Malaysia implements instant approval of employer submitted expatriate projection applications

Effective 1 April, Malaysian employers that submit projection applications to the Expatriate Services Division (ESD) will receive instant approvals, provided they submit justifications for their projections and other relevant information (e.g., total number of local staff and foreign employees). Employers that submitted projection applications prior to 1 April but were awaiting a decision as of that date can submit a new application. Previously, projection applications were subject to stricter scrutiny, and employers were required to await the ESD’s approval before they could hire foreign nationals, which could take at least 10 working days.

A Tax Alert prepared by EY's People Advisory Services group, and attached below, provides additional details.