Malaysia Eases Employment Pass Rules for Foreign Workers

Malaysia has introduced significant updates to its Employment Pass (EP) regulations, effective January 1, 2025, aimed at streamlining the application process and enhancing compliance for foreign workers.

Key Changes:

1. Category Change Procedure:
   • Employers are now required to cancel an existing Employment Pass before applying for a change in category. Additionally, a "change of category letter" must be submitted as part of the application process.
2. Fee Adjustments:
   • The fee for an Employment Pass has increased from MYR 800 to MYR 2,000. Similarly, the Dependant Pass fee has risen from MYR 450 to MYR 500. Other visa categories, such as the Professional Visit Pass and Long-Term Social Visit Pass, have also experienced fee adjustments.

Implications:

• For Employers:
  • The new procedures necessitate careful planning to ensure compliance with the updated requirements, particularly when changing an employee's EP category.
  • The increased fees may impact budgeting and financial planning for companies employing foreign workers.
• For Foreign Workers:
  • The cancellation of existing EPs before applying for a category change may lead to temporary employment gaps, requiring coordination between employers and employees to manage transitions smoothly.
  • The higher fees could affect the overall cost of employment for foreign workers.

These updates reflect Malaysia's efforts to enhance the efficiency and transparency of its employment pass system, ensuring that both employers and foreign workers are well-informed and prepared for the changes.