PUTRAJAYA, June 8 — Prime Minister Datuk Seri Anwar Ibrahim today ordered a coordinated nationwide crackdown on illegal business activities involving foreigners abusing tourist or student visas.
He said stern action would be taken against those found to have obtained business licences illegally, stressing that the government could no longer tolerate repeated violations despite numerous warnings.
“We have given countless warnings, but now action must be taken so that they stop this immediately,” he said.
Anwar said multiple agencies would be mobilised to tackle the problem, including through scrutiny of online trading activities, financial transactions, licensing compliance, tax payments and immigration offences.
“Bank Negara Malaysia and the Malaysian Communications and Multimedia Commission (MCMC) will study activities on e-commerce platforms and track money trails under anti-money laundering laws.
“Local councils and the Domestic Trade and Cost of Living Ministry (KPDN) will verify the licensing status of traders, while the Royal Malaysian Customs Department will ensure taxes are properly paid. The Immigration Department will focus on the misuse of passes and visas,” Anwar told a monthly assembly at the Communications Ministry today.
Anwar also called on the Communications Ministry to highlight the issue publicly and convey a clear message that the Malaysian government would not take such wrongdoing lightly.
“I hope the Communications Ministry can highlight this matter and send a strong message across,” he said.
The prime minister said trader associations should also cooperate with enforcement agencies, noting that some organisations had failed to play a constructive role.
While acknowledging that some associations were aware of the issue, Anwar said others had proven unreliable and, in certain cases, had become intermediaries for illegal trading activities.
“Based on our experience through monitoring by local councils, not only have some not helped enforcement agencies, but they have ended up acting as agents for foreign workers, including collecting special fees from them,” he said.
Anwar also stressed the need to empower the public to report violations and called for greater use of digital tools and artificial intelligence to strengthen monitoring and detection efforts.
“I am stressing this because it has become a concern among Malaysians.
“I live in Sungai Long, and just the other day when I went for a haircut, the barber raised his concerns with me, how they are losing out on business opportunities,” he said.
He has also instructed Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar to coordinate efforts across ministries and agencies to ensure enforcement measures are aligned and effective.
Concerns over the presence of foreign nationals operating businesses without proper permits have surfaced periodically in Malaysia, particularly amid allegations that some individuals enter the country using tourist or student visas before engaging in commercial activities.
Authorities have also previously raised concerns over the use of local nominees or proxies to obtain business licences and permits on behalf of foreigners, a practice commonly referred to as “Ali Baba” arrangements.
Anwar first raised the issue at last Friday’s Cabinet meeting and instructed authorities to take action against illegal foreign-run businesses.
His call for a multi-agency approach today was aimed at ensuring enforcement goes beyond raids and confiscations, with action supported by in-depth investigations and coordinated oversight.
