How does the misuse of social visit passes affect local businesses?

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Misuse of Social Visit Passes Undermines Local Business Ecosystem

The misuse of Social Visit Passes (PLS) by foreigners to operate businesses illegally significantly disrupts the competitive landscape for local enterprises. This illicit activity creates an uneven playing field, directly impacting the productivity and long-term sustainability of legitimate Malaysian businesses. The Ministry of Entrepreneur and Cooperatives Development (KUSKOP) acknowledges these serious concerns raised by local entrepreneurs.
Compromised Competitive Ecosystem

The operation of businesses by individuals on social visit passes introduces unfair competition. This practice erodes the principles of a healthy competitive ecosystem by allowing unregistered and potentially untaxed entities to operate. Such an environment can discourage investment and growth for businesses that adhere to regulations, as they face competition from those operating outside the established legal framework.
Direct Impact on Productivity and Sustainability

The presence of illegal businesses operating under misused social visit passes directly affects the productivity and sustainability of established local businesses. These unregulated entities may offer goods or services at lower prices due to avoidance of compliance costs, taxes, and labour laws. This can lead to reduced market share and profitability for local entrepreneurs, making it harder for them to sustain and grow their operations.
KUSKOP's Commitment to Local Entrepreneurs

KUSKOP, as the ministry responsible for fostering the micro, small, and medium enterprise (MSME) ecosystem, takes the issues faced by local entrepreneurs very seriously. The ministry's role includes facilitating a fair, transparent, and conducive business environment, particularly for Malaysian business owners. This commitment underscores the government's understanding of the challenges posed by the abuse of PLS and its dedication to addressing them.

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How does the misuse of social visit passes affect local businesses?

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