The Business Facilitation Task Force (PEMUDAH) is strengthening enforcement measures against illegal business activities involving foreign nationals while accelerating reforms to improve Malaysia’s business ecosystem.
The move was agreed during the PEMUDAH Meeting No. 3 of 2026, chaired by Economy Minister Akmal Nasrullah Mohd Nasir, alongside Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar and Malaysian Federation of Business Associations (FMBA) adviser Datuk Wira (Dr) Haji Ameer Ali Mydin.
The meeting examined concerns over the misuse of immigration passes and visas, the use of proxies, the leasing of business licences and rent-seeking practices, commonly known as "Ali Baba" arrangements, involving foreign nationals.
PEMUDAH said such activities could distort fair competition and threaten the sustainability of local businesses.
The task force agreed to implement an intervention strategy based on the principles of compliance, monitoring and empowerment, known as the 3P approach.
The strategy includes strengthening vendor compliance, enhancing data-sharing and integrated enforcement among agencies, introducing risk-based monitoring mechanisms and improving industry capacity to detect and report violations.
The Ministry of Human Resources (KESUMA), together with relevant government agencies, will further develop and coordinate follow-up measures.
Meanwhile, the Ministry of Economy is refining a proposed legal framework to address rent-seeking practices, including evaluating the need for new legislation or amendments to existing provisions.
The meeting also acknowledged Malaysia’s improved performance in the IMD World Competitiveness Ranking (WCR) 2026, where the country climbed to 15th position from 23rd in 2025 among 70 economies.
The ranking evaluates economies based on four key areas — economic performance, government efficiency, business efficiency and infrastructure.
PEMUDAH said it would continue pursuing targeted regulatory reforms to improve government efficiency, enhance regulatory quality and simplify business processes, including through alignment with the Business Ready (B-READY) framework.
The reforms are in line with Malaysia’s goal of securing a place among the world’s top 12 most competitive economies by 2030.
PEMUDAH, jointly administered by the Ministry of Economy and the Malaysia Productivity Corporation (MPC), remains committed to advancing regulatory reforms and strengthening national productivity and competitiveness through practical, high-impact and results-driven solutions. - July 21, 2026
