KUALA LUMPUR, Aug 20 — Prime Minister Datuk Seri Anwar Ibrahim has announced that the government will tighten the vetting process for new foreign investors to ensure their operations provide tangible benefits to the local workforce and the broader economy.
Speaking to the media following the launch of the TikTok Shop Summit Malaysia 2026, Anwar revealed that the Ministry of Investment, Trade and Industry (MITI) has flagged systemic issues regarding foreign firms that utilise Malaysia merely as a transit point.
“The presence of some companies that use these warehouses for transiting are not generating any advantage both in terms of employment and or economic benefits. We have stopped those activities, but we need to review new applicants,” Anwar said.
The PM was responding to concerns raised during the summit regarding the influx of cheap imported products on e-commerce platforms, which many fear are threatening the survival of local small and medium enterprises (SMEs).
Anwar acknowledged a visible surge in these imports despite ongoing enforcement efforts.
He cited specific examples of economic leakage, including locally registered businesses that sell exclusively imported goods, and foreign investors who rent warehouse space in Port Klang without contributing to the local job market.
“Therefore, I agree in principle that we must have stricter regulations to curb or restrict the uncontrolled influx of foreign goods,” he said.
“Because aside from our ‘buy local’ campaigns, we have to ensure the system protects all local businesses too.”
