Malaysia updates process for getting initial approval on hiring foreign workers: Key updates

The modules on the system have been improved, and new functions have been added for upgrade to ePPAx system's multi-tiered levy (MTL).

The Department of Labour Peninsular Malaysia (JTKSM) has enhanced the initial approval process for hiring foreign workers under Section 60K of the Employment Act 1955, with improvements made to the ePPAx system.

The upgraded modules and functions went live on 2 December 2024.

Below are the key updates:

1. Section 60K of the Employment Act 1955 [Act 265]
   • Effective 1 January 2023, this section mandates that employers obtain prior approval before hiring foreign workers. This applies to all non-citizen employees, as defined in Section 2 of Act 265.


2. Scope of Section 60K
   • Applicable only to the recruitment of new foreign workers.
   • Not applicable to the renewal of Employment Passes (EP), Temporary Employment Visit Pass (PLKS), or other passes.
   • Mandatory for all employers, including those with positions exempted from job vacancy advertisements by PERKESO.
   • Approval is granted to the employer only.


3. Application Process
   • All applications for prior approval must be submitted through the Integrated Foreign Workers Management System (ePPAx) at ePPAx Login.
   • For expatriates, the company may refer to the [Sub Module: Expatriate]
   • For foreign fishermen / foreign security guards / ship crew / residence pass holders / residence pass-talent (RP-T) holders / Student pass holders / Professional Visit Pass (PVP) / Professional Pass / Construction employers G1, G2, and G3, please refer to [Sub Module: Other Passes 1]


4. Special Requirement for Construction Sector Employers
   • Employers in the construction sector (contractors G4 to G7) must declare their construction project in the CIMS CIDB system before submitting their application in ePPAx. Project data will be integrated with the ePPAx system.


5. Approval Documents
   • For applications submitted through the ePPAx system, approval documents can be directly generated via the system on the application status check screen.


6. Validity Period
   • The validity period for Section 60K approval is 12 months for all categories of foreign workers or non-citizen employees managed by JTKSM, effective from 1 October 2024. This excludes approvals issued under the Special Employer Change Process (PTM Khas).

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