Malaysia Digital Economy Corporation (MDEC) has issued an important circular to all companies managing expatriate applications through its Expats system. The announcement, addressed to valued clients of the Expats Service Centre, outlines two significant operational changes that take effect in late May and early June 2026 — both directly linked to Malaysia's broader rollout of the revised Expatriate Salary and Employment Pass Policy.

Companies that regularly submit applications through the MDEC Expats system — particularly those in the technology, digital economy, and MSC Malaysia sectors — need to plan around these changes immediately.

Update 1 — FKW Headcount Declaration Discontinued

With immediate effect from 25 May 2026, the existing FKW Headcount Declaration request function in the MDEC Expats System has been discontinued.

FKW (Foreigners Knowledge Worker) headcount refers to the approved quota of foreign workers that a company is permitted to employ under MDEC's oversight. The declaration process was previously used by companies to register and manage this quota within the system.

In practical terms, if your company still has an approved FKW quota in the system, you can continue using it for individual applications. However, if you need to increase or renew your headcount allocation, you will need to go through the new evaluation process once it is active from 3 June 2026 onwards.

Update 2 — Scheduled System Maintenance: 1–2 June 2026

The MDEC Expats system will be taken offline for scheduled maintenance in preparation for the revised Expatriate Employment Pass policy rollout. The maintenance window is as follows:

MDEC has advised all companies to review their application planning and manage any intended submissions ahead of the downtime window. This is particularly important for companies with time-sensitive applications — for example, staff whose current passes are expiring in early June, or new hires due to start in the first week of June.

What This Means in the Bigger Picture

Both of these changes are preparatory steps ahead of the full implementation of Malaysia's revised Expatriate Salary and Employment Pass Policy, which takes effect on 1 June 2026 — the same date as the system maintenance begins. The timing is deliberate: MDEC is updating its backend infrastructure to accommodate the new salary thresholds, headcount evaluation criteria, and succession planning requirements introduced under the revised policy.

MDEC has confirmed that further guidance — including a final checklist for applications under the revised policy and projection requests — will be shared in a subsequent announcement.

Action Checklist for Companies

• If you have pending applications to submit, aim to do so before 1 June 2026 to avoid the downtime window
• Check your current FKW headcount balance in the system — if your quota is running low, note that the new request process applies from 3 June 2026
• For staff with passes expiring in early June, initiate renewal applications before the maintenance window or be prepared to submit on 3 June
• Ensure all applications submitted under the old policy are completed before 1 June — applications filed on or after 3 June will be assessed under the new salary thresholds
• Monitor MDEC's official Expats portal for the follow-up announcement on the revised policy checklist