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23 June 2026

Malaysia introduces stricter Foreign Knowledge Worker headcount approval process and documentation requirements

The Malaysia Digital Economy Corporation (MDEC) has revised the process for Foreign Knowledge Worker (FKW) headcount declarations effective 1 June 2026, with further procedural changes from 3 June 2026. Under the updated framework, companies must undergo a formal evaluation process for headcount approvals and submit additional supporting documentation prior to filing individual applications. These changes affect MDEC-registered companies sponsoring expatriates holding Employment Passes (EP). The revised process is a resurrection of the FKW application process before the streamlined model introduced in 2024, but with a slight change to include supporting documents aligned with broader updates to Malaysia's revised expatriate salary and EP policy framework taking effect in June 2026.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.

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Attachment

Full text of Tax Alert

Document ID: 2026-1345

 
 

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