PM Calls for Crackdown on Visitor and Student Visa Business Abuse
Prime Minister Anwar Ibrahim warned that foreigners are exploiting tourist and student visas to run small enterprises, urging immediate, coordinated action by multiple agencies.
The short version
- Foreign nationals are using visitor and student visas to operate MSME‑type businesses.
- The prime minister ordered a multi‑agency response, including immigration and tax authorities.
- Businesses registered in locals' names or importing staff from abroad are under scrutiny.
Rising visa misuse concerns
At a monthly briefing of the Communications Ministry, the prime minister highlighted a growing pattern where some overseas visitors and students set up commercial activities after entering Malaysia on short‑term passes. He noted that the trend is not limited to a single sector, with enterprises ranging from vehicle repair workshops to coffee shops appearing across the country.
The minister stressed that such operations can erode job opportunities for Malaysians, particularly in the micro, small and medium enterprise (MSME) segment. He pointed out that the practice undermines the purpose of visitor and student visas, which are intended solely for tourism, study or short‑term training.
Targeted sectors and methods
According to the prime minister, a noticeable number of individuals arriving from China on tourist visas have gone on to run small‑scale businesses, including air‑conditioning services and retail outlets. Some operators are registering companies under Malaysian names while sourcing equipment and labour from abroad, a tactic that can sideline local suppliers and workers.
In other cases, foreigners are obtaining the necessary licences in the names of Malaysian partners, effectively masking foreign ownership. This arrangement raises questions about compliance with local regulations and the fairness of competition faced by home‑grown entrepreneurs.
Coordinated enforcement plan
The prime minister instructed relevant ministries and enforcement bodies to act swiftly and jointly. He named the Inland Revenue Board, Royal Malaysian Customs Department, Ministry of Domestic Trade and Cost of Living, local authorities, the Malaysian Communications and Multimedia Commission and Bank Negara Malaysia as key participants in the crackdown.
Specific duties were outlined: customs and tax agencies must verify full tax payment, while the immigration department should clamp down on visa misuse. Financial regulators are to monitor e‑commerce platforms and transactions for signs of money‑laundering linked to illicit businesses.
Broader collaboration efforts
Beyond strict enforcement, the prime minister called for stronger links with chambers of commerce, hawker and trader associations to identify and deter illegal operations. He argued that isolated actions would be insufficient, emphasising the need for a holistic, nation‑wide approach.
The overarching message was one of urgency: the government will not tolerate activities that compromise local employment or economic fairness, and all agencies must work in concert to protect Malaysia’s business environment.
““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,””
What it means
What this changes for an applicant
- Applicants for visitor or student visas should be prepared for tighter scrutiny of any commercial intent during their stay.
- Existing foreign‑run small businesses may face audits, licence reviews or forced closure if found operating without proper permission.
- Malaysian partners linked to foreign investors could be investigated for facilitating unauthorised business activities.
Source
This article was written by Malaysia Visa Guide, based on reporting by mof.gov.my. We summarise and explain the news in our own words; we do not reproduce it. Read the original report for the publisher's full account.
Last updated 25 July 2026.
Written and reviewed by Jason Yap, Chairman of the PVIP Agent Association.
Last reviewed 25 July 2026.
News is a starting point, not advice.
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