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IMPACT – MEDIUM
What is the change? Malaysian authorities have announced changes to employment pass salary and contract requirements.
What does the change mean? Effective Sept. 1, the salary requirement for foreign nationals seeking Category 1 employment passes will double to 10,000 ringgits (about US$2,250) 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 holder will have to have a contract valid for up to two years.
Background: Malaysia’s MYXpats Centre announced Saturday that the following changes would be made to the Work Pass Program beginning Sept. 1:
Companies that operate within a regulated sector must obtain an approval letter or support letter form the appropriate approving agencies or regulatory bodies. Final decision-making authority on employment pass applications rests with the Immigration Department of Malaysia.
BAL Analysis: The changes to the salary requirements for employment pass holders are fairly significant, especially in Category 1, where the salary will double to 10,000 ringgits per month. Employers 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.
What is the change? Authorities in the state of Sarawak have announced that they will no longer accept submissions by third parties, such as immigration agents working on behalf of companies, beginning April 15.
What does the change mean? Employers will be required to file applications with immigration authorities themselves and will not be able to use third parties. Employers will be allowed to send a representative from within their company to submit filings, but only if they are unable to do so themselves and provide a letter stating that the representative is acting on the company’s behalf.
Background: Authorities made the announcement last week and said the change is being made to hold employers more responsible for their filings. Immigration agents in Sarawak continue to seek information about the policy shift, but barring any reversal, third-party filings will not be accepted beginning April 15.
BAL Analysis: Companies should take note of the change and adjust their schedules accordingly. Immigration agents continue to engage with the officials for alternatives to a ban on third-party representation. BAL will update clients on any changes or developments from these discussions.
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.
What is the change? Following the murder of Kim Jong-nam, the half-brother of North Korea leader Kim Jong-un at Kuala Lumpur Airport, Malaysia has announced that it will cancel its visa waiver for North Korean travelers beginning today.
What does the change mean? North Koreans will be required to apply for and obtain a visa prior to travel to Malaysia.
Background: Malaysian police have reportedly identified several North Korean nationals involved in the killing, including an embassy official, and deported three other North Korean nationals on Friday. On Saturday, Malaysia expelled North Korea’s ambassador. Malaysia has also increased border checks in search of the suspects.
BAL Analysis: The incident has created a rift between two countries that have longstanding economic ties. The cancellation of the visa waiver will add to visa processing for North Korean nationals traveling to Malaysia. As visa waivers are reciprocal agreements, North Korea may cancel its visa waiver for Malaysian nationals in response.
What is the change? Malaysian authorities are strictly enforcing a rule requiring foreigners holding new passports to take steps to transfer their employment passes and other passes to their new passports.
What does the change mean? Foreign nationals who obtain a new passport should observe “transfer of endorsement” rules to avoid delays while entering or exiting the country.
Background: As BAL has reported, foreign nationals who hold employment or dependent passes must transfer their passes to their new passports as soon as the passport is issued. BAL has seen a recent uptick in the enforcement of this rule. Foreign nationals who are subject to entry visa requirements may be forced to apply for a visa if they leave Malaysia before they transfer their pass to their new passport. Expired passports must be canceled or annulled before authorities will transfer passes or permits to new passports.
BAL Analysis: Foreign nationals should be aware of the recent enforcement effort and be sure to transfer their employment passes and dependent passes to a new passport as soon as it is issued.
What is the change? Authorities have announced that foreign nationals applying for employment or dependent passes in the information, communication and technology (ICT) sector must upload supporting documents online.
What does the change mean? Effective immediately, photographs, employment contracts and other supporting documents must be uploaded to Malaysia Digital Economy Corporation’s ICT portal. The checklist of supporting documents is available at this e-Xpats Service Centre website.
Background: In January, the e-Xpats Service Center announced that supporting-document requirements would change for permit applications in the ICT sector. Authorities have now said that while the list of required supporting documents will not change, the documents that are required must be uploaded online. Hard copies will not be accepted unless specifically requested by MDEC. Authorities may also ask for additional documents, including hard copies, on a case-by-case basis.
BAL Analysis: Employers and foreign nationals applying for employment or dependent passes in the ICT sector should make sure they comply with the new rules on supporting documents. Applications that do not have the proper supporting documents could face delayed processing.
What is the change? Authorities have announced that they will soon make changes to the supporting document requirements for foreign nationals applying for employment or dependent passes in the information, communication and technology (ICT) sector.
What does the change mean? Effective Jan. 23, the supporting document requirements will change. The checklist of supporting documents is not yet available, but is expected to be posted to this eXpats Service Centre website no later than Jan. 23.
