MDEC requirements for Employment Pass (Kuala Lumpur)

Hi all,
My company applied for EP (Category II)for me and we are still in stage1. MDEC is asking for these requrements :

(1) Copy cancellation page of applicant current pass, acknowledgement letter is ready for collection
(2) To advise applicant to cancel the current pass and exit Malaysia until stage 1 approval been obtained.

Can anyone explain to me how to cancel my current pass, what will be my situation after pass cancellation? Is it necessary to exit ?

Thank you.