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114. Application charges and fees also differ between the agencies and the processing
times are not common. Differing SOPs give rise to risks that players may manipulate the
system and engage in fraudulent practices. The separate systems do not allow for collection
of standardized socio economic, qualifications and skill types information for expatriates.
Data on entry and exit of expatriates are not collected systematically, consistently and shared.
There is a lack of coordination in supervision, leading to overlaps in enforcement actions.

115. The recent expansion in the numbers of EPIII expatriates indicates that firms are
hiring expatriates to fill lower level jobs not commensurate with the qualification required of
skilled expatriates. Moreover, the occupations filled by the EPIII expatriates appear to be
those where sufficient qualified Malaysians may be available to satisfy the needs of industry.

5.4.2 Policy recommendations for expatriates

Overall Policy

116. The Independent Committee recommends that, in line with the recommendation for a
single governance authority, the regulation and management of expatriate policy be
coordinated centrally by MOHR through the OPRM.

Online applications and approval system

117. MOHR working with the current agencies and ESD in a subcommittee administering
the expatriate program, must design a module for management of expatriates to be integrated
into the single online application and approval system. Information from the expatriate
module will feed into the central database of the system. With the online system the SOP of
all agencies with oversight and regulatory roles will be standardised. An algorithm for
approval including the use of a dependency ratio quota mechanism (similar to the PLKS
worker multi-tier levy system) will be developed and built into the module to remove as
much as possible discretion in the decision making process for approvals. In particular, the
criteria for determination of the need for the expatriate and the strategic importance of the
industry asking for such skilled professionals within the government’s growth objectives will
need to be identified and quantified within the decision algorithm.

118. The various employment passes to be issued to expatriates will be in a digital form
and transmitted online. The renewal, extension and repatriation processes of the employment
passes will also be undertaken online.

119. The online expatriate module will have the capability to issue a standard digitalized
ID card specific for expatriates, including virtual Smart online IDs sourced from biometric
information and the unique ID number for each expatriate stored in the online database. All
enforcement officers must give recognition to this expatriate Smart ID cards. Enforcement
authorities must no longer demand sight of hardcopy IDs like passports which absence
currently constitutes an offence.

120. The need for EPIII will be reviewed or better enforced to ensure that these expatriates
do not compete with Malaysian high-skilled and semi-skilled workers.

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