Malaysia Archives

IMPACT – MEDIUM

What is the change? The MYXpats Centre has announced that it will be closed for a half day Thursday, June 14 and for the full day Friday, June 15 for the for the Hari Raya Aidilfitri (Eid al-Fitr) holiday.

What does the change mean? Employers and employees should submit their payments and passports no later than the cutoff dates listed below if they require MYXpats services before the holiday.

Implementation time frame: June 14 and 15. Normal services will resume June 18.
Visas/permit affected: All MYXpats Centre services.
Who is affected: Employers and foreign nationals who need MYXpats Centre services.
Business impact: Businesses may need to adjust their timelines because of the holiday closures and related filing deadlines.

Key Dates: The cutoff dates for submission of payments and passport endorsements will be as follows:

Pass Type	Cutoff Date
Employment Pass, related passes	Submissions of payments and passports cannot be made after June 8 in order to have passports returned before the holiday. Passports submitted before this date must be collected no later than June 13.
Residence Pass-Talent	Submissions of payments and passports cannot be made after June 7 in order to have passports returned before the holiday. Passports submitted before this date must be collected no later than June 13.

Employers and foreign nationals will be able to access the MYXpats Centre’s online system during the holiday closures; however, depending on when online submissions are made, they may not be processed until the office reopens June 18.

BAL Analysis: Employers and employees should plan to submit any time-sensitive applications ahead of the holiday closure. Employers should also note that the eXpats Service Centre announced separate filing cutoff dates for its services earlier this month.

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 © 2018 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 – MEDIUM

What is the change? Government offices will be closed Thursday and Friday following Wednesday’s general election. Offices will reopen Monday.

What does the change mean? Employers who need government services, including services from the MYXpats Centre or eXpats Service Centre, may need to adjust timelines and should expect delays when offices reopen.

Implementation time frame: May 9-11.
Visas/permit affected: All government immigration services, including MYXpats Centre and eXpats Service Centre services.
Who is affected: Employers and foreign nationals in Malaysia.
Business impact: Businesses may need to make adjustments to timelines because of the closures.

Background: Offices were closed Wednesday when voters went to the polls for Malaysia’s 14th general election. Offices were initially expected to reopen Thursday, but government officials subsequently announced that they would remain closed for the remainder of the week.

BAL Analysis: Employers who need services should expect delays and plan accordingly.

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 © 2018 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 – MEDIUM

What is the change? The MYXpats Centre and eXpats Service Centre will be closed Wednesday, when Malaysia will hold a general election.

What does the change mean? Employers who need services from the MYXpats Centre or eXpats Service Centre should expect delays when offices reopen.

Implementation time frame: May 9.
Visas/permit affected: All MYXpats Centre and eXpats Service Centre services.
Who is affected: Employers and foreign nationals in Malaysia.
Business impact: Businesses may need to make minor adjustments to timelines because of the closures on election day.

Background: Offices will be closed Wednesday when voters go to the polls for Malaysia’s 14th general election. Immigration offices offered limited services Tuesday. Full services will resume Thursday.

BAL Analysis: Employers who need services should expect delays this week because of the election.

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 © 2018 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 – MEDIUM

What is the change? Authorities in Malaysia will restrict permit and visa filing during the Christmas and New Year’s holiday period.

What does the change mean? Companies should take note of the limited services and plan accordingly.

Implementation time frame: Roughly between Dec. 21 and Jan. 2, depending on the location.
Visas/permits affected: Employment passes, professional visit passes and other immigration-related services.
Who is affected: Employers and foreign nationals in Malaysia.
Next steps: Employers and employees should lodge applications as soon as possible and no later than the cutoff dates listed below if they need decisions before the holidays.

Key dates: In West Malaysia, the Expatriate Service Division’s online system will not be available from 6 p.m. on Dec. 26 through 8 a.m. on Jan. 2. During this period, authorities will not accept online applications for employment passes and professional visit passes or other immigration services handled by the system.

In East Malaysia, passport collection will not be available between Dec. 21 and Jan. 1 in Sarawak and Labuan and between Dec. 28 and Jan. 1 in Sabah. Application submissions will not be accepted from Dec. 28 to Jan. 1 in Sarawak and Sabah and from Dec. 26 to Jan. 1 in Labuan.

BAL Analysis: Businesses may need to adjust their timelines because of the holiday closures. Processing delays should be expected both during the holiday period and in the days after offices reopen. Foreign consulates will also likely operate on a limited basis during the holidays. Those in need of consular services are encouraged to contact the consulate in question about holiday schedules and services.

