MALAYSIA: Reclassification of Employment Pass Categories

The Expatriate Services Division (ESD) now requires companies to update their information in the ESD online system annually, and also whenever there are any changes to the company’s information.

Effective 1st August 2017, the Expatriate Services Division (ESD) of the Immigration Department of Malaysia (MID) will not process Employment Pass applications based on company information which has not been updated in their system.

The ESD has also announced a reclassification of Employment Pass categories to take effect on 1st September 2017, including a higher salary threshold for EP I and EP III.

Company Information

Companies are now required to update their corporate information in the ESD online system annually, and also whenever the information changes.

This is done by the company purchasing the SSM (CCM in English – Companies Commission of Malaysia) e-info via the Company tab in the system. The SSM e-info provides full details of the company: address, business activities, shareholdings, directors and financials.  Once purchased, the information will be auto uploaded into the ESD system.

Besides updating the change electronically, the company will also be required to file copies of the relevant company forms, duly certified by SSM. Presently the documents must be filed manually at the ESD office in Putrajaya.

In future, these documents may be filed electronically when the system is set up for this purpose.

Employment Pass Reclassification

From 1st September 2017, the salary threshold to qualify for the EP I category of Employment Pass (EP) will increase from MYR 5000 (about USD 1100) to MYR 10000 (about USD 2200) per month. The applicant will be able to apply for an EP valid for a duration of up to five years, where currently the maximum duration is three years, with two years being the norm.

The EP II category will still be granted for up to two years, and the minimum salary for this category will remain at MYR 5000 per month.

The EP III salary threshold will increase from MYR 2500 to MYR 3000 per month, with no change in the maximum duration of one year with up to two renewals

Background

The Expatriate Services Division (ESD) of the Ministry of Home Affairs (MOHA) is one of the agencies which issue Employment Passes for foreign nationals in Malaysia. Malaysia Digital Economy Sdn Bhd (MDEC) processes Employment Passes for Information Communication Technology (ICT) companies and companies registered for Multimedia Super Corridor Malaysia (MSC Malaysia) status.

It is not clear whether MDEC will implement similar changes.

Our Advice

Companies in Malaysia employing foreign nationals should ensure that their company information in the ESD system is up to date to ensure Employment Pass applications are accepted, and should take into account the forthcoming reclassification of Employment Pass categories.

For advice and information regarding Malaysian immigration, please email us at enquiries@newlandchase.com.

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