1) FKW Declaration Headcount New Process
Foreign Knowledge Worker (“FKW”) Projection Requests (commonly referred to as “headcount applications”) for companies regulated under the Malaysia Digital Economy Corporation (“MDEC”) are subject to a revised operational process effective 3 June 2026.
Previously, FKW projection applications were granted automatic approvals in 2024 where the employer could thereafter proceed directly with Employment Pass (“EP”) applications without delay.
In line with the Revised Expatriate Salary and EP policy, effective from 3 June 2026, companies intending to request new or additional Foreign Knowledge Worker (“FKW”) headcount are required to submit an FKW Projection Request via the eXpats system with complete mandatory supporting documents which will undergo further evaluation and approval under the revised process.
The supporting documents required are as follows:
- Tenancy Agreement/Sales and Purchase/Sub-tenancy Agreement (at least six months validity period) and stamped by LHDN.
- e-SSM search (the Company’s CCM profile) (latest six months).
- Latest Master Service Agreement (“MSA”)/Contract/PO/SOW/LOA (Not applicable for captive services).
- Latest certified true copy of company’s past years financial audited report and/or management account (year to date).
- Excel Template — FKW Projection.
- Latest EPF statement (Form A) and receipt of payment (latest one month).
- For NEW FKW application only — Registration and Approval Letter from Social Security Organization (“SOCSO”) (unless exemption applies).
Upon submission, MDEC will verify and assess the application based on the supporting documents provided. Thereafter, the request will be presented to the approval committee for its decision.
The processing time for the FKW projection request is 14 working days. Companies will be notified via the system on the outcome of the request by the FKW Approval Committee.
Once the projection process is completed, the company may commence with the utilisation of the approved quota and corresponding FKW application submissions.
This marks a significant departure from the previous automatic approval mechanism whereby FKW Projection Requests were approved instantly. Under the revised framework, approvals are subject to assessment of the FKW Approval Committee.
In light of the above, companies are advised to:
- Plan expatriate hiring requirements well in advance;
- Submit FKW Projection Requests early to accommodate processing timelines;
- Ensure sufficient approved headcount prior to initiating EP applications;
- Monitor utilisation of approved FKW allocations;
- Maintain proper justification and supporting documentation for all submissions; and
- Cater time for any possibility of rejection of the requests and resubmission/appeals.
Companies should note that insufficient approved headcount or rejection of requests may result in delays in expatriate onboarding and EP processing. Companies are encouraged to proactively review workforce requirements to ensure compliance and operational continuity.
2) Additional Requirements for FKW Individual Application
In line with the revised expatriate salary and EP policy effective 1 June 2026, additional supporting requirements apply to FKW individual applications:
- Succession Plan: A complete and updated succession plan must be submitted for all applicable applications. However, implementation has been deferred to 1 January 2027.
- Native/Near Native Language Requirement Justification: Companies must provide clear justification where a native or near-native language requirement is imposed for a role.
- Proof of GBS Sector Operations (for Non-MD companies only): An official letter or relevant supporting document must be provided to demonstrate that the company operates within the Global Business Services (“GBS”) sector.
This may include:
- Membership with GBS Malaysia;
- Membership with the Contact Centre Association of Malaysia (“CCAM”);
- Any other relevant supporting documents deemed acceptable by MDEC.
Companies are strongly advised to ensure that all submissions are complete, accurate, and compliant to avoid delays. Incomplete applications may not be processed which will extend the overall processing timeline.
For further information, please contact:
Suganthi Singam, Partner, Shearn Delamore & Co.
suganthi@shearndelamore.com
References:
- www.mdec.my/expats/announcement/new-process-of–foreign-knowledge-worker-fkw-projection.
- www.mdec.my/expats/announcement/important-update-fkw-declaration-headcount-and-scheduled-expats-system-maintenance.
- www.mdec.my/expats/announcement/fkw-declaration-headcount-new-process-and-additional-requirements-for-fkw-individual-application-effective-1-june-2026.
