be able to file Employment Pass applications online.
Background: The Expatriate Services Division will require registration before companies can apply for any Employment Pass applications. At this time, the ESD is only being rolled out to oil, gas and energy sector companies.
Companies will have to identify representatives who will be responsible for logging into the portal. Only authorized representatives will be allowed to apply on the company’s behalf. Companies will have to fill in all information requested, and the Immigration Department may ask the company to give a presentation about the company. The Immigration Department may also conduct an on-site inspection of company premises. Only when the Immigration Department is satisfied will it issue a password for ESD access. At that point, companies can submit Employment Pass applications to the Immigration Department. The portal will also provide access to services regarding other issues, such as transferring an Employment Pass endorsement to a new passport. It will also allow companies to book appointments online with ESD officers.
BAL Analysis: The online registration may reduce some wait times by allowing online booking of appointments. However, overall impact on processing times will not be fully known until the portal is in use. The initial registration process, including information requests and possible on-site investigations, may signal greater oversight by the Immigration Department.
Effective Oct. 1, clients must comply with two new exit requirements in order to avoid immigration penalties. The first new requirement is that holders of professional visit passes (PVPs) and student passes must obtain exit memos before departing Malaysia. The exit memo must be presented along with the passport during departure from the airport.
Second, pass holders will now be required to cancel their passes if the holder will be departing before the pass expires. Previously, if an expatriate employee departed the country before his or her PVP or student pass was due to expire, the permit could be allowed to expire automatically. According to the new requirement, if the holder departs on the same day the pass expires, no cancellation is necessary. However, he or she will still need to obtain an exit memo before departure.
It is the employer’s responsibility to see that both new requirements are fulfilled. A request letter from the employer must be provided in order to obtain both pass cancellation and exit memos. The government has not yet provided details about how noncompliant employers and universities will be penalized.
This alert has been provided by the BAL Global Practice group and our network provider located in Malaysia. For additional information, please contact GlobalVisaGroup@bal.com.
Clients are advised to gather information from expatriate employees about any foreign nationals the expatriates employ as domestic staff. Recently, BAL has become aware of several cases wherein companies were blacklisted by government authorities when an employee’s maid left without notice. As described in detail below, this can have serious consequences.
Blacklisting For blacklisted companies:
Understanding the Situation When a foreign national is hired as a maid by an expatriate employee, the maid’s immigration status is tied in with the expatriate’s status. The maid’s immigration application is filed with the expatriate’s Employment Pass reference number. A maid who leaves without giving notice has violated the conditions of his or her own immigration status. If the expatriate’s maid leaves without giving notice, it is up to the company who employs the expatriate to make a full report to the police and immigration authorities. The report will be filed with the expatriate’s immigration records.
If no report is filed, blacklisting can happen automatically within the electronic system used by the immigration authorities. BAL and its network partner are discussing this situation with government representatives, but no changes are yet in the works.
When a company is blacklisted, immigration authorities will provide the name and passport number of the maid, but will not provide information about which expatriate employed the individual. Therefore, it can be difficult to identify which expatriate is involved. This makes it harder for the company to clear blacklisting.
How to be Prepared Under the current system, it is impossible for an employer to prevent this situation. However, BAL advises companies to take the steps below to be prepared for action if blacklisting occurs.
This alert has been provided by the BAL Global Practice group in Malaysia. For additional information, please contact GlobalVisaGroup@bal.com.