PM raises concern over foreigners misusing visas to run businesses

 

Prime Minister Anwar Ibrahim today expressed concern over the growing number of foreigners who misuse visitor and student visas to engage in business activities in Malaysia.

He said the government is aware of the threat posed by some foreign nationals who enter the country on tourist or student visas but subsequently operate businesses, including in the micro, small and medium enterprises (MSME) sector.

According to the prime minister, such practices can have an adverse impact on employment opportunities for Malaysians.

“Many also arrive from China on tourist visas but go on to operate small businesses, such as vehicle repair workshops, air-conditioning services, small companies and coffee shops,” he said at the Communications Ministry's monthly assembly in Putrajaya today.

Also present were Communications Minister Fahmi Fadzil, his deputy Teo Nie Ching, Chief Secretary to the Government Shamsul Azri Abu Bakar and Communications Ministry secretary-general Abdul Halim Hamzah.

Anwar claimed that some foreigners were operating businesses with licences and permits registered in locals' names, while others were legally registering companies but sourcing their goods and workforce from their countries of origin, thereby affecting the interests of local communities.

Close collaboration

In response, he directed the relevant ministries and enforcement agencies to take firm and comprehensive action against illegal business activities involving foreigners.

He said the proposed measures should be implemented immediately through coordinated efforts involving all relevant agencies, including the Inland Revenue Board (IRB), the Royal Malaysian Customs Department, the Domestic Trade and Cost of Living Ministry, local authorities, the MCMC, and Bank Negara.

According to Anwar, Bank Negara and MCMC should scrutinise e-commerce platforms and financial transactions, including elements of money laundering, while the ministry and the local authorities should assess the compliance of businesses involved.

“The IRB and Customs Department must ensure taxes are fully paid, while the Immigration Department must act against the misuse of passes and visas. This requires close collaboration among all enforcement agencies,” he said.

Apart from enforcement efforts, Anwar called for stronger cooperation with chambers of commerce as well as hawker and trader associations to address the growing presence of illegal businesses operated by foreigners.

“I am emphasising this because there is widespread concern across the country. Effective action cannot rely solely on isolated enforcement measures; it requires a coordinated approach involving all relevant agencies,” he said.

- Bernama