KUALA LUMPUR (July 21): Malaysia is looking to further clamp down on illegal business activities involving foreign nationals, including immigration pass misuse, proxy arrangements and leasing out of licences.

A meeting by the special taskforce to facilitate business, chaired by Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir, agreed to an intervention focused on compliance, monitoring and empowerment against illegal foreign business activities, according to a statement.

The approach would involve enhancing vendor compliance, improving data sharing between agencies, implementing risk-based monitoring and strengthening industry capacity to identify and report non-compliant activities, the Economic Ministry said.

The actions from the Ministry of Economy come amid orders from Prime Minister Datuk Seri Anwar Ibrahim last month to conduct a nationwide crackdown on illegal business activities whereby foreigners were reportedly abusing tourist or student visas.

Authorities are also seeking to tackle longstanding practices such as the misuse of visas or immigration passes, the use of proxies, and “Ali Baba” arrangements, where foreign nationals or parties use local intermediaries or licenses to conduct business activities in Malaysia.

The Human Resources Ministry, along with relevant government agencies, will coordinate follow-up actions, while the Ministry of Economy will work on the legislative front to curb rent-seeking practices, including evaluating the need for new laws or amendments to existing regulations.

The latest measures also come as public attention has grown over issues involving foreign participation and compliance with local regulations. In Johor, federal and state authorities are now investigating the Network School in Forest City following allegations that its operations involved the participation of Israeli nationals.