Quick answer: MDEC's pages reviewed state no fixed number, ratio or quota of foreign employees for an MD status company. Headcount is set through the FKW Projection Request: the company files it with mandatory documents, MDEC reviews it against the revised policy, and the FKW Approval Committee decides. Only approved headcount allows individual FKW applications. Ask MDEC for the figure that applies to your company, because third-party figures may be out of date.
- No headcount limit, ratio or quota appears on MDEC's MD pre-application or announcement pages.
- The FKW Approval Committee decides the projection.
- Individual applications are allowed only within approved headcount.
- Activities must match the MD or MSC Malaysia approval letter.
- A succession plan declaration becomes annual from 1 January 2027.
What the Sources Say
MDEC's June 2026 announcement states that the page gives no headcount limits, quotas or per-company figures, and its MD pre-application page lists no headcount or ratio rules. The only rule stated is procedural: only approved projection headcount allows individual FKW applications.
How Headcount Is Set
| Stage | What happens |
|---|---|
| Request | Company files the projection in eXpats with all mandatory documents |
| Review | MDEC reviews against the revised policy and the documents |
| Decision | FKW Approval Committee approves or rejects, and notifies through the system |
| Use | Company files individual applications within approved headcount |
What Probably Weighs on the Decision
MDEC does not publish its decision criteria in the pages reviewed. The documents the projection needs, the company's approved activities and the justification given for each role are what MDEC checks, so a complete, specific submission is the best preparation. Treat any article that names a hard number as unverified unless it cites an MDEC document.
Example: Planning Headcount
Example. A company with MD status plans a product team and a delivery team over two years. It lists each planned role, why it needs a foreign hire, the monthly basic salary and the category it falls in. It files the projection and, once approved, files individual applications up to that headcount. If plans grow, it files a new projection for additional headcount, as MDEC's announcement says.
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Keep the Foundation Sound
- Activities in the MD or MSC Malaysia letter match the roles.
- No non-qualifying activity, such as staff augmentation, creeps into the business.
- The company keeps meeting its status conditions. MDEC states passes may be revoked if it does not.
- Succession plan information is ready ahead of 1 January 2027.
Common Mistakes
Quoting a quota you read online
MDEC's pages reviewed state none.
Filing a thin projection
Incomplete submissions may not be processed.
Forgetting additional headcount needs a new request
MDEC's announcement says new or additional headcount requires a projection request.
How We Help
What we handle for you
Before you apply
- Check which MDEC route your company fits, MD status or non-MD ICT, and whether the post, salary and category match.
- Prepare the JTKSM, MyFutureJobs and supporting documents with your team and review them against MDEC's checklist.
Application
- Prepare the FKW projection and pass application for your company's authorised person to submit, and help you respond to MDEC and Immigration queries.
- MDEC states that companies are discouraged from nominating a third-party agent as the authorised person, so the submission stays under your own account.
Why companies choose us
End-to-end under one roof
- We handle company incorporation, Malaysia Digital status, accounting and payroll as well as expatriate pass preparation, so your structure, payroll and hiring plan stay aligned.
- The company is set up correctly from day one.
We check before you invest
- We confirm eligibility, including whether you can hire the expatriates you need, before a foreign investor decides to incorporate in Malaysia.
- Neutral Consulting PLT is a Kuala Lumpur firm led by a Managing Partner who is a member of the Malaysian Institute of Accountants.
Frequently Asked Questions
Straight answers to the questions we hear most.
What is an FKW Projection Request?
It is the request through the eXpats system for the number of foreign knowledge workers a company may hire. Under MDEC's June 2026 announcement, a company seeking new or additional FKW headcount files the request with all mandatory documents, MDEC reviews it, and the FKW Approval Committee decides. Only approved projection headcount allows the company to file individual FKW applications.
Which companies can apply through MDEC?
