KUALA LUMPUR: Foreigners married to Malaysians are not automatically allowed to work or operate a business in the country, says the Immigration Department.
It said those holding a Social Visit Pass under the Malaysian Citizen’s Spouse category must submit a separate application to obtain permission to work.
“Permission will be granted through an endorsement in the foreign national’s passport,” the department told The Star.
The department said it detects foreign nationals suspected of running businesses without the required immigration endorsement through public complaints and information and intelligence gathered by its officers.
The department said offences involving violations of pass conditions are recorded under Regulation 39(b) of the Immigration Regulations 1963.
Those found committing such offences may face legal action, including being issued a summons or compound notice, having their passes cancelled, being issued a removal notice, and blacklisted from entering Malaysia.
The department also warned that Malaysians who act as employers or business partners could be investigated and charged under Section 55B of the Immigration Act 1959/1963 for employing foreign nationals without valid passes.
They could also face action under Section 56(1)(d) of the same Act for harbouring individuals who violate immigration laws.
In determining whether a foreign spouse is merely helping in a family business or actively operating or managing it, investigations are conducted on a case-by-case basis.
Factors assessed include the individual’s actual role and working hours, business ownership structure, financial transaction flows, and account ownership.
For foreign spouses caught operating a business without the required endorsement, the department said they would be compounded and warned as well as advised to obtain permission to work.
It added that notification letters would be sent to local authorities for further action, including for offences involving foreigners operating businesses or working without proper permits.
Meanwhile, the Companies Commission of Malaysia (SSM) said it was aware of concerns over the potential misuse of Malaysian identities in business registrations but had not received any specific complaints or reports involving such cases.
SSM said inspections found businesses operated by non-citizens were duly registered under the Companies Act 2016 or Limited Liability Partnerships Act 2012.
It added a non-Malaysian citizen cannot register a business as a sole proprietor or partner in a conventional partnership under the Registration of Businesses Act 1956.
The commission said it was reviewing the Companies Act to consider provisions on nominee shareholders and directors to strengthen beneficial ownership reporting.
