Malaysia

Pemudah tightens action against illegal foreign business activities

The task force aims to strengthen Malaysia’s competitiveness while pushing forward regulatory reforms to create a fairer, more transparent and competitive business environment

Updated 2 months ago · Published on 21 Jul 2026 5:49PM

Pemudah tightens action against illegal foreign business activities
The Business Facilitation Task Force (PEMUDAH) is stepping up efforts to tackle illegal business activities involving foreign nationals - July 21, 2026

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

Spotlight

Malaysia

Immigration busts international scam syndicate operating from unused Kuantan resort

Malaysia

Malaysia prevents RM1.9b in scam transactions as BNM targets real-time fraud alerts

Malaysia

Parental involvement crucial in tackling school bullying, says PM as cases hit nearly 5,700

Malaysia

19-year-old female student strangled to death in Kuantan following quarrel; boyfriend arrested

Malaysia

Loke slams 10 Negeri Exco members for ‘backstabbing’ Tuanku Muhriz

Malaysia

Vandalism at mosque: Blaming the MADANI govt ‘unfounded and ridiculous’ (video)

By Alfian Z.M. Tahir

Malaysia

MOHE: 1.16 million PTPTN borrowers owe RM10.7b in outstanding repayments

Malaysia

Police: Statements recorded after 13-year-old student sustains severe injuries in three-storey fall

You may be interested

Malaysia

Irene Sofiya died from blunt-force head injuries, post-mortem confirms

Malaysia

National security, student safety, and cross-border haze top Dewan Rakyat agenda

Malaysia

LCS 1 risks handover without full combat capability, readiness could slip to 2035

Malaysia

Petaling Jaya parliamentary seat officially declared vacant after MP quits - Speaker

Malaysia

National Ageing Action Plan targeted for tabling in this Parliamentary sitting

Malaysia

Inter-monsoon surge drives 2.5x spike in Malaysian lightning fires - Fire and Rescue Department

Malaysia

Ischemic heart disease remains the leading cause of death in Malaysia

Malaysia

