Transfer from social pass to dp10

The DP10 is the form which the employer submits to immigration together with company information to a) get the green light to create/fill a post to be offered to a non-Malaysian, and b) review your profile to see if it matches the proposed post and the prevailing immigration rules.  The rule since August 2016 has been that the applicant has to be outside the country while the Stage I (DP10) is carried out - so yes, you should not be in Malaysia and immigration will return the application to the employer, stating that you need to leave and then provide proof of doing so (exit stamp in visa - entry stamp elsewhere). If immigration don't spot you are in Malaysia, they will not process Stage II (DP11) as at that stage they will have your passport in front of them, and will see the rules have been violated. This would require you to exit and the process re-started.