Effective 21 October 2025, the Immigration Department of Malaysia has implemented a new Overstay Management Programme applicable to companies registered under the Expatriate Services Division (ESD) and Malaysia Digital Economy Corporation (MDEC).
Under the new Programme, Employment Pass holders (and dependents holding a pass tied to the principal holder) who have overstayed their pass by no more than 90 days will be compounded directly by the Immigration Department, without referral to the Enforcement Division, based on the number of days overstayed. Prior to this, generally, an overstay of more than 30 days would be referred to the Enforcement Division of the Immigration Department with potential compound action at the discretion of the authority.
Employment Pass holders and dependents holding a pass tied to the principal holder who have overstayed up to 90 days from the expiry of their last valid pass will be imposed with a compound action based on the number of days overstayed.
Below is a comparison between the previous practice and the new Programme:
|
Duration of overstay | Compound amount | |
| Prior to 21 October 2025 | 21 October 2025 onwards | |
| 1 – 30 days | Generally, no compound for overstay cases below 30 days | RM30 per day |
| 31 – 60 days | For overstay cases beyond 30 days, an assessment will be done on a case-by-case basis and a compound will be based on the discretion of the immigration authority | RM1,000 |
| 61 – 90 days | RM2,000 | |
Additionally, with this new Programme, the Special Pass applications for the following scenarios must be submitted at the Enforcement Division of the Immigration Department:
Special Pass applications that are submitted at the Enforcement Division require personal attendance by the foreign national and company representative. A compound action may be imposed by the Enforcement Division at their discretion after assessment of the overstay case.
To minimise exposure to overstay risks and compound action, companies are strongly encouraged to:
With the introduction of the Overstay Management Programme, audit related activities and other more stringent requirements from the Immigration Department, we are observing a stricter approach to the end-to-end expatriate management process by the Immigration Department, with an emphasis on compliance by employers and their expatriate employees whilst also aiming to streamline the entire process. As such, it is important for companies to continue to exercise due diligence and agility in their expatriate management process to remain compliant with the evolving immigration regulations and requirements in Malaysia.
Our team can support you in aligning your internal expatriate management processes with the recent developments, identify potential immigration risks and measures to mitigate such risk within your organisation.
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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