outsourcing to be abolished by 31-03-2019

All out source work permits/expat permits etc will be canceled by imm dept from 1/4/2019 and all legal outsourced foreign workers must be transferred to direct employers---this  news is coming as a breaking news from the morning--is this correct ?


HR Minister said Putrajaya was considering the abolition of the Category II and Category III employment passes given to expatriate workers.

There are 3 categories of employment passes. Category I refers to jobs paying RM10,000 and above, Category II is for salaries between RM5,000 and RM10,000, and Category III is for jobs below RM5,000.

Kulasegaran said Putrajaya was planning to only keep Category I, with Categories II & III to be phased out.

https://www.freemalaysiatoday.com/̷ … fo…/


Does it affect you?

It's just at the discussion phase with stakeholders for the minimum entry salary to be RM10k or the current Category 1 level.

Outsourcing does seem to be moving towards accountability with direct hiring by end employer. Timeline or details not revealed.

Of course these appear contradictory as many outsourced workers are in Category 2 or 3 and are foreign labour (eg call centres and software services)

Have to wait for more news.

My employer try to log-in at ESD website. But they could not log-in. Previously they were able to log-in. What does this mean? I saw in the news that MM2H had similar issue of application backlog due to all approvals must have KDN approval.

Perhaps they forgot their password.

The system might have been down.

They should report the problem to ESD.

It's probably a technical glitch. They need to solve it.

Mm2h has changed from being under tourism ministry to home affairs but delays are for other reasons.

1st March 2019 a new immigration database was launched so ESD can advise if there is any change in login procedure

Thanks Gravitas. Hopefully its only database glitch on ESD.


Janesays :


This question to the Forum a few days ago is about an employee moving from outsourced (agency) to direct labour


I think this is relevant: https://esd.imi.gov.my/portal/latest-ne … egory-iii/

"Recently, we have received feedback related to the announcement made by the Immigration Department of Malaysia on 7 March 2019 on the review of Employment Pass Category III (EPIII) applications.

We wish to share that applications for Employment Pass Category III (EP III) will now be processed as normal and companies may proceed to apply via the ESD online system until further notice. Applications requesting for exemption of EPIII which were returned to a company will be processed accordingly as well.

Hence, companies are advised to re-submit their EPIII request via the ESD online system for further action and processing by Immigration Department of Malaysia."

It seems that the glitch is resolved. Now CAT3 can apply. The multi-tiered levy is the way to go if things/applications had to be transparent.

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