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      In this GMS Flash Alert we discuss some recent immigration-related developments in Malaysia.

      Companies with operations located in Peninsular Malaysia may now apply for pre-approval from the Department of Labour Peninsular Malaysia for hiring expatriate employees under the Employment Pass (“EP”) or bringing in temporary expertise under the Professional Visit Pass (“PVP”) directly via the Xpats Gateway portal.

      Companies, if found to be in breach of compliance requirements related to immigration applications, would need to serve a cooling-off period for six months.

      WHY THIS MATTERS

      Pre-requisite approval from the Department of Labour Peninsular Malaysia and Social Security Organisation (“SOCSO”) related to the hiring of expatriates can now be submitted via Xpats Gateway, which issues decisions electronically via the platform, enhancing efficiency given the single-point submission and timely processing related to those pre-approval requests.

      The cooling-off period is in response to a concerning rise in non-compliant submissions.  Imposed by the Expatriate Services Division (“ESD”), the cooling-off period gives non-compliant companies the opportunity to better understand where/what in the process went awry and whether the company can redress the situation following an assessment by the Authority.

      More Details

      1.    Enhancement of Xpats Gateway to End-to-End Single-Window Platform1

      The Xpats Gateway applications portal, which is an end-to-end single-window platform, on-boarded the Department of Labour Peninsular Malaysia and SOCSO on 1 July 2025.

      The process for companies to apply for pre-approval from the Department of Labour Peninsular Malaysia for hiring expatriate employees under the Employment Pass (“EP”) or bringing in temporary expertise under the Professional Visit Pass (“PVP”) and applying the acknowledgement of MYFutureJobs advertisement details from SOCSO for expatriate positions requiring posting via the Xpats Gateway portal, is fairly new.

      2.    Cooling-Off Period2

      The cooling-off period would apply to the following offences, but not limited to:

      • Submission of false reports or statements;

      • Falsification or misrepresentation of information;

      • Use of forged or fraudulent documents;

      • Any other form of misuse or abuse of the ESD system.

      During the cooling-off period, the ESD will conduct a comprehensive review of the company’s compliance track record, governance practices, and overall integrity.  At the end of the review, the company’s eligibility to resume application activities will be reassessed based on the outcome of the compliance review.

      The ESD may take further action if serious or repeated breaches are identified.

      KPMG INSIGHTS

      By consolidating relevant applications (prior to applying for the expatriate’s work pass) onto a single-window platform, the process becomes faster and more efficient.  Corporate information – which is commonly required in most applications – can now be auto-populated in all the applications instead of inputting the same data for each application.  This further streamlines the user’s experience.  Hence, it is mandatory to have all necessary approvals in place for a complete work pass application to be submitted to the Immigration Department for approval.

      The implementation of a cooling-off period by the ESD gives companies the opportunity to exercise due diligence and practice high standards of accuracy, transparency, and honesty in their submissions.  Companies may wish to review their existing application processes and internal controls to help ensure full compliance with ESD requirements.  Companies’ cooperation and integrity are vital to maintaining the credibility and effectiveness of the ESD system and fostering the continued effectiveness of Malaysia’s expatriate services “eco-system.”   

      Contacts

      yen-ping-long
      Yenping Long

      Partner, Global Mobility Services

      KPMG in Malaysia

      michelle-foo
      Michelle Foo

      Associate Director

      KPMG in Malaysia

      nur-aliaatul-shahira-mohamad-naguib
      Nur Aliaatul Shahira Mohamad Naguib

      Immigration Manager

      KPMG in Malaysia

      More Information

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      Disclaimer

      * Please note the KPMG International member firm in the United States does not provide immigration or labour law services. However, KPMG Law LLP in Canada can assist clients with U.S. immigration matters.

      The information contained in this newsletter was submitted by the KPMG International member firm in Malayasia.

      GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

      © 2025 KPMG Tax Services Sdn Bhd, a company incorporated under Malaysian law and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.