Here are Malaysia’s statutory updates for 2024.
Effective October 2024
Salary Ceiling Increases for SOCSO and EIS Contributions
The Employees’ Social Security (Amendment) Act of 2024 and the Employment Insurance System (Amendment) Act of 2024 have been amended in accordance with the 2024 Budget plan to increase the monthly wage cap for PERKESO contributions from RM5,000 to RM6,000.
Employee contributions above RM6,000 per month will be capped at the new wage ceiling of RM6,000 as of October 1, 2024. This modification has been reflected in the contribution rate tables.
Source: PERKESO
Introduction of Interim Endorsement Slips and Cancellation of Dormant Applications
Holders of long-term passes approved by the Expatriate Services Division (ESD) and the Malaysian Digital Economy Corporation (MDEC) will now receive interim endorsement slips. When used in conjunction with a passport for both domestic and international travel, the interim endorsement slips—which are accepted for official use in English and Bahasa—act as temporary substitutes for long-term pass stickers.
Any dormant applications that are not resubmitted within ninety days will be immediately cancelled by the MYXpats Centre starting October 1. Authorities will not process any refunds on the processing fees for cancelled applications; nevertheless, companies will receive notification emails at multiple stages before the cancellation occurs.
Source: BAL
Online Submission for MyFutureJobs Hiring Outcome Report
It is now able to submit it through the site, saving time as the labour market testing processes are integrated, instead of the previous requirement of sending it by email to the MyFuture Jobs officer.
Source: Fragomen
Effective September 2024
Increased Visa Filling Fees
The following visa filing fees are increased:
- Employment Pass, MYR 2,000 (up from MYR 800)
- Dependent Pass, MYR 500 (up from MYR 450)
- Long-term Social Visit Pass, MYR 500 (up from MYR 450)
- Professional Visit Pass, MYR 1,200 (up from MYR 800)
New services including Transfer of Endorsement (with a filing fee of MYR 150) and Cancellation of Passes and Special Passes will be offered by Malaysia’s MYXpats Centre. Government and public university applicants will not be required to pay any fees.
Source: Fragomen
Effective August 2024
Reduced Documentation for Professional Visit Pass (PVP) Applications
The required documentation has been reduced from 13 items to just 6 essential documents, making it easier than ever to bring in top talent.
- Copy of Passport
- Application Letter from Sponsor
- Personal / Security Bond
- Letter of Award (LOA) / Contract [if applicable]
- Memorandum of Understanding (MoU) [if applicable]
- Supporting documents for certain industries
Source: ESD
New ESD Online Application Process
The Expatriate Services Division (ESD) system now allows the following to be done online:
- Amendment of an approved application
- Shorten of pass
- Cancellation of application
- Transfer of endorsement/take-up balance
- Permission to study
- Permission to work at a second location
This time frame is down from the previous 3-5 business day processing time via in-person filing.
Source: BAL
Effective July 2024
More Support for Endorsement of Authorised Passes
While previously this was restricted to passengers landing at KLIA1, eligible applicants may now complete the endorsement process of their authorised passes through the Expatriate Services Division (ESD) Satellite Centre (ESC) at the Kuala Lumpur International Airport Terminal KLIA2.
Source: Fragomen
Additional Immigration-Related Applications for Companies Under the Expatriate Services Division Can Now Be Filed Online
With effect from July 1, 2024, businesses falling under the jurisdiction of the Expatriate Services Division (ESD) and sponsoring foreign nationals will have to use the ESD online platform for any further immigration-related applications.
These applications may include changes to previously approved applications, pass cancellations or shortenings, endorsement and take-up balance transfers, authorisation to study, and work at a different location. To use the online filing system, firms are now only required by the ESD to file applications for Employment Passes, Professional Visit Passes, Dependent’s Passes, and Long-Term Social Visit Passes.
The ESD’s extension of the online filing system enables businesses to electronically file more applications, eliminating the requirement for laborious in-person submissions at the Malaysian Immigration Department.
Source: ESD
SOCSO Invalidity Scheme is now Mandatory for Foreign Employees
the Social Security Organization (SOCSO) has issued Circular No. 2 of 2024, dated July 01, 2024, providing that foreign workers will be mandatorily covered under the Invalidity Scheme of SOCSO.
| Monthly contribution rate | Contributor | Contribution rate for employment injury scheme | Contribution rate for invalidity scheme |
| Employer | 1.25% | 0.50% | |
| Foreign employee | – | 0.50% |
Source: PERKESO
Effective June 2024
More Foreign Nationals are eligible for Autogate Entry
Nationals from 63 countries can now use the autogate entry at Malaysian airports if they register for a Malaysia Digital Arrival Card (MDAC) at least three days before travel. This follows two recent programme expansions, which were introduced in January 2024. The autogate system enables travellers to scan their passports and pass through an automated gate for immigration clearance.
Countries: Albania, Andorra, Armenia, Australia, Austria, Azerbaijan, Bahrain, Belarus, Belgium, Bosnia and Herzegovina, Brunei, Bulgaria, Canada, Mainland China, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Georgia, Greece, Hong Kong SAR, Hungary, Iceland, Ireland, Italy, Japan, Jordan, Korea, Kuwait, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Moldova, Netherlands, North Macedonia, Norway, New Zealand, Oman, Poland, Portugal, Qatar, Romania, Russia, San Marino, Saudi Arabia, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, Taiwan, Türkiye, Ukraine, the United Arab Emirates, the United Kingdom, and the United States.
Source: Fragomen
Pre-approval is required for Initial Professional Visit Pass Applications
Effective April 2024
EP Applications must be Submitted through the Xpats Gateway
Effective April 24, 2024, all new and renewal applications for Malaysian employment pass (EP) must be submitted through the Xpats Gateway system for Malaysia Digital Economy Corporation (MDEC) registered companies.
Employers are advised to use their existing MDEC Expats system login credentials to access the Xpats Gateway platform.
The transition to the Xpats Gateway system is expected to improve processing times for employment pass applications, benefiting both employers and prospective employees.
Source: MDEC
Effective March 2024
Service Tax Increase on Digital Services
More info: https://eosglobalexpansion.com/malaysias-service-tax-increase/
