Prime Minister Datuk Seri Anwar Ibrahim has ordered a nationwide crackdown on foreigners misusing tourist and student visas to operate businesses in Malaysia, citing concerns about local employment and unfair competition [1, 2, 3, 4, 5]. "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 [1]. The misuse negatively affects small traders and frustrates tax compliance efforts.
Foreign nationals often use licenses registered in Malaysians' names or legally incorporate companies but bring in goods and employees from their home countries to operate businesses [1, 3, 5]. The government said some local trader and hawker associations act as intermediaries for these foreigners, helping them avoid enforcement in exchange for special fees [3, 5]. Anwar warned, "Some have become agents, as we have seen in several local councils and city halls, where instead of assisting enforcement bodies, they act as agents for foreigners in return for special collection incentives" [3].
The government has directed coordinated action among multiple agencies, including the Inland Revenue Board, Royal Malaysian Customs Department, Ministry of Domestic Trade and Cost of Living, local authorities, Malaysian Communications and Multimedia Commission (MCMC), Bank Negara Malaysia, and the Immigration Department [1, 2, 3, 4, 5, 6]. Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar said he is mobilizing the entire civil service to "strengthen coordinated, integrated action across ministries and agencies, to enforce the law, protect the people, and preserve a just business environment" [4].
Bank Negara Malaysia and MCMC will scrutinize e-commerce platforms and financial transactions to detect money laundering and illegal trading [1, 2, 3, 5]. Local authorities and the Ministry of Domestic Trade will verify businesses’ licensing and compliance [1, 3, 5, 6]. The Immigration Department will act against misuse of visas and social visit passes [1, 6]. Home Minister Datuk Seri Saifuddin Nasution Ismail affirmed Cabinet’s directive for immediate enforcement and said, "There are already laws in place, suitable legal provisions and existing enforcement agencies. What is needed now is action, not another task force" [6].
The crackdown is in response to multiple complaints from the public and concern among local businesses over unfair competition and tax evasion [5, 6]. Enforcement is ongoing in Sabah and the Klang Valley [6].
Communications Minister Datuk Fahmi Fadzil also called on social media platforms to act against graphic accident videos and online gambling content. He said, "Platforms must take action. If they fail to do so, and we find that there are complaints, then the MCMC can take action against these platforms under the Online Safety Act" [7]. He noted the need to protect families from unfiltered footage of tragic events and reiterated that online gambling is illegal in Malaysia [8, 9].
MCMC is monitoring online gambling ahead of the World Cup 2026, which runs from June 11 to July 19, and recently demanded telcos improve mobile coverage in Sabah’s Kampung Tinagat after findings of poor service [10, 9, 11].
The government’s next concrete step is immediate, coordinated enforcement by all involved agencies to stop visa misuse and illegal business operations in Malaysia as ordered by the Cabinet today [1, 2, 3, 4, 5, 6].
