July 17, 2010

Effective 12 July, the Malaysian immigration authorities require a signed Letter of Undertaking in support of first time and renewal Employment Pass applications for those earning salary (excluding allowances) of 8000MYR (ringgits) or over per month (8000MYR = approximately $2495USD or €1930EUR).

What is the Letter of Undertaking?

The Letter of Undertaking is a document, signed by a company director of the Malaysian sponsoring entity, in which the employer undertakes to pay the employee the salary stated on the application, with the understanding that, should the immigration authorities find that the salary figure submitted is false, they will have the right to terminate the Employment Pass with immediate effect and penalize the sponsoring entity.   Penalties for non-compliance in this regard include fines of up to 10000MYR plus imprisonment for up to five years for the signing director.

Pro-Link GLOBAL will provide sample template Letters of Understanding to our clients for all applications.

Additionally, it should be noted that the original employment contract between the foreign national employee/assignee and the Malaysian sponsoring entity must be stamped with the company stamp before being submitted to the immigration department.

Benefits of the Letter of Undertaking

It is Pro-Link GLOBAL’s understanding that the applications submitted for employees earning over 8000MYR will be prioritized, with the first step of the application (the pre-approval application) being processed within seven business days.  Current processing time for the first step is seven to ten business days.

ACTION ITEMS FOR EMPLOYERS

  • Note that a company director of the sponsoring Malaysian entity will be required to sign Letters of Undertaking.  Pro-Link GLOBAL will provide sample Letters of Undertaking for all current and future cases.

Caveat Lector | Warning to Reader 

This is provided as informational only and does not substitute for actual legal advice based on the specific circumstances of a matter. Readers are reminded that Immigration laws are fluid and can change a moment’s notice without any warning. Please reach out to your local Pro-Link GLOBAL specialist should you require any additional clarification.

Pro-Link GLOBAL worked with pur PLG|KGNM correspondent office in Malaysia to provide this Global BRIEF alert to you.