Malaysia Employment Pass Applications Experiencing Processing Delays

Recently, we received an important update from the relevant Malaysian authority MDEC regarding the application status of Employment Pass (EP).

According to the official notice, as the increase in the minimum salary threshold for EP applications scheduled to take effect on June 1, 2026 approaches, the system is currently experiencing a surge of last-minute submissions.

MDEC is handling a significantly higher volume of EP applications than usual, which has resulted in longer overall processing times.

According to the official information:

• All EP applications are being accepted and processed normally and have entered the evaluation stage;
• Due to the sharp increase in application volume, processing times may temporarily exceed the standard service timeline;
• Authorities currently recommend that companies submit applications at least three months in advance to reduce compliance risks;
• Frequent follow-ups or repeated emails will not accelerate the approval process and may even affect overall processing efficiency.

This means that:

Applications submitted recently and those to be submitted in the coming months may experience noticeably longer approval times than before.

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Why Are Processing Times Increasing?

The primary reason lies in the policy transition period.

Starting June 1, 2026, the minimum salary threshold for Employment Pass applications will be officially increased. In order to complete applications before the new requirements take effect, many companies have rushed to submit their applications.

As a result, the system is experiencing a short-term surge in applications, a typical phenomenon often seen during policy transition windows.

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Impact on Businesses

Companies may face several potential impacts:

1️⃣ Greater uncertainty in approval timelines
2️⃣ Longer buffer time required for employee onboarding plans
3️⃣ Earlier preparation required for visa renewals
4️⃣ Reassessment of overseas assignment schedules

In particular, companies planning to deploy teams in Malaysia during Q2 2026 should carefully review and adjust their timelines.

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SmartDeer Recommendations

To reduce potential risks, we recommend the following actions:

✔ Submit renewal or new applications early (preferably at least three months in advance)
✔ Ensure complete and accurate documentation to minimize the risk of additional requests
✔ Avoid submitting applications close to visa expiration dates
✔ Review the expiration structure of existing expatriate visas
✔ Prepare temporary alternative workforce solutions if necessary

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SmartDeer Has Initiated a Monitoring Mechanism

In response to the current processing pressure, we have already:

• Maintained ongoing communication with the relevant authorities
• Closely monitored changes in approval timelines
• Assisted clients in optimizing application scheduling
• Provided priority planning recommendations for urgent projects

For clients who have already submitted applications or are planning to do so soon, we will continue to provide progress updates and risk alerts.

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Managing Workforce Planning Amid Policy Uncertainty

The extended processing time for Malaysia EP applications essentially reflects structural congestion caused by policy adjustments.

In an environment where global employment regulations are frequently evolving, companies require not only application capabilities but also effective timing and workforce planning strategies.

Early planning and allocating sufficient time buffers remain the most reliable approach at this stage.

If you need to evaluate upcoming EP applications or renewal arrangements, please feel free to contact the SmartDeer team. We will help you optimize both timeline planning and compliance strategies.

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About SmartDeer

SmartDeer is a leading global one-stop HR compliance platform, dedicated to helping companies manage international workforce operations.

Our services include:

• Cross-border employment compliance
• Employer of Record (EOR) / HRO services
• Global payroll management
• Visa and immigration support
• HR SaaS systems

With coverage across 200+ countries and regions, and wholly owned entities throughout Asia, North America, the Middle East, and Europe, SmartDeer provides secure, efficient, and compliant workforce solutions for companies expanding globally.

Whether you are hiring overseas employees or managing multi-country HR compliance, SmartDeer ensures your global business operations remain smooth and compliant.