Corporate Immigration update — Malaysia Expatriate Exit Clearance & Pass Shortening Directive

Malaysia Expatriate Exit Clearance & Pass Shortening Directive

08 December 2025

Overview

Effective from 18 November 2025, the Malaysian Immigration Department, via the Expatriate Services Division (ESD), has made it mandatory for employers to process pass shortening or exit clearance for expatriates leaving Malaysia. This ensures that every expatriate departure is formally recorded in the Immigration system, and companies remain compliant when applying for future Employment Passes (EP) or Professional Visit Passes (PVP).

Who will be affected?

All companies employing expatriates in Malaysia, regardless of sector. This applies to Employment Pass (EP) and Professional Visit Pass (PVP) holders who are leaving Malaysia permanently or whose passes have expired. Expatriates leaving without proper pass shortening or exit clearance will affect the company’s ability to submit or pay for future applications.

Background

Previously, expatriate departures were often processed informally, with limited tracking in the Immigration system. To strengthen compliance and ensure accurate workforce data, we strongly believe the Immigration Department has introduced mandatory Pass Shortening and Exit Clearance procedures, applicable through the company’s respective registered immigration portals (ESD / MDEC / Xpats Gateway / XPATNOVA, where applicable):

• Pass Shortening: Reduces the validity of an expatriate’s pass before leaving Malaysia; the employer must download and provide the Shorten Pass Slip to the expatriate for travel.
• Exit Clearance: Required for expatriates whose pass has expired without renewal or shortening; companies must submit the clearance within 30 days of pass expiry to confirm departure.

This initiative helps ensure that expatriate records are updated, and companies remain compliant for future hiring.

Impact

Operational Impact

• Companies must include pass shortening or exit clearance in HR offboarding procedures.
• HR teams must ensure the Shorten Pass Slip is issued and exit clearance applications are submitted on time.

Compliance & Risk

• Failure to comply may result in restricted access to Immigration online portal, affecting the company’s ability to submit new expatriate applications or renew passes.
• Maintaining proper documentation is critical for audit and regulatory purposes.

Date of implementation

8 December 2025

Santa Fe recommendation

Santa Fe strongly recommends that employers implement the following measures to ensure full compliance with the latest Immigration requirements:

• Ensure all departing expatriates undergo the correct offboarding process, including Pass Shortening (before departure) or Exit Clearance (if the pass has expired), following the latest Immigration guidelines.
• Submit all Pass Shortening applications through the Immigration Portal. Santa Fe can assist with preparation, submission, and monitoring.
• Retain copies of all Shorten Pass Slips and Exit Clearance confirmations as part of your company’s compliance and audit records.
• Set internal reminders and workflows to ensure Exit Clearance is submitted within 30 days from the expatriate’s last working day or pass expiry, whichever is applicable.
• Be aware that non-compliance may result in Immigration penalties, including restricted access to the Immigration Portal, which may delay or block future EP or PVP applications.
• For further information, click here to view the ESD Exit Clearance FAQ.

Contact us

Please get in touch with us for further information or clarification:

Samson Poore
Immigration Manager — Malaysia
Santa Fe Relocation
+60 19 601 6900
samson.poore@santaferelo.com

Hema Jesani
Senior Manager Global Immigration
Santa Fe Relocation
Hema.Jesani@SantaFeRelo.com

About our Immigration Services

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