MDEC's Expats Service Centre serves companies with Malaysia Digital (MD) status, or MSC Malaysia status, that are in operation and comply with the conditions of that status. It also serves ICT companies without MD status that are fully operational and use ICT as their core business, subject to a minimum paid-up capital, a physical office and an assessment by MDEC. Companies in non-qualifying activities, such as trading, staffing and staff augmentation, do not qualify.
How long does an Employment Pass application through MDEC take?
MDEC states about 14 working days for an FKW Projection Request, about 7 working days for an individual FKW application, and 10 working days for the JTKSM section 60K approval that comes first. Endorsement takes 3 working days for an applicant already in Malaysia, and immediate endorsement at ESC KLIA Terminal 1 for an applicant arriving from abroad. A first-time MD company subscription takes about 2 working days, and a non-MD registration about 30 working days. These are stated service times for complete submissions, not guarantees.
Does staff augmentation qualify?
No. MDEC lists staff augmentation among the activities that do not qualify, describing it as resource requests through a request form, projects without project managers, pricing by resource tables or work permit costs, and resources with no service level commitment beyond available hours. MDEC states that it may check for these activities and revoke passes or MD status at any time.
What is a succession plan, and is it compulsory?
Immigration's FAQ describes it as a structured plan to prepare local employees to take over expatriate roles within the employment period, which may include role transfers, training, knowledge transfer and a timeline. MDEC's June 2026 announcement says companies are encouraged to submit succession plan information now, and that an annual succession plan declaration takes effect on 1 January 2027, as communicated by the Ministry of Home Affairs.
Where is the full document list?
MDEC publishes an Employment Pass Checklist for MD Companies and one for Non-MD Companies, both version 3 with file names dated 28 May 2026, and an FKW Projection checklist and template for June 2026. They sit in MDEC's document library, which this page could not reproduce. Download the current version from MDEC rather than relying on any third-party list, ours included.
What if the application is rejected?
MDEC issues a Rejection Letter. For section 60K, Xpats Gateway states there is no cooling-off period before reapplying. The MDEC pages reviewed do not describe an appeal procedure for FKW applications, so ask the Expats Service Centre what options apply, and correct the cause before you resubmit rather than resubmitting the same file.
Can we use a consultant or agent for the application?
MDEC states that companies are discouraged from nominating a third-party agent as the company's authorised person. The authorised person is named in the Authorised Person Letter on company letterhead and signs up through the company's own account. A consultant can still help prepare documents, check them against MDEC's checklist and advise on the route, while the company's own authorised person submits. Xpats Gateway separately says a Private Employment Agency may submit section 60K applications as an authorised representative, although its own wording on who counts as one is unclear.
Is there a ratio of foreign to local staff?
MDEC's MD pre-application page reviewed lists no ratio. Immigration's revised policy FAQ describes a succession plan, not a ratio.
Does MD status itself cap foreign headcount?
The pages reviewed state no cap. The projection decides.
How long does an increase take?
A new projection request takes about 14 working days per MDEC's process page, plus time for individual applications.
What if my projection is partly approved?
The pages reviewed do not describe partial approval. Only approved headcount can be used. Ask the Expats Service Centre.
Do non-MD companies face a different headcount rule?
MDEC's non-MD pages reviewed also state no headcount rules, and the same projection process applies, per MDEC's application process page for non-MD companies.
Where did older figures come from?
MDEC's earlier announcements, from 2024 and 2025, described the new FKW projection process and the 2025 headcount submission. The June 2026 announcement describes the current process, so rely on it.
Sources
Official sources
- MDEC, FKW declaration, headcount and additional requirements (June 2026)
- MDEC, Pre-application process for MD companies
- MDEC, Application process for MD companies
- MDEC, Pre-application process for non-MD companies
- MDEC, Application process for non-MD companies
- Immigration Department (ESD), Revised Expatriate Salary Policy FAQ (updated 12 February 2026)
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with MDEC, the Immigration Department (ESD) and MIDA, or with us, before you act. Checked November 2026.
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