MITI Steps Up Efforts To Curb Illegal Foreign-operated Businesses

GEORGE TOWN, June 12 (Bernama) -- The Ministry of Investment, Trade and Industry (MITI) is stepping up efforts to curb illegal business activities by foreign traders following complaints from local micro, small and medium enterprises (MSMEs) over unfair competition.

Its deputy minister, Sim Tze Tzin, said the move is in line with Prime Minister Datuk Seri Anwar Ibrahim's directive for integrated enforcement action against illegal businesses, particularly those involving foreigners who violate Malaysian laws.

“MITI has received complaints from industry players regarding illegal business activities by foreigners that are affecting local businesses.

“The Prime Minister has listened to the concerns of industry players, including small, medium and micro enterprises facing unfair competition from those operating illegally. As a result, the government has ordered large-scale enforcement action against such activities," he told reporters after attending a dialogue session organised by the Penang Chinese Chamber of Commerce (PCCC) here today.

Also present was PCCC president Datuk Seri Choot Ewe Seng.

Sim said the government welcomes legitimate investments and businesses that comply with Malaysian laws but will not compromise on illegal activities that undermine the opportunities and income of local entrepreneurs.

He said local MSMEs and micro enterprises are often placed at a disadvantage as illegal operators are alleged to evade taxes and fail to comply with business regulations and requirements.

Last Monday, Anwar expressed concern over the growing number of foreigners misusing visitor and student visas to conduct business in the country.

Sim said some foreigners enter Malaysia using facilities such as visa-on-arrival arrangements before engaging in illegal business activities, either online or through physical operations.

He cited a case in Sabah where an entire tourism industry supply chain was controlled by a foreign group, resulting in economic benefits not being enjoyed by local industry players.

The government is aware of the threat posed by foreigners who enter the country on visitor or tourist visas but subsequently engage in business activities, including in the MSME sector, affecting opportunities for local workers and businesses, he added.

-- BERNAMA