Converting Dependent Pass to Employment Pass

Hi Experts, I am working in Malaysia for a private company. My wife currently has [b]Dependent Pass [/b]and she has got offer from one company. We are trying to find information on what is the process for converting DP to EP. My wife's new employer has asked us to cancel the DP so that they could start EP process. However, what I understand from my company's HR and few close colleagues that, first my wife's new employer should give Employment Approval letter which will be released by Immigration Dept. of Malaysia (Expat. Services Division) and only after receiving that letter I should go ahead and cancel my wife's DP. This is to ensure that my wife gets EP from new company. As shared by my company's HR, there are cases when Malaysia Immigration can reject EP on grounds such as "the job can be done by local Malaysian". Is this true? We do not want to be in a situation where my wife's DP is cancelled or in the cancellation process and she is not getting the EP also.

Can anyone please confirm if we should ask the new employer of my wife to provide the Employment Pass approval letter first before cancelling the dependent pass? Is it necessary to cancel the DP of my wife to process her documents for Employment Approval pass? Looking forward to your guidance.