Malaysia's Home Ministry is leading a special enforcement operation to crack down on foreigners running illegal businesses using social visit passes, following instructions from Prime Minister Datuk Seri Anwar Ibrahim on June 8, 2026 [1, 2, 3, 4, 5, 6, 7]. Home Minister Datuk Seri Saifuddin Nasution Ismail said the prime minister received numerous complaints about foreigners operating businesses without valid permits or licenses. "The prime minister himself has received complaints on this matter. As such, the relevant agencies have been instructed to strengthen enforcement actions," he said, adding that offences under the Immigration Act will be investigated [1].
Foreigners have exploited social visit passes by engaging in various business sectors, including beauty salons, restaurants, interior design, furniture trading, car repair workshops, air conditioning services, and small cafes [1, 2, 3, 4, 7]. Some register companies under local Malaysian names or legally incorporate firms but import goods and labor from their original countries, which affects local small and medium enterprises and communities [3, 4, 7]. Local traders complain about unfair competition because these foreign operators often do not pay taxes or comply with regulations, enabling them to offer significantly lower prices than Malaysian businesses [1, 2, 5, 6]. "While local businesses pay taxes and comply with regulations, these individuals often do not," the Home Minister explained [1].
The Home Ministry and enforcement bodies have already identified hotspots and mapped locations where foreigners violate the Immigration Act by illegal entry, overstaying, or misusing social visit passes [1, 5, 6]. A multi-agency task force comprising the Immigration Department, Royal Malaysian Police, Inland Revenue Board, Royal Malaysian Customs Department, Ministry of Domestic Trade and Cost of Living, Ministry of Housing and Local Government, Malaysian Communications and Multimedia Commission, Bank Negara Malaysia, and local authorities will coordinate the crackdown [1, 2, 4]. The prime minister emphasized immediate and coordinated action, stating the need to protect local employment and the survival of SMEs from illegal foreign businesses [3, 4, 7].
Past enforcement operations targeting such violations occurred in Sabah's east coast under the Eastern Sabah Security Command in 2025, where foreigners running businesses without permits were detected [2, 5, 6]. Since December 2023, Malaysia's visa-free entry scheme for Chinese citizens has increased the number of Chinese visitors and business people. Authorities report increased social concerns linked to visa abuse, scams, and illegal work by some Chinese nationals [3, 7].
Authorities are also reviewing e-commerce platforms and financial transactions for potential money laundering related to foreign illegal business operations, although this investigation is at an early stage [3, 4, 7].
The crackdown reflects the government's push to enforce existing laws without creating new committees. The Home Minister said, "The prime minister's position is clear. There is no need for additional committees or coordination mechanisms. The laws are already in place, the enforcement agencies already exist, and action must be taken immediately" [2].
