Anwar sends stern warning to illegal foreign businesses
PETALING JAYA: Crackdown efforts on illegal business activities involving foreigners will be intensified, says the Prime Minister.
Datuk Seri Anwar Ibrahim said Bank Negara and the Malaysian Communications and Multimedia Commission (MCMC) have been tasked with examining e-commerce platforms and money trails to tackle the rise in cases involving foreigners allegedly conducting business activities using tourist or student visas, as well as the abuse of permits and licences issued to Malaysians.
He said immediate action was needed as part of a broader crackdown, as the issue could not be addressed by a single agency alone.
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A coordinated effort involving all relevant authorities, including the Inland Revenue Board, the Customs Department, the Immigration Department, the Domestic Trade and Cost of Living Ministry, the Digital Ministry and Kuala Lumpur City Hall (DBKL), was necessary, he added.
“In Cabinet meetings over the past few months, we have raised concerns about groups entering the country as visitors, on visas or short-term visits, to engage in business activities,” he said, adding that the problem has gotten significantly worse.
E-commerce platform activities mostly involve those from China, while small businesses such as repair workshops, air-conditioning services and coffee shops are mainly run by those from India and Indonesia.
“As such, Bank Negara and MCMC should examine e-commerce platforms and money trails, including matters related to the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLA),” Anwar said during the Communications Ministry’s monthly assembly yesterday.
Some foreigners were allegedly using permits and licences obtained through locals to conduct activities here, Anwar said, stressing that businesses must be properly registered and operate in line with the law.
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Registered Malaysian businesses that are sold to foreign companies or foreigners, he added, are local only in name.
“Everything else involves imported goods. Local and small traders will be wiped out because of weak enforcement.
“Therefore, I want the measures we have proposed to be implemented immediately, with all relevant agencies working together to strengthen enforcement, including monitoring e-commerce activities and ensuring tax compliance,” he said, adding that permits found to have been misused should be revoked, similar to enforcement action taken by DBKL, he said.
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Meanwhile, Home Minister Datuk Seri Saifuddin Nasution Ismail, when met at the Home Ministry monthly assembly, said the issues raised by Anwar referred to complaints involving the Klang Valley.
“At the last Cabinet meeting, the Prime Minister said complaints had been forwarded to him directly.
“So all relevant ministries, including us, have been instructed to carry out immediate enforcement action without delay,” he said, adding that the Home Ministry had been conducting operations to detect such activities within the Eastern Sabah Security Command, with three such operations carried out last year.
“We look at offences under the Immigration Act. We’ve already identified the hotspots.
“The concern raised by local citizens is that while local businesses are paying taxes, these individuals may not be doing so and are offering services at much lower prices,” he said.
On a separate matter, Anwar said the Communications Ministry’s rollout and public communication of the Budi Madani RON95 (Budi95) initiative was among the government’s most successful efforts in explaining policies to the public.
In praising the outcome, Anwar said the clear and effective explanation of the initiative had helped improve public understanding and reduce confusion over the implementation of Budi95.
