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IMPACT – MEDIUM
What is the change? The Malaysia Digital Economy Corporation (MDEC) has implemented new rules impacting dependent children born in Malaysia.
What does the change mean? Effective immediately, MDEC requires newly born children of foreign nationals born in Malaysia to hold a Special Pass (SP) while waiting for their Dependent Pass (DP) to be adjudicated. For children currently between one to six months old, the SP applications must be filed through the Immigration Unit of MDEC. In addition, it is now necessary to include proof of the SP documents when applying for stage 2 of the DP (endorsement stage). Alternatively, for children seven months old and older, the SP application is filed through the Enforcement Unit of the Immigration Department in Putrajaya.
Analysis & Comments: The change, announced by the MDEC, adds an additional step to visa and permit processing for foreign nationals with newly born children born in Malaysia and requires them to apply for an SP before applying for a DP.
Source: 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.
What is the change? The Malaysia Digital Economy Corporation (MDEC) has implemented new rules impacting Nigerian nationals.
What does the change mean? Effective Sept. 1, MDEC requires companies to submit certain documents for Nigerian nationals, duly stamped by the Malaysian High Commission in Nigeria. The documents include education certificates, marriage licenses, birth certification and documents that prove relationships. This requirement is only applicable for new Employment Pass (EP) and Dependent Pass (DP) applications.
Analysis & Comments: The change adds an additional step to visa and permit processing for Nigerian nationals associated with MDEC registered companies and requires them to make a trip to the nearest Malaysian High Commission prior to submitting an EP or DP application.
What is the change? The Immigration Department of Malaysia has suspended issuance of i-Kad identification cards until further notice.
Additional information: The i-Kad is a biometric ID card that is issued to foreign nationals holding a Category I or Category II employment pass. Foreign nationals can use i-Kads in Malaysia as an alternative ID to their passport. They can also use them to access e-gate facilities when entering Malaysia via Kuala Lumpur International Airport (KLIA I or KLIA II).
Analysis & Comments: The suspension is not expected to adversely impact the immigration status of Employment Pass holders as long as their Employment Passes are valid. Foreign nationals who have i-Kads can continue using them until they expire. Those who do not have i-Kads are encouraged to carry their passports as ID while in Malaysia. Foreign nationals who do not have valid i-Kads will not be able to access e-gate facilities when entering Malaysia.
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.
What is the change? The Malaysian Expatriate Services Division has postponed fee increases that were announced earlier this year and were initially set to take effect June 1.
Pending a further announcement, ESD companies will continue paying fees based on the MYXpats Centre’s previous fee structure:
Analysis & Comments: The Expatriate Services Division had been set to significantly increase fees for the services listed above. Authorities subsequently announced, however, that the previous fees will continue to be charged until further notice.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
What is the change? The Malaysia Digital Economy Corporation has announced its holiday schedule for the upcoming Hari Raya Aidilfitri (Eid al-Fitr).
What does the change mean? Applications under MDEC’s purview that are received after May 22 will not be decided until after the holiday break. The cutoff for endorsement of passes is May 28. Normal operations will resume June 10.
Additional information: Officials have announced the following cutoff dates for submission of Stage 1 Approval and Stage 2 Endorsement for MSC Malaysia Status companies and ICT Sector companies.
Analysis & Comments: In order to avoid processing delays, employers are encouraged to submit applications according to the cutoff dates provided by the authorities.
What is the change? The Malaysian Expatriate Services Division (ESD) has announced new application features and fees for expatriate employment permits and professional visit passes. The changes will go into effect June 1.
Key points:
*However, immigration charges will apply. The method of payment for the immigration charges has yet to be announced by ESD. Companies are informed to wait for the announcement.
Additional information: Effective June 1, the MYXpats Centre will refund 60% of the application fee for rejected applications, excluding the immigration service fee, which will not be refunded.
Analysis & Comments: Companies should factor the fee increases into their budgets and, if possible, consider filing affected applications before the rate hikes take effect. More information on the changes can be found here.
What is the change? Malaysia’s Expatriate Services Division has set a new age limit requirement for Long Term Social Visit Pass applicants.
What does the change mean? Only those between the ages of 18 and 25 may apply for the passes. Foreign nationals who meet the age requirement must submit a letter from the Commissioner for Oaths and Embassy verifying their marital and employment status when applying for new and renewed Long Term Social Visit Passes.
Analysis & Comments: Foreign nationals applying for a new or renewed Long Term Social Visit Pass are reminded that according to the new requirements, individuals over 25 years of age are no longer allowed to apply for the pass, with the exception of dependents with disabilities.
Important announcement: Employers in Malaysia must register their foreign workers, including expatriates who hold valid documents, with Malaysia’s Social Security Organization (SOCSO) for Employment Injury Scheme (EIS) benefits.
What is the change? The changes went into effect for employers starting with their Jan. 1 payrolls. Their contributions to SOCSO for foreign workers are due on the 15th of every month, starting in February. These employer contributions are mandatory until foreign workers cease their employment in Malaysia.
What do these benefits include? The EIS benefits offer protection for employees against accident or occupational illness arising out of, or in the course of, employment. This includes medical, temporary/permanent disablement, rehabilitation, and dependent’s benefits; constant attendance allowance; and 6,500 ringgit for repatriation costs.
What is not included? Benefits under the Invalidity Scheme and protection for employees who suffer invalidity or death due to any cause unrelated to employment will not be extended to foreign workers.
Background: Previously, Malaysia only provided Malaysian citizens or permanent residents with EIS benefits through SOCSO.
Analysis & Comments: The Malaysian government’s decision to require EIS protection for all foreign workers, including expatriates, is in line with the International Labor Organization’s Equality of Treatment (Accident Compensation) Convention, and the Conference Committee on the Application of Standards. With these changes, all foreign workers in Malaysia are now afforded the same EIS benefits as local employees.
IMPACT – HIGH
Important announcement: Malaysia’s Expatriate Services Division and MYXpats Centre are conducting a mandatory customer-service survey of all users who maintain an account on the ESD portal. The ESD portal accounts will be blocked until the survey is completed by the company’s appointed endorser and login ID user.
Background: The MYXpats Centre has sent emails to ESD portal account holders—both the company’s appointed endorser and login ID user—informing them of the survey and providing a link to it. The survey, which is mandatory, is intended to obtain feedback from users about their experience in using ESD and MYXpats Centre services. All users are blocked from accessing their accounts until they complete the survey.
Analysis & Comments: All company endorsers and users of the ESD portal should complete the survey as soon as possible. Accounts will only be unlocked when both the endorser and the login ID user have completed the survey. The MYXpats Centre has said that the survey responses are confidential and will only be used for purposes of obtaining client feedback to improve services.
Medium Priority
What is the immigration news? Beginning Dec. 3, Malaysian employers may begin filing their Foreign Knowledge Worker, or FKW, projections for the first quarter of 2019.
BAL Analysis: The eXpats Service Center is asking that only companies who need foreign workers in the first quarter next year (new or renewal) file projections in order to ease the number of requests and shorten processing times. Companies needing foreign workers after the first quarter may file their projections throughout 2019 as the need arises. Companies are also reminded to make sure when they file their projections that they select the correct year of their projection, as unused requests for 2018 will be forfeited on Dec. 31.
This alert has been provided by the BAL Global Practice group and our network provider Permit Pro Consultancy in Malaysia. For additional information, please contact your BAL attorney.
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