GEORGE TOWN: The federal government's planned crackdown on illegal foreign-run businesses will help create a fairer environment for local small and medium enterprises (SMEs) and micro businesses, says Sim Tze Tzin.
The Deputy Investment, Trade and Industry Minister said the move followed Prime Minister Datuk Seri Anwar Ibrahim's directive for ministries and enforcement agencies to take action against foreigners misusing tourist or student visas and business licences under Malaysian names to do business.
However, Sim stressed that the enforcement exercise was not targeted at any particular nationality, adding that legitimate foreign investments remained welcome.
"We welcome all investors. Our mandate is to attract legitimate investments into Malaysia. Any investor who complies with Malaysian laws is welcome," he told reporters after a business dialogue session organised by the Penang Chinese Chamber of Commerce on Friday (June 12).
"We do not discriminate against any country or any group. We are simply enforcing Malaysian laws," he said.
He added that MITI would continue monitoring the issue and support enforcement efforts against businesses operating without the necessary permits, licences or approvals.
Sim said business groups had repeatedly raised concerns over illegal business activities that created unfair competition for local operators.
"We brought these concerns to the Prime Minister and he recognised that they were being affected by unfair competition.
Sim said SMEs were often forced to compete with operators who allegedly avoided taxes, licensing requirements and other compliance costs.
Earlier this week, Anwar said authorities had detected an increasing number of foreigners entering Malaysia on tourist visas before allegedly operating businesses such as vehicle workshops, air-conditioning services, coffee shops and other small enterprises.
The Prime Minister said enforcement efforts would involve agencies, including Bank Negara Malaysia and the Malaysian Communications and Multimedia Commission to monitor e-commerce activities, money trails and possible offences under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act.
Asked whether such activities were confined to online businesses, Sim said they took place through multiple channels, including online platforms, physical premises and individual operators.
As an example, he cited cases highlighted by the Prime Minister involving foreign-controlled tourism operations.
"There are situations where everything from tour bookings and tour guides to transportation, accommodation and food services is controlled by the same foreign business network.
"The profits go back to those operators while local businesses receive very little benefit," he said.
