How will enforcement agencies tackle illegal businesses by foreigners?

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Enforcement Agencies to Intensify Action Against Foreign Nationals Operating Businesses on Social Visit Passes

The Malaysian Cabinet has directed relevant enforcement agencies to immediately initiate action against foreign nationals found conducting business activities while holding social visit passes. This directive follows public complaints and aims to address concerns regarding unfair competition and regulatory non-compliance. Intensified enforcement efforts are underway, with a focus on action rather than the formation of a new task force, as existing laws and agencies are deemed sufficient.
Coordinated Agency Enforcement Intensified

Following a Cabinet directive, multiple government bodies are set to escalate their enforcement operations. The Home Ministry, alongside the Ministry of Housing and Local Government and the Ministry of Domestic Trade and Cost of Living, has been instructed to expedite and intensify their efforts. This coordinated approach aims to swiftly address instances where foreign nationals are engaging in commercial activities while on social visit passes, a practice generally prohibited under international norms and Malaysian adherence to these principles.
Addressing Unfair Competition and Regulatory Breaches

Concerns have been amplified by local business groups, who have repeatedly voiced issues concerning unfair competition. These groups highlight that foreign nationals allegedly operating businesses illegally often evade taxes and bypass regulatory requirements that local traders must adhere to. The current enforcement drive seeks to rectify this imbalance and ensure a level playing field within the domestic market.
Legal Framework and Hotspot Identification

Action against foreign nationals misusing social visit passes will be managed under existing legal frameworks. Immigration-related offences, including entering without documentation, overstaying, or misusing passes, will be prosecuted under the Immigration Act. Concurrently, issues pertaining to business licenses and commercial premises fall under the purview of the respective authorities. The ministry has identified specific "hotspot areas" with a high concentration of foreign nationals, indicating a targeted strategy for enforcement operations.
Focus on Action Over New Task Force

The government has affirmed that sufficient laws, legal provisions, and enforcement agencies are already in place to tackle this issue effectively. Therefore, the immediate priority is to implement decisive action rather than establishing a new task force. This signifies a commitment to utilising existing resources and legal mechanisms to address the problem, with enforcement being recognised as a continuous responsibility for the ministry and its affiliated agencies.

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