Malaysia: No U.S. Directors Refused Exit for Pension Arrears

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By Michael Mackey

Oct. 3—No directors of U.S. companies have so far been denied exit from Malaysia because of outstanding Employee Provident Fund contribution liabilities, the EPF told Bloomberg BNA Sept. 26.

“In the second quarter of 2014, a total of 249 directors have been prohibited to leave the country, of which 45 directors are foreign nationals,” the EPF's Corporate Affairs Department said in a written response to the BBNA query. “None are United States nationals.”

As previously reported, the EPF fined a total of 114 corporate directors whose organizations defaulted on their monthly EPF contributions and filed 270 civil and 843 criminal lawsuits against employers.

“Filing of criminal or civil suits per se will not trigger director's names to be passed to the Immigration Department,” the EPF said. “However, when judgment is recorded on a civil suit, if it is confirmed that the defendant failed to settle the outstanding amount, the EPF may request that the Immigration Department restrict the defendant from leaving the country.”

To contact the reporter on this story: Michael Mackey in Bangkok at

To contact the editor responsible for this story: Rick Vollmar at

For more information on HR law and regulation, see the Malaysia primer.

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