Effective 3 June 2026, the Malaysia Digital Economy Corporation (MDEC) has implemented major changes to the Foreign Knowledge Worker (FKW) headcount approval process and introduced additional documentation requirements for Employment Pass (EP) applications under the eXpats system.
These changes affect all companies operating under the Malaysia Digital (MD) framework and those using MDEC's expatriate services platform. Employers who have not yet reviewed their FKW headcount position should do so immediately, as the new process introduces an additional approval gate before any individual EP application can proceed.
Important: FKW quota requests are no longer automatically or instantly approved upon submission. All new or additional headcount requests now go through a formal review committee with a 14-working-day processing charter time.
Part 1 — New FKW Projection Request Process
What Has Changed
Under the previous system, companies could obtain FKW headcount approval relatively quickly. From 3 June 2026, any company wishing to hire new or additional foreign knowledge workers must first submit an FKW Projection Request through the eXpats system — before submitting any individual EP application.
| Step | New Process (from 3 June 2026) |
|---|---|
| 1 | Company submits FKW Projection Request with all mandatory supporting documents via eXpats |
| 2 | MDEC assesses the request against revised policy requirements |
| 3 | Application reviewed by the FKW Approval Committee |
| 4 | Company notified of outcome through eXpats |
| Charter time | 14 working days from receipt of complete documents |
Impact on Hiring Timelines
This new pre-approval stage means that companies can no longer initiate an individual EP application until their FKW headcount request has been approved. The practical implications are significant:
- Companies must plan expatriate hiring further in advance to absorb the additional 14-working-day headcount approval period before the EP application clock even starts
- Failure to secure approved headcount in time will delay foreign employee onboarding
- Recruitment timelines and offer-letter processes may need to be reviewed to align with the new two-stage workflow
Our recommendation: Companies with active or anticipated expatriate hiring should submit their FKW Projection Requests as early as possible — ideally ahead of any formal offer being extended to a candidate. Do not wait until a hire is confirmed before initiating the headcount request.
Part 2 — New Documentation Requirements for EP Applications
Separately, effective 1 June 2026, MDEC has introduced three additional requirements for FKW Individual Applications.
A. Succession Plan Information
Companies are now encouraged to submit information on their succession planning initiatives — specifically, how knowledge and expertise will be transferred to local employees over the expatriate's employment period.
While submission is currently encouraged rather than mandatory, this is preparation for the upcoming mandatory Succession Plan declaration effective 1 January 2027, in line with the Ministry of Home Affairs (KDN) directive. Companies should begin building these frameworks now to avoid a last-minute scramble at year-end.
B. Proof of Global Business Services (GBS) Operations
For Non-MD companies, applications tied to GBS-related activities now require documentary evidence that the company genuinely operates within the Global Business Services sector. Accepted documents include:
- Membership certificate from GBS Malaysia
- Membership certificate from the Contact Centre Association of Malaysia (CCAM)
- Other supporting documents deemed acceptable by MDEC on a case-by-case basis
C. Language Requirement Justification
Where a role requires native or near-native language proficiency, companies must now provide a written business justification covering:
- Why the language requirement is necessary for the specific role
- The operational need it serves
- The business impact if such language capability is not available locally
Justifications must be specific, commercially grounded, and clearly tied to the job scope — vague or generic explanations are unlikely to be accepted.
Reminder: Education Certificate Certification Requirements
MDEC has also reiterated its existing requirements for certifying educational qualifications submitted with EP applications. Certificates must be certified by one of the following:
- Malaysian Embassy, High Commission, or Consulate General in the country where the qualification was obtained
- The respective foreign country's embassy in Malaysia
- A Commissioner for Oaths (for applicants who studied overseas)
This certification requirement applies to educational certificates only. Other personal documents such as marriage certificates and birth certificates remain subject to their own separate certification requirements.
What Employers Should Do Now
- Review current and projected expatriate workforce requirements immediately
- Submit FKW Projection Requests as early as possible — do not wait until a hire is in progress
- Gather all supporting documents before initiating submissions to avoid processing delays
- For language-dependent roles, prepare detailed business justifications now
- Begin developing succession planning documentation ahead of the mandatory 2027 deadline
- Verify that all educational certificates are properly certified before submission
- For Non-MD companies in GBS, secure the necessary membership certificates from GBS Malaysia or CCAM
How MYVISA PATHWAY can help: Our team is closely tracking all MDEC regulatory updates. We assist companies with FKW headcount assessment, Projection Request preparation and submission, EP application support, succession plan advisory, language justification drafting, and supporting document review. Contact us today to discuss your current expatriate pipeline.