Malaysia

Foreign visitors abusing social visit passes to run businesses, says Home Minister

Crackdown uncovers 81 illegally operated chalets and nearly 55,000 individuals inspected as Putrajaya vows tougher enforcement against misuse of entry permits

Updated 6 months ago · Published on 12 Feb 2026 1:51PM

Foreign visitors abusing social visit passes to run businesses, says Home Minister
Investigations reveal that some foreigners were entering the country on social visit passes before partnering with local associates - February 12, 2026

HOME Ministry has uncovered widespread abuse of social visit passes by foreign nationals operating businesses through local proxies, including in tourism, hospitality and interior design, prompting renewed calls for stricter enforcement.

Home Minister Datuk Seri Saifuddin Nasution Ismail said investigations revealed that some foreigners were entering the country on social visit passes before partnering with local associates and using their business licences to run commercial operations — a clear breach of immigration laws.

“Issues involving social visit passes — they (foreign nationals) enter and then misuse them. As a result of our enforcement actions, we have detected several business activities. For instance, these foreign nationals obtain local business partners and use local licences; they may be the capital providers.

“But if they wish to conduct business, they must apply for the appropriate pass to enable them to do so. If they enter using a social visit pass, even if they have a local business partner, that is against the law and we will take action,” he said.

The minister said the practice had been detected across multiple sectors, including services and tourism, as well as interior design, restaurants and furniture manufacturing.

Among the most significant findings were cases involving tourism facilities in areas under the Eastern Sabah Security Command (ESSCOM), where foreigners were found to be operating accommodation businesses.

“I have already informed the Cabinet of our enforcement actions, where the business model of these foreign nationals is that they enter with a local partner and then operate the business themselves.

“The number reaches 81 chalet units, and that certainly affects local entrepreneurs who comply with the law,” he said.

Saifuddin stressed that the situation had not arisen overnight and called on local authorities to be more vigilant in monitoring new developments within their jurisdictions.

“They must be alert. If such facilities are being developed, surely action can be taken immediately. But when we requested ESSCOM to carry out enforcement action, we obtained those figures.

“This is among the examples where we are taking investigative action. If our investigations later involve travel agents and others, we will ‘zoom in’ on every direction of our investigations to identify the source and the perpetrators,” he added.

The issue has drawn attention at the highest level of government. Prime Minister Datuk Seri Anwar Ibrahim has called for firm enforcement measures against foreign visitors found to be misusing social visit passes to work in Malaysia.

Government spokesperson Datuk Fahmi Fadzil said the Cabinet, chaired by the Prime Minister, had been briefed on the latest enforcement actions and arrests linked to such offences.

Based on information shared by the Home Ministry, a total of 54,791 individuals have been inspected and subjected to action overall in connection with the misuse of social visit passes. - February 12, 2026

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