Immigration update: New requirements for Malaysia Employment of Expatriate and Foreign Knowledge Worker (FKW)

Background

In line with the latest amendment and enforcement of Section 60k of the Employment Act 1955, the Minister of Human Resource has announced that for employment of Expatriate / Foreign Knowledge Worker (FKW), companies are now required to first register with the Department of Labour Peninsular Malaysia (JTKSM).

Malaysia Digital Economy Corporation Sdn. Bhd (MDEC) has recently informed that effective from 1 February 2023, proof of submission or approval letter from JTKSM must be submitted upon submission of FKW projection and this is a mandatory document.

Impact

1. There is another layer being added into the FKW projection request and employment of expatriates in Malaysia.
2. There is no specific timeline given as of today on the duration or processing time required by JTKSM to process the registration and grant the approval.
3. No indication of the validity of the approval letter that will be issued by JTKSM for the employment expatriates.
4. The enforcement of Section 60K of the Employment Act 1955 covers all non-Malaysian citizen workers in the following categories:

• • Foreign workers – Temporary Employment Visit Pass (PLKS/TEVP) under the permitted sectors of manufacturing, services, plantation, agriculture, construction and the mining & quarrying sector.
  • Expatriates – Employment Pass (EP) holders
  • Foreign Security Guards
  • Permission to work passes – holders of Student Pass, Resident Pass, Malaysia My Second Home Program (MM2H) & Malaysia Premium Visa Program (PVIP)
  • Other Categories Passes – Foreign Fishermen, Ship Crew, Tomyam Cooks, Traditional Passes (Thai citizens in bordering states), Professional Visit Passes (religious teachers/artists/missionaries of other religions)
  • Foreign workers employed from shelters

Implementation date

1st February 2023

Santa Fe recommendation

• As this announcement is very new and as of to date, there is no official updates from MYXpats / Expatriate Services Division (ESD) on the requirements for FKW projection. However, we would recommend for companies that are under purview of ESD to still submit the application / register Expatriates with JTKSM.
• We strongly recommend that application / registration with JTKSM to be done as soon as possible to avoid any issue and implications later on in the FKW projection process or EP application process.
• As of now, no change to the current Employment Pass (EP) and Dependent Pass (DP) application with both MDEC and ESD, as to any additional proof or documents required from JTKSM upon submission of the application with MDEC or ESD.
• Seek guidance and assistance from your Santa Fe consultant on the application or registration of Expatriates with JTSKM.

For more information or assistance please contact:

Samson Poore
Immigration Manager – Malaysia
Santa Fe Relocation
Malaysia
D +60 3 5569 1856
M +60 19 601 6900
E: Samson.Poore@santaferelo.com

Robert Day
Group Head of Immigration Operations
Santa Fe Relocation
London, UK
D: +44 7990 021125
E: robert.day@santaferelo.com

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