Background: The eXpats Service Centre announced this week that its checklist of supporting documents for permit applications in the ICT sector would change Jan. 23. That new list has not yet been posted, but is expected to be updated soon. The center also said that beginning Jan. 23, applicants will be required to upload photos of themselves as part of their application. Hard-copy photos will no longer be accepted.
BAL Analysis: Employers and foreign nationals applying for employment or dependent passes in the ICT sector on or after Jan. 23 should check the new checklist to make sure they have complied with the new rules on supporting documents. Applications that do not have proper supporting documents will face delayed processing.
What is the change? Officials have announced changes to Malaysia’s Residence Pass-Talent (RP-T), which provides qualifying foreign nationals with 10-year permits to work and reside in Malaysia.
What does the change mean? Beginning Feb. 1, all Residence Pass-Talent (RP-T) applications will be processed at the Malaysia Expatriate Talent Service Centre (MYXpats Centre) in Petaling Jaya. Minimum salary requirements and processing fees will also increase.
Background: The RP-T was introduced in 2011 and allows eligible foreign nationals to reside and work in Malaysia for 10 years. RP-T holders are allowed to switch employers at will. RP-T dependent passes are available for spouses and children under 18; children ages 18 and up may apply for and obtain long-term social passes.
Beginning Feb. 1, all applications will be processed at the MYXpats Centre in the Surian Tower, Petaling Jaya, Selangor.
Minimum salary requirements will increase to 15,000 Malaysian ringgits (about US$3,361) per month. The change, from the current monthly minimum of 12,000 ringgits, is an increase of 25 percent. Fees will also increase as follows:
Online applications must be submitted through this TalentCorp website once the changeover occurs. The current site will continue to be used through Jan. 31.
BAL Analysis: The change should streamline processing of RP-T applications. While the higher salary threshold will make qualifying for the program more difficult, the program remains a good option for qualifying foreign nationals looking for long-term work and residence opportunities in Malaysia.
What is the change? The Malaysia Digital Economy Corp. (MDEC) and Malaysia Expatriate Talent Service Centre (MYXpats Centre) have begun accepting projections from companies on their 2017 needs for foreign knowledge workers. Additionally, companies registered with the Expatriate Services Division (ESD), including those with MSC and ICT status, must now also submit 2017 projections for professional visit passes.
What does the change mean? Companies in Malaysia should begin submitting their requests for foreign workers for 2017 to avoid delays in approvals of securing new projections.
Background: MDEC began receiving the requests starting on Dec. 7. MYXpats Centre began receiving them from ESD-registered companies starting Dec. 5.
Additionally, MYXpats Centre has introduced a new requirement that ESD-registered companies request projections for the number of professional visit passes they plan to apply for in 2017.
BAL Analysis: Companies should submit their foreign-worker projections for 2017 as early as possible and well before the end of the year if they intend to apply for employment passes or professional visit passes by the beginning of 2017. Companies expecting to hire large numbers of foreign workers should also anticipate delays if they are asked to submit additional documentation to support their requests for foreign workers.
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.
What is the change? Authorities have begun requiring oil and gas companies to obtain preapproval from the Chief Minister’s Department (JKM) when filing employment pass applications in Sabah.
What does the change mean? The change went into effect without a formal announcement and adds one to two months to end-to-end processing times. The new preapproval requirement applies to both onshore and offshore oil and gas workers.
Background: Similar preapproval requirements were introduced earlier this year for oil and gas companies applying for employment passes for offshore workers from West Malaysia and Sarawak. The additional change adds to the time it will take to obtain employment passes for all oil and gas applications in Sabah. Pending applications will be put on hold until letters from the JKM are produced. BAL Analysis: Affected businesses should take notes of the change and adjust timelines and start dates if necessary. Those with pending applications must obtain JKM letters for pending employment pass applications to be processed.
What is the change? Authorities have imposed job advertisement requirements on all employers submitting employment pass applications in the state of Sarawak. Previous exemptions for company shareholders, specialists and rotational workers no longer apply.
What does the change mean? Employers must advertise job openings in a local or national newspaper and on Jobs Malaysia for three days and offer a 21-day window for local candidates to apply before submitting employment pass applications in Sarawak.
Background: Company shareholders, specialists and rotational workers were previously exempt from job advertisement requirements in Sarawak. Authorities ended the exemption for companies in all sectors, however, after a temporary moratorium on employment pass applications for oil and gas companies was lifted in August. The change does not apply to professional visit pass applications, which remain exempt from job advertisement requirements.
BAL Analysis: The new rules will prolong the employment pass application process for employers submitting applications in categories that were previously exempt. Companies should anticipate delays and can contact their BAL attorney for advice on the best options for moving employees to East Malaysia.
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