Malaysia: Foreign Knowledge Worker Projection Requests Reintroduced

Effective May 25, 2026, the Malaysia Digital Economy Corporation (MDEC) has reinstated a review and approval process for Foreign Knowledge Worker (FKW) projection requests, eliminating the previous automatic process.

A closer look

• Discontinuation of Headcount Declaration function. The existing FKW Headcount Declaration request function was discontinued with immediate effect on May 25, 2026. Companies can continue utilizing any remaining approved FKW headcount currently available in the system for individual FKW applications.
• Evaluation required for new projection requests. Companies seeking new or additional FKW projections must now submit requests through MDEC's portal, with supporting documentation. Requests will be assessed by MDEC before approval is granted.
• Processing time. Projection approvals, per current information, are expected to take approximately two weeks, but may take closer to one month based on past processing times. Previously, the number of approved projections was subject to MDEC's discretion, which is expected to similarly be the case now.
• ESD process unchanged. At the time of publication, no similar changes have been announced by the Expatriate Services Division (ESD). Projection requests under ESD continue to receive immediate approval.

Impact

Companies operating under MDEC may face longer timelines, as new projection requests are no longer automatically approved and are instead subject to MDEC's review and assessment. Employers should anticipate foreign hiring needs well in advance, as obtaining projection approvals may take several weeks before Employment Pass applications can be filed.

Companies with upcoming hiring plans should review their current projection balances and submit additional projection requests as early as possible to avoid potential delays.

Background

Prior to 2024, companies were required to submit projection requests annually or whenever additional projections were needed. Projection approvals served as the quota allowing employers to file Employment Pass applications under MDEC. In 2024, MDEC streamlined the process by introducing automatic approvals, enabling employers to obtain projections instantly and proceed immediately with EP filings. The new announcement indicates a return to the earlier review-based process.

Looking ahead

The reintroduction of a review process for FKW projection requests may signal a broader effort by MDEC to manage application volumes and align foreign workforce approvals more closely with business needs. While ESD projection requests continue to receive instant approval, companies should monitor developments closely as ESD could adopt a similar review-based approach in the future. Fragomen will continue to monitor developments closely and provide updates as further guidance is issued or determinations are implemented.

 

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen.