With effect from 1 July 2025, companies that are found to be in breach of immigration compliance requirements in relation to expatriate applications will be imposed a six (6)-month cooling-off period by the Expatriate Services Division (ESD) of the Immigration Department of Malaysia. This measure is introduced in response to the rising number of non-compliant submissions by companies and is aligned with the Immigration Department of Malaysia’s commitment to safeguarding national security, maintaining regulatory integrity, and preserving public trust.
Under this new ruling, companies found to be non-compliant of immigration requirements will be suspended from submitting expatriate applications or appeals for a period of 6 months. The types of misconduct include, but are not limited to, the following:
During the cooling-off period, a comprehensive review of the company’s compliance history, governance framework, and overall integrity will be carried out by the authority.
Upon the completion of the cooling-off period, the company’s eligibility to resume immigration application activities will be re-evaluated based on the outcome of the compliance review. Should serious or recurrent breaches be identified, further actions may be taken by the immigration authority.
The Expats Service Centre of the Malaysian Digital Economy Corporation (MDEC) has yet to issue a similar announcement
With the introduction of this new requirement, the immigration authorities will conduct a more thorough review of applications. As such, it is imperative for companies to exercise heightened due diligence to ensure that all submissions are accurate, truthful and supported by genuine documentation in compliance with immigration regulations. A suspension of the company’s expatriate applications along with the possibility of more severe penalties could adversely impact workforce planning, disrupt business operations and pose reputational risks.
At Vialto Partners, we are well-positioned to provide guidance and support on the latest immigration requirements, ensuring full compliance with all relevant immigration regulations.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Sasha Reddy
Partner
Hana Rabi
Senior Manager
Kimberly Chong
Manager
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