Malaysia will now strictly monitor and take action under the Immigration Act against foreign nationals who operate businesses under the guise of visit visas.
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Malaysia has banned foreigners from operating businesses on social visit passes. The Malaysian Home Affairs Ministry has announced that it will take strict action against those who do so.
Home Minister Datuk Seri Saifuddin Nasution Ismail said at a recent cabinet meeting that Prime Minister Datuk Seri Anwar Ibrahim had instructed foreign nationals to take immediate action against those operating businesses without valid permits.
Home Minister Saifuddin told reporters after a monthly meeting at the ministry on Monday, "The Prime Minister's view is clear. There is no need for any additional committees or coordination mechanisms. The law is in place, the enforcement body is in place, and immediate action will be taken."
According to him, the officials entered Malaysia as social visitors, but in practice they are operating beauty parlors, restaurants, interior design services and furniture businesses. According to immigration rules, those on social visit passes cannot work or do business without the appropriate permits.
The Home Minister said that the foreign operators are competing unfairly by selling goods and services at prices much lower than local businesses. He said, 'Local traders and trade associations have raised problems in interactions with the government. They are doing business by completing the licensing process and paying taxes, but they complain that the foreigners are doing business without that obligation.'
He said that action will be taken under the Immigration Act against foreigners who misuse the pass and other agencies will investigate violations of business licenses, premises rules, taxes and local body bylaws.
