Malaysia: Companies Must Submit 2023 Employment Pass and Professional Visit Pass Projections
October 18, 2022
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At a Glance
- Companies in Malaysia registered with the Expatriate Services Division (ESD) and the Malaysia Digital Economy Corporation Sdn. Bhd. (MDEC), who plan to submit Professional Visit Pass (PVP) and Employment Pass applications in 2023 are required to submit projections for the number of foreign nationals they wish to sponsor under PVPs as soon as possible.
- The ESD has started accepting projection applications and the MDEC will start accepting projection applications starting November 1, 2022.
- Although there is no deadline for submission, affected employers who do not have approved projections for 2023 cannot submit initial or renewal work pass applications until they obtain the required approval.
- Foreign nationals already in Malaysia may need to leave if their new work passes cannot be obtained prior to the expiry of the current one.
The situation
Companies in Malaysia registered with the Expatriate Services Division (ESD) and the Malaysian Digital Economy Corporation Sdn. Bhd. (MDEC), who plan to submit initial or renewal Professional Visit Pass (PVP) and Employment Pass (EP) applications in 2023 should submit their foreign national number projections as soon as possible to avoid delays.
A closer look
- Opening of submissions. The ESD is now accepting submissions and the MDEC will start accepting submissions starting November 1, 2022.
- 2022 number will no longer be valid. Companies will no longer be able to use approved PVP and EP projection numbers granted in 2022 for applications in 2023, even if there are unutilized numbers left.
- Processing timeline. The ESD and MDEC will process the projection applications within 10 to 20 business days from the date of submission of the application.
Impact
Companies that do not have approved projections for 2023 will not be able to submit initial and renewal PVP and EP applications until they obtain the required projection approval. Foreign nationals already in Malaysia under a PVP or EP may need to leave Malaysia if they cannot obtain a new work pass before their current one expires.
Background
- Work pass requirement. The Malaysian government requires companies to submit projection applications to sponsor PVP and EP applications to delineate the need of the company to hire foreign workers. Companies can submit the application throughout the year, if necessary.
- Discretionary approval. The projection application is assessed an approved at the discretion of the ESD and/or MDEC, based on the projection number and relevant justification submitted.
Looking ahead
Due to holiday closures and the expected high volume of projection applications, companies in Malaysia registered with the ESD and MDEC will likely encounter delays in the processing of projections and should make submissions as soon as possible.
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].
