PM Orders Immediate Nationwide Crackdown on Illegal Foreign-Run Businesses

PUTRAJAYA: Prime Minister Anwar Ibrahim has directed all relevant ministries and enforcement agencies to immediately intensify efforts against illegal business activities involving foreign nationals, particularly those abusing tourist and student visas and misusing local business licences.

Speaking at the Communications Ministry’s monthly assembly in Putrajaya on Monday, Anwar said the government could no longer tolerate the growing number of cases involving foreigners operating businesses illegally under permits and licences intended for Malaysians.

“The measures we have proposed must be implemented immediately,” he said, stressing the need for coordinated enforcement by agencies including the Inland Revenue Board (LHDN), Customs Department, Ministry of Domestic Trade and Cost of Living, local authorities, the Malaysian Communications and Multimedia Commission (MCMC), and Bank Negara Malaysia.

Anwar instructed enforcement agencies to investigate financial transactions and online business activities linked to illegal operations. He said Bank Negara Malaysia and MCMC should scrutinise e-commerce platforms and money flows under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act (AMLA).

The Prime Minister warned that licences found to be misused should be revoked immediately, citing recent enforcement actions by Kuala Lumpur City Hall (DBKL) against businesses operating through fraudulent arrangements.

According to Anwar, some local licence holders register businesses only to transfer control to foreign operators, while others allow their names to be used as fronts for companies selling imported goods. Such practices, he said, have placed local traders at a serious disadvantage.

He also highlighted concerns over the influx of low-cost imported products sold through e-commerce platforms, noting that weak enforcement has enabled unfair competition that threatens the survival of small Malaysian businesses.

“Local traders are being wiped out because enforcement has not been strong enough,” he said.

Anwar further revealed that some trader associations and business groups have allegedly acted as intermediaries for foreign operators in exchange for financial incentives, rather than assisting authorities in enforcement efforts.

He called for stronger community involvement and closer cooperation between government agencies, chambers of commerce, hawkers’ associations and local communities to identify and report violations.

The Prime Minister also urged the Digital Ministry and MCMC to explore the use of artificial intelligence (AI) to monitor, detect and prevent illegal business activities more effectively.

“There is widespread concern across the country. Enforcement alone is not enough. This requires coordinated action from all agencies involved,” he said.

Anwar added that the issue could be coordinated through inter-agency meetings led by the chief secretary to the government, while the Communications Ministry should ensure the public understands that the government will not tolerate abuses that undermine national sovereignty and economic interests.

The assembly was attended by Chief Secretary to the Government Shamsul Azri Abu Bakar and Communications Minister Fahmi Fadzil.