Malaysia: Additional Approval or Registration Requirement for Companies Hiring Foreign Nationals Under MDEC
January 13, 2023
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At a Glance
- Starting February 1, 2023, companies hiring foreign nationals under the Malaysia Digital Economy Corporation (MDEC) will need to obtain an approval letter from the Department of Labour Peninsular Malaysia (JTKSM) or at least a proof of submission of registration at JTKSM when applying for Projection applications.
- Companies must register under the appropriate sector or industry with the JTKSM, specific to the immigration category of the foreign national they are seeking to hire.
- Companies who do not obtain the required approval or submit a registration will not be able to apply for Work Pass Projections which are required to apply for Work Passes for foreign nationals in Malaysia.
The situation
The Department of Labour Peninsular Malaysia (JTKSM) announced that companies hiring foreign nationals under the Malaysia Digital Economy Corporation (MDEC) will be required to obtain an approval letter or register online under the JTKSM when applying for Work Pass Projections (Projections) applications starting February 1, 2023.
A closer look
| CHANGE | DETAILS | IMPACT |
| Additional approval or registration requirement for Projection applicants |
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| Registration under specific sectors and industries |
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| Disclosure of certain employer and employee information |
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Background
- Employment Act 2022. The Malaysian government implemented the new Employment (Amendment) Act 2022 which came into force in January 1, 2023 and is aimed at protecting local labor in Malaysia.
- Additional requirement for Projections applications. Companies in Malaysia registered with the MDEC, who plan to submit initial or renewal Employment Pass (EP) applications in 2023, must obtain approvals for their foreign national number Projections before being able to apply.
Looking ahead
It is very likely that the Expatriate Services Division (ESD) will adopt a similar requirement for companies applying for Projection applications and is likely to follow the new requirement by the MDEC. Fragomen will report on related developments.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
