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If you have written a letter of resignation to Company A and they have accepted it, they are legally obliged to cancel your EP, You just choose the date you are leaving the company. No letter required from immigration or Company B.

Sounds like they are not pleased and are not going to cooperate. This is awkward as Company A needs to cancel the current EP in their ESD database - if they don't you're blocked.

I have already resigned and even they gave me release letter. Would it be possible to cancel by myself?

No you need the company to cancel it.  You say you have Stage I approval. Can't company B just provide a screenshot.  Or is Company A really just wanting to know if you are going to work for a competitor? Company B must have something "in writing" about Stage I approval. But Company A does not really need anything to process a cancellation.

Company B provided me the screen shot. I have given to Company A to show this while cancellation but they are saying immigration is not accepting this and need cover letter. Moreover I am going to switch from my current field so I don't think so Company B is a  competitor for them.

Sounds like b*llsh** to me (or a new rule to complicate matters). Hang on, immigration is not accepting that THEY (immigration) have not written a letter (to themselves)?

I have asked Company A HR whether I can go to immigration by myself and they agreed. Would it be okay to be there with screenshot provided by Company B to process cancellation?

Then all you need is a letter from Company A (with their company seal) confirming immigration can cancel.

This letter have any format/ template ? or
Just this sentence is enough with Company A letter head ?

Then all you need is a letter from Company A (with their company seal) confirming immigration can cancel.

I think there is a certain wording required, but there should be an example among the MDEC documents...... (just to give an idea)

Alright will try and update. Thanks gravitas.

Hi there

Is there any possibility/cases that immigration to ask extra documents after accepting to cancel?

I've never heard of any, but with the new government anything is possible. It might be something to do with tax, as the country is bleeding milllions of ringgit through uncollected taxes due from foreigners.

Oh I see. Lets hope for the best. Thanks.