IMPACT – HIGH

The government has again extended the temporary movement control order (MCO) to mitigate the spread of COVID-19.

Key points:

  • The movement control order, originally implemented last month and then extended to April 14, has been extended again until April 28.
  • The Malaysia Expatriate Talent Service Centre (MYXpats Centre) and Immigration Department will be temporary closed until April 28. All communication with MYXpats Centre during the MCO will be limited to email only. Click here for more information.
  • The Ministry of International Trade and Industry has announced that certain sectors may operate during the MOC provided they follow strict health and safety guidelines. The sectors include, but are not limited to: the automotive industry; machinery and equipment industry; aerospace industry; construction and services related to construction work; the scientific sector; professional and technical services, including research and development; health services.

Background: Malaysia originally implemented measures to mitigate the spread of the virus that took effect March 18, and then extended the MCO until April 14.

Analysis & Comments: The response to the COVID-19 pandemic continues to develop and Deloitte will provide updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.

Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – HIGH

The Malawi government recently announced travel and visa restrictions to mitigate the spread of COVID-19.

Key points:

  • Malawi has instituted an emergency order banning all commercial international flights for a period of three weeks, effective from Wednesday, April 1, in order to prevent any imported COVID-19 cases. The ban does not apply to cargo or goods.
  • Effective from March 25, all visas on arrival at airports and ports of entry are suspended for three weeks. The suspension applies to all holders of passports who require a visa to enter the country. The suspension may be changed, depending on fluctuating COVID-19 circumstances.
  • The suspension does not apply to Malawi residents, or holders of visas or entry permits that were valid before March 25. New visas will not be processed during the suspension.
  • Government offices remain open at this time, but processing delays should be expected.
  • A temporary travel ban is currently in effect for travelers from the following countries: Austria, Belgium, China, Denmark, Finland, France, Germany, Greece, Iran, Italy, Japan, the Netherlands, Norway, South Korea, Spain, Switzerland, Sweden, the United Kingdom and the United States.
  • Quarantine facilities in Blantyre and Lilongwe have been designated for travelers demonstrating COVID-19 symptoms upon arrival.

Additional information: These measures remain subject to change, as they have been introduced in response to the rapidly changing global COVID-19 landscape.

Analysis & Comments: The new visa and travel restrictions will impact the movement of people into Malawi. Employers should account for affected travelers and rearrange travel schedules accordingly. Delays may occur for consular and in-country processing.

Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – HIGH

The government of Malaysia has extended the movement control order (MCO) it implemented earlier this month to mitigate the spread of COVID-19. The temporary MCO will continue to be in force until April 14.

Key Points:

  • Malaysian nationals are barred from traveling abroad.
  • Visitors are barred from entering Malaysia.
  • All government offices and private businesses will be closed, save those providing essential services.
  • Anyone who disobeys the MCO may face a fine of RM1,000 and/or six months in jail.

Analysis & Comments: Employers must continue to be prepared for significant disruptions to all but essential business and government functions. The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available.

Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – HIGH

The government of Malaysia has implemented strict immigration measures to mitigate the spread of COVID-19. The temporary measures will be in force from March 18 through March 31.

Key Points:

  • Malaysian nationals will be barred from traveling abroad.
  • Malaysian nationals returning from abroad must undergo a health inspection and 14-day self-quarantine.
  • All foreign nationals will be barred from entering Malaysia.
  • All government offices and private businesses will be closed, save those providing essential services.

Analysis & Comments: Employers must be prepared for significant disruptions to all but essential business and government functions. The response to the COVID-19 outbreak continues to develop, and Deloitte will provide additional updates as information becomes available.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

What is the change? The Malaysia Immigration Department (MID) has strictly enforced regulations on work pass holders working at second locations without permission.

What does the change mean? Employers must ensure foreign employees have permission to work at a second site and such permission must be visible and evidenced on the passport tied to the work pass.

  • Implementation time frame: The regulations have been re-enforced since January 2020.
  • Visas/permits affected: All work passes.
  • Who is affected: Employers of foreign laborers/expatriates working at second sites.
  • Business impact: Companies that fail to obtain permission for their work pass holders to work at a second site face strict penalties.
  • Next steps: Employers must submit an application for second site work permits to the relevant immigration authorities. Permission to work at a second location can only be obtained under certain circumstances and is not needed for short-term assignments. Employees are only granted permission to work at one second location at a time.

Background: The MID has enforced the rule in recent weeks by conducting unannounced raids where work pass holders are employed.

Analysis & Comments: Employers must obtain permission for work pass holders to work at second sites before they begin working. Further, second site permission may only be obtained for branches or projects operated by the same company. Work passes are invalidated if the conditions of their issuance are violated. Penalties for employers violating work pass conditions are harsh and include fines of RM 10,000-50,000 and/or imprisonment of six months to five years, and/or corporal punishment. Penalties for employees found working in violation of the terms of their work permit include imprisonment up to six months and/or a fine of up to RM 1,000.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

 

IMPACT – HIGH

What is the change? Malaysia has stepped up travel restrictions in an effort to stop the spread of coronavirus.

What does the change mean? Authorities will deny entry to Peninsular Malaysia to anyone who has been in Hubei, Jiangsu or Zhejiang provinces in the past 14 days. Entry will also be denied to People’s Republic of China (PRC) passport holders who were born in or had their visa issued in any of the three provinces. Previously, the ban only covered Hubei Province. Authorities in East Malaysia (Sabah and Sarawak) will ban entry to all PRC passport holders, regardless of where they are traveling from, and to all travelers from mainland China, regardless of nationality.

  • Implementation time frame: Immediate and ongoing.
  • Visas/permits affected: All visas issued in Hubei, Jiangsu or Zhejiang province for those traveling to Peninsular Malaysia.
  • Who is affected: PRC passport holders or nationals of other countries who have visited parts of China. The restrictions differ depending on the location of entry into Malaysia, as described above.
  • Business impact: The changes increase the difficulty of business travel for a growing number of PRC passport holders and other travelers who have visited China.

Analysis & Comments: Employers should be aware the entry restrictions. The response to the coronavirus is evolving rapidly, and Deloitte will alert clients to additional changes or restrictions as information becomes available.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

What is the change? The government has suspended granting visas to all PRC passport holders from Hubei Province in China in response to the spread of the coronavirus.

What does the change mean? All visas, including visa-waived entry, visas on arrival, e-visas and consular visas, are suspended for Chinese nationals from Hubei Province.

  • Implementation time frame: Jan. 27.
  • Visas/permits affected: All visas.
  • Who is affected: PRC passport holders from Hubei Province and their employers.
  • Impact on processing: Processing of visa applications for PRC passport holders from Hubei Province is suspended.
  • Business impact: Companies employing PRC passport holders from Hubei Province may face reduced staff.
  • Next steps: Employers should consider the visa suspension when hiring or assigning workers from Hubei Province.

Background: Since the coronavirus was first detected in December, countries have begun issuing travel bans and warnings to prevent the further spread of the virus.

Analysis & Comments: Employers should be aware of the suspension of visas for PRC passport holders from Hubei Province when filing visa applications. The government has said that immigration privileges will be available to affected Chinese nationals once the situation returns to normal. Deloitte will continue to monitor the situation and will provide updates when available.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

What is the change? The Malaysian Immigration Department (MID) has launched an e-Payment system that can be used with a credit or debit card.

What does the change mean? The MID will no longer accept cash for payment of immigration fees. Applicants instead will have to use the e-Payment system or pay with a bank draft.

  • Implementation time frame: Immediate and ongoing.
  • Services affected: All MID services.
  • Who is affected: Employers and foreign nationals seeking immigration services from the MID.
  • Next steps: Authorized company representatives, employers or applicants can use the e-Payment system by bringing a credit or debit card with them when visiting the MID office.

Additional information: Up until now, MID accepted cash or bank drafts for payment of fees upon submission of the applicant’s passport at immigration offices. This changed with the launch of the e-Payment system. While cash will no longer be accepted, officials have confirmed that bank drafts will continue to be an accepted method of payment.

Analysis & Comments: The MID’s move to cashless transactions is in line with current technology trends designed to ensure payment integrity. With this system in this place, companies should be able to mitigate the risk in cash handling as payment transactions will be immediately captured in the e-Payment system, which will be able to generate payment reports at any time upon request.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

What is the reminder? The Malaysia Digital Economy Corp. (MDEC) and the Expatriate Services Division (ESD) have begun accepting projections from companies on their 2020 needs for foreign knowledge workers.

  • Implementation time frame: Immediate and ongoing.
  • Visas/permits affected: Employment passes; professional visit passes.
  • Who is affected: Companies registered with MDEC (companies with MSC and ICT status) or ESD.
  • Processing: MDEC processing times range from 14 to 20 business days; ESD processing times range from seven to 10 business days.
  • Business impact: Foreign knowledge worker projections must be approved before applying for employment passes and professional visit passes (both new and renewal).

Analysis & Comments: Companies should plan to submit their foreign-worker projections as early as possible to avoid the year-end holiday slowdown. Although there is no official deadline for filing, companies should aim to obtain approval by Dec. 31 to avoid any issues in submitting renewal applications, especially renewals for permits that expire in January, February or March.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.

IMPACT – MEDIUM

What is the change? The Malaysia Digital Economy Corporation (MDEC) is now issuing approval letters with longer validity periods for ICT applicants.

What does the change mean? MDEC approval letters for ICT applicants will be issued with validity periods of six months instead of three months.

  • Effective date: Nov. 1.
  • Visas/permits affected: Employment passes and dependent passes.
  • Who is affected: ICT companies; ICT employment pass applicants
  • Business impact: ICT companies will now have six months from the issuance date of the approval letter to complete the endorsement process.

Analysis & Comments: The change is good news for ICT companies since they will have more time to endorse employment passes, and employees will have more time to start their assignments in Malaysia.

Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.