Malaysia: Foreign Knowledge Worker Projection Process Streamlined
June 5, 2024
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At a Glance
- The Malaysia Digital Economy Corporation (MDEC) now grants automatic approvals to applications for Foreign Knowledge Worker (FKW) projections, easing the FKW projection process.
- Employers can now immediately file Employment Pass (EP) applications after receiving the projection approval, avoiding the month-long wait for companies in other divisions.
- Companies that filed FKW headcount requests for applications submitted before June 4, 2024 that have not yet received a decision must re-submit their applications on the system due to the implementation of the new process.
The situation
The Malaysia Digital Economy Corporation (MDEC) is now granting automatic approvals for FKW headcount applications for Employment Pass (EP) after receiving the company’s required documents on the online MDEC.
A closer look
- Filing process. Under the new process, to file a FKW headcount application, companies need to log in to their MDEC account, select the "FKW headcount" option located in the "Manual" tab, and then choose the relevant projection year and click on the "New Projection" option to request a new projection. Companies must complete all mandatory fields, including the justification for the projection, the numbers of local and foreign staff.
- Resubmission of applications. Companies that filed FKW headcount requests for applications submitted before June 4, 2024 that have not yet received a decision must re-submit their applications on the system due to the implementation of the new process.
Impact
Companies under the MDEC benefit from the new FKW headcount process since they can now file for EP applications immediately after submitting their FKW headcount. Previously, these companies would have to submit more documents and await government approval, which can take up to one month, before they could file EP applications.
Background
The Malaysian government requires companies under MDEC and Expatriate Services Division (ESD) to submit FKW headcount applications to delineate the need of the company to hire foreign workers before they can apply for EP and Professional Visit Pass (PVP) applications. ESD processes both EP and PVP applications, while MDEC only handles EP applications.
Consistent with the streamlined approach in processing projection applications adopted by ESD in April 2023, the MDEC made a similar change to improve the efficiency in the foreign national hiring process as a response to feedback from companies about the lengthy processing times for FKW headcount applications.
Looking ahead
The Malaysian government will likely continue reviewing the EP and PVP application process and will likely introduce further changes to streamline the process, such as reducing requirements or speeding up processing times. We will publish relevant updates.
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].