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 © 2017 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 – MEDIUM

What is the change? The Malaysia Digital Economy Corp. will soon begin accepting 2018 Foreign Knowledge Worker (FKW) projections.

What does the change mean? Companies that are registered with the MDEC should prepare their requests for foreign workers for 2018. Companies will not be able to submit new or renewal applications in 2018 until the new FKW projections are submitted and approved.

Implementation time frame: The eXpats system within MDEC will accept projections starting Friday.
Visas/permits affected: Employment passes, new and renewal cases.
Who is affected: MDEC-registered companies with MSC and ICT status that are planning to hire foreign knowledge workers in 2018.
Impact on business: Delays in submitting the FKW projections will directly impact a company’s ability to apply for employment passes in 2018.

Background: FKW projections must be approved before companies may apply for employment passes. MSC- and ICT-status companies may begin submitting FKW projections to the eXpats system beginning Dec. 8.

BAL Analysis: Companies should submit their FKW projections for 2018 as early as possible if they intend to apply for employment passes by the beginning of 2018. The standard processing timeline is five to 10 working days from the date of submission. Companies expecting to hire large numbers of foreign workers should also anticipate the possibility of longer timelines if they are asked to submit additional documentation to support their requests for foreign workers.

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 © 2017 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 – MEDIUM

What is the change? Companies are reminded that beginning Aug. 1 they will be required to update information in their ESD accounts using the new update function in the ESD portal.

What does the change mean? Companies that fail to keep company information updated may face consequences, including the possibility of having their employment pass and professional visit pass applications put on hold.

Implementation time frame: Aug. 1.
Visas/permits affected: Employment passes and professional visit passes.
Who is affected: Companies that are registered with the Expatriate Services Division.
Business impact: ESD-registered companies should plan to update their business information beginning Aug. 1. Companies should plan to update their information every year, and should also be sure to provide updates on any changes, including those to their address, financials, directors, shareholders or other details that affect their business profile.

Background: Malaysia’s Expatriate Services Division launched an SSM (Companies Commission of Malaysia) e-info update function in the ESD portal in April. Authorities said at the time that companies would be required to update their information beginning Aug. 1 and on an annual basis thereafter. The purpose of the annual updating requirement is to ensure that authorities are making decisions on employment pass applications based on the most recent company information.

BAL Analysis: Companies should take note of the change and prepare to update the information in their ESD account. Companies should also note that the MYXpats Centre may use the e-updates to track companies’ business profiles and that companies should expect additional requests for information or documentation to support their business presence in Malaysia.

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 © 2017 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 – MEDIUM

What is the change? Malaysia’s e-visa program is now available for business travelers. The program covers nationals of 10 countries – Bangladesh, Bhutan, China, India, Montenegro, Myanmar, Nepal, Pakistan, Serbia and Sri Lanka.

What does the change mean? E-visas are valid for a single entry for 30 days. While they may be used for business purposes, travelers are advised that because the change is recent, there may be some uncertainty. Therefore, they should continue to apply for consular visas unless they are traveling on an urgent basis.

Implementation time frame: Ongoing.
Visas/permits affected: E-visas.
Who is affected: Nationals of the 10 countries covered by Malaysia’s e-visa program.
Business impact: Business travelers may use the e-visa for limited business activities.
Next steps: The e-visa application is online. Those applying for a business e-visa must select “e-VISA” –not “e-NTRI,” which is only for tourists.

Background: Recently, Malaysia confirmed that e-visas may be used by business travelers. Permitted activities on a business e-visa, as with a consular business visa, are limited to:

Visiting a current project site or factory floor for informational purposes with no hands-on work.
Attending contract discussions.
Attending seminars.
Auditing company accounts.
Journalism.
Factory inspections.
Carrying out investment opportunity surveys.
Sport competitions.

BAL Analysis: E-visas are often subject to greater scrutiny at Malaysia’s entry ports, and because the business e-visa is a recent change, applicants are advised that the safest option is to apply for a consular visa if possible and apply for an e-visa only for urgent travel.

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 © 2017 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 – MEDIUM

What is the change? The Malaysia Digital Economy Corporation has announced changes to employment pass salary and contract requirements.

