Malaysian Digital Economy Corporation to Enhance eXpats System

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Executive Summary

On November 15, 2017, the Malaysian Digital Economy Corporation will launch an enhanced eXpats online system for MSC-Malaysia Status and Information Communication Technology Sector companies. The system will have faster processing times and improve overall user experience.

Enhancement of current eXpats system

A closer look

Effective November 15, 2017, the Malaysian Digital Economy Corporation (MDEC) will launch an enhanced eXpats online system that will apply to both MSC Malaysia Status and Information Communication Technology (ICT) sector companies. Features of the new system include:

• New processes and timelines. MDEC and the Immigration Department will approve applications for Employment Passes and other related passes within seven business days from the date a complete application is submitted and will endorse Passes within two business days from submission of original passports. This will result in faster processing times for Employment Pass and related pass applications as the approval process currently takes three to five business days, and the endorsement takes 14 to 21 business days.
• Expansion of services. MDEC will be processing applications for endorsement for ICT sector companies, which are currently processed by the Immigration Department directly.
• New payment process.  All MDEC charges and immigration fees will be required to be paid electronically. Bank draft, banker’s cheques and cashier’s orders will no longer be accepted.
• New MDEC charges. New MDEC charges, as below, will go into effect on November 15, 2017.

 

Services (New and Renewal)	Total Payable (inclusive 6% GST) for MSC Malaysia Status Companies	Total Payable (inclusive 6% GST) for ICT Sector Companies
Employment Pass (EP) (inclusive of Transfer of Endorsement (TOE) and Cancellation of Passes) Duration: up to three years	RM 2,120.00	RM 2,968.00
Dependant Pass (DP) and Social Visit Pass	RM 530.00	RM 530.00
Amendment of Approval Letter	RM 106.00	RM 106.00

 

Transition period guidelines

MSC Malaysia status and ICT sector companies should follow the below guidelines for applications during the transition period to the new system:Transition period guidelines

• Stage 1 - Approval stage:
  • New and on-hold applications. The submission deadline for Stage 1 via the current system is before midnight on November 10, 2017 to obtain a decision before November 15, 2017. If an application is on hold, all outstanding documentation must be submitted by the same deadline or the application will be cancelled. Any applications not filed prior to November 10, 2017 must be resubmitted via the new eXpats systems.
  • Incomplete applications. Incomplete applications received on November 10, 2017 will automatically be cancelled.
  • Validity of approvals. Stage 1 approval letters issued via the current eXpats system will only be valid until December 29, 2017.
  • Fragomen will work with employers and employees to submit Stage 1 applications prior to November 10, 2017, where possible.
• Stage 2 - Endorsement stage
  • Current system submission deadline. Stage 2 applications must be submitted no later than December 29, 2017 for applications approved before November 15, 2017.
  • Submission after deadline. Any application not submitted for endorsement by December 29, 2017 will be cancelled automatically, and a new application must be submitted via the new eXpats system beginning January 2, 2018.
• Current system accessibility. MDEC will perform data migration activity from November 11 through November 14, 2017, during which time eXpats system will not be accessible. The system will reopen on November 15, 2017.

 

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].