Malaysian PM Orders Crackdown on Chinese Nationals Abusing Tourist Visas for Business

(Kuala Lumpur, 8th, Central News Agency) Malaysian Prime Minister Anwar Ibrahim stated today that many individuals from China are entering the country on tourist visas and subsequently operating small businesses, raising concerns among authorities. The Malaysian government has instructed relevant departments to jointly crack down on foreign nationals abusing tourist or student visas to engage in commercial activities.

According to the Malaysian official news agency Bernama and China Press, Anwar Ibrahim said at the regular monthly meeting of the Ministry of Communications that some foreign nationals entering on tourist or student visas and then running businesses could adversely affect employment opportunities for Malaysians.

He pointed out that many people from China enter on tourist visas but operate small businesses such as car repair workshops, air conditioning repair services, small companies, and coffee shops.

The report indicates that some foreign nationals operate businesses using licenses registered under the names of local Malaysians, while others register companies legally, but their sources of goods and labor all come from their home country, affecting the interests of the local community.

Anwar instructed relevant ministries and law enforcement agencies to take action against illegal commercial activities involving foreign nationals and to review e-commerce platforms and financial transactions for potential money laundering activities.

He also called on the government to strengthen cooperation with various chambers of commerce and hawker associations to jointly address the increasing problem of foreign nationals doing business illegally, thereby protecting the survival space of local small and medium-sized enterprises.

Malaysia has implemented a visa exemption policy for Chinese citizens since December 2023, leading to a significant increase in the number of Chinese tourists and business travelers. However, cases involving some Chinese citizens in online fraud, illegal work, and visa violations have drawn attention from Malaysian society.

Malaysian police have recently cracked down on several transnational fraud syndicates primarily involving Chinese citizens, with suspects renting high-end apartments as bases for telecommunications and investment scams. Some real estate agents also report that certain Chinese tenants are using the visa-free facility to rent short-term properties for business, prompting the industry to strengthen background checks on tenants.