What does the change mean? Effective Sept. 1, employment pass submissions to MDEC must adhere to the new criteria. The salary minimum for foreign nationals seeking Category 1 employment passes will be set at 10,000 ringgits (about US$2,340) per month. Category II pass holders will have to be paid between 5,000 and 9,999 ringgits per month. Category III pass holders will have a salary requirement of 3,000 to 4,999 ringgits per month. Contract requirements will also change so that Category I permit holders will be allowed to apply for passes valid for up to five years. Category II permit holders will have to have a contract valid for up to two years. MDEC is adopting the changes after the MYXpats Centre announced similar changes in April.

Implementation time frame: Sept. 1.
Visas/permits affected: Employment passes (categories I, II and III).
Who is affected: Companies under MSC or ICT status submitting employment pass applications to MDEC.
Impact on processing times: No impact expected.
Business impact: Employers may see increased costs to meet the new salary requirements.

Additional information: Malaysia’s MYXpats Centre announced a similar Employment Pass re-classification in April, and this week MDEC said that it will follow suit. The changes will be made Sept. 1:

Employment Pass Type	Requirement from Sept. 1	Contract Requirement	Requirement from Sept. 1
Category I (Expatriate)	RM 10,0000	Minimum of two years	Up to five years
Category II (Expatriate)	RM 5,000 – RM 9,999	Less than two years	Two years or less
Category III (Knowledge/ Skill Workers)	RM 3,000 – 4,999	Up to a year (renewable twice)	Up to a year (renewable twice)

MDEC indicated that all other requirements for submitting employment pass applications will remain unchanged unless further notice is provided.

BAL Analysis: MDEC’s changes to the salary requirements for employment pass holders are fairly significant, especially in Category 1, where the minimum salary will double to 10,000 ringgits per month. Employers who are affected should take note of the pending changes and budget accordingly.

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 © 2017 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 – MEDIUM

What is the change? The e-Xpats Service Centre has announced that it will close June 23-27 for the Hari Raya Aidil Fitri (Eid al-Fitr) holiday.

What does the change mean? The closures will affect filing deadlines. Companies should take note of the closure and plan accordingly.

Implementation time frame: June 23-27
Visas/permit affected: All e-Xpats Service Centre services.
Who is affected: Foreign nationals in Malaysia.
Business impact: Businesses may need to adjust their timelines because of the holiday closures.
Next steps: Employers and employees should lodge applications as soon as possible, and no later than the cutoff dates listed below if they need decisions before the holidays.

Background: In celebration of Hari Raya Aidil Fitri, the Muslim holiday marking the end of Ramadan, the e-Xpats Service Centre will be closed June 23-27, and work will resume June 28. Accordingly, the center has assigned filing dates for Stage 1 and Stage 2 applications.

Application Type	Filing Deadline for Decision Before Holidays
Stage 1 – Foreign Knowledge Workers for MSC Malaysia Status Companies and ICT Sector Companies	June 16
Stage 2 – Endorsement of Employment Pass, Dependent Pass, Other Related Passes and Services	May 26

Stage 2 applications received May 26 and later will be processed without original passports for security reasons. Applications filed without the original passport must include copies of the applicant’s passport, including the identity page, latest entry stamp, any pages containing current passes and visas, three empty pages and, for Indian nationals, the last page of the passport. Applicants must submit their original passports if applying for reissuance of an employment pass due to a change of positions within the same company.

BAL Analysis: Employers and employees should plan to submit any time-sensitive applications ahead of the holiday closure.

Global Practice group and our network provider located in Malaysia. For additional information, please contact your BAL attorney.

Copyright © 2017 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 – MEDIUM

What is the change? Malaysia’s Expatriate Services Division has launched an SSM (Companies Commission of Malaysia) e-info update function in the ESD portal for companies to update their e-info, and beginning Aug. 1 it will be mandatory for companies to update their e-info annually.

What does the change mean? The purpose of the annual updating requirement is to ensure that authorities are making their decisions on employment pass applications based on the most recent company information.

Implementation time frame: Aug. 1.
Visas/permit affected: Employment passes and professional visit passes.
Who is affected: ESD-registered companies.
Impact on processing times: Companies that fail to provide e-info updates annually may have their employment pass and professional visit pass applications put on hold.
Business impact: ESD-registered companies should plan to update their business information every year, as well as provide updates on any changes, including those to their address, financials, directors, shareholders or other details that affect their business profile.

Background: Currently, the MYXpats Centre manages the system manually and the system will notify companies if their information requires updates.

BAL Analysis: Companies should note that the MYXpats Centre may use the e-updates to track companies’ business profiles and that companies should expect additional requests for information or documentation to support their business presence in Malaysia.

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 © 2017 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.