Malaysia: Opening of Projection Applications for Malaysia Digital Economy Corporation Companies
October 17, 2023
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At a Glance
- Companies in Malaysia registered with the Malaysia Digital Economy Corporation Sdn. Bhd. (MDEC), who plan to submit Employment Pass (EP) applications in 2024 are required to submit projections for the number of foreign nationals they seek to sponsor.
- MDEC will start accepting projection applications starting November 1, 2023.
- Although there is no deadline for submission, affected employers who do not have approved projections for 2024 cannot submit initial or renewal Employment 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 Malaysia Digital Economy Corporation Sdn. Bhd. (MDEC) who plan to submit initial or renewal Employment Pass (EP) applications in 2024 can submit their foreign national number projections starting November 1, 2023.
A closer look
- Processing timeline. The MDEC will process the projection applications within 20 business days from the date of submission of the application.
- 2023 number will no longer be valid. Companies will no longer be able to use approved EP projection numbers granted in 2023 for applications in 2024, even if there are unutilized numbers left. Companies that still require EP projections for 2023 can still submit the applications to the MDEC by November 15, 2023.
Impact
Companies that do not have approved projections for 2024 will not be able to submit initial and renewal EP applications until they obtain the required projection approval.
Foreign nationals already in Malaysia under an 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 EP applications to delineate the need of the company to hire foreign nationals. Companies can submit the application throughout the year, if necessary.
- Discretionary approval. The projection application is assessed and approved at the discretion of the 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 MDEC will likely encounter delays in the processing of projections and should submit their projection applications as soon as it is allowed.
The Expatriate Services Division (ESD) has not provided a date as to when the 2024 projection applications will be opened for submission, but we expect this to happen soon.
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].
