Malaysia Tightens Exit Clearance and i-KAD Collection Rules for Employers
Updated: 4 hours ago
KUALA LUMPUR, October 15, 2026 — The Malaysia Digital Economy Corporation (MDEC) has issued a dual reminder to companies employing foreign nationals, urging them to reconcile exit clearance records and adjust to a new i-KAD delivery arrangement.
The move signals tighter enforcement of immigration compliance for employers, with failure to update records now carrying direct consequences for future applications through the eXpats System.
Exit Clearance Records: A Looming Bottleneck
MDEC is asking companies to review exit clearance records for foreign nationals whose Employment Passes have expired and who either have no recorded exit from Malaysia or have not updated or shortened their pass validity with the Immigration Department of Malaysia.
These records must be updated through the Exit Clearance module in the eXpats System. Companies that neglect this step may find themselves unable to submit or process future applications through the same platform.
The underlying issue is straightforward: when a foreign employee leaves Malaysia, their pass must be formally cancelled and their exit recorded. If the pass simply expires without a recorded exit, the system flags an inconsistency. Over time, these inconsistencies accumulate and can block an employer's ability to bring in new foreign talent.
For HR and mobility teams, the practical implication is clear — reconciliation should happen continuously, not only when a new application is blocked.
i-KAD Collection Moves to Delivery
Separately, MDEC has announced that from October 15, 2026, companies will no longer be able to collect i-KADs — the biometric identification cards issued to non-Malaysian residents — at the Expats Service Centre counter.
Instead, i-KADs will be delivered to companies within 10 business days after ePASS issuance. MDEC has said it will communicate further details of the delivery process separately.
Companies that still have i-KADs awaiting collection at the centre are advised to collect them as soon as possible.
The shift to delivery is intended to reduce footfall at the service centre and streamline the collection process, but it places greater responsibility on employers to ensure someone is available to receive and log the cards on arrival.
Passport Submission for Cancellations
A third compliance point concerns companies that have already submitted pass cancellation requests through the eXpats System.
MDEC is reminding employers to provide the original passports needed to complete those requests without delay. Late submission of passports can delay or prevent related immigration transactions and may affect future applications.
For employers, this means cancellation workflows should be treated with the same urgency as new applications. A pending cancellation without the supporting passport can hold up the entire pipeline.
What Employers Should Do Now
Three actions follow from the MDEC reminder:
Audit exit records. Review all foreign national employees whose passes have expired and confirm that exits are recorded or pass validity has been updated. Use the Exit Clearance module in eXpats to make corrections.
Plan for i-KAD delivery. Adjust internal processes to receive and register i-KADs delivered within 10 business days of ePASS issuance. Collect any cards still waiting at the Expats Service Centre.
Submit passports promptly. For any pending cancellation requests, ensure original passports are provided to MDEC without delay.
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Quick Reference Summary
Item | Detail |
Issuing Authority | Malaysia Digital Economy Corporation (MDEC) |
Exit Clearance Update | Through Exit Clearance module in eXpats System |
Consequence of Inaction | Difficulties submitting/processing future applications |
i-KAD Collection Change | Effective October 15, 2026 |
New i-KAD Delivery | Within 10 business days after ePASS issuance |
Old Collection Point | Expats Service Centre counter (no longer available) |
Pending i-KADs | Collect from centre as soon as possible |
Passport Submission | Required for pass cancellation requests; delays affect future applications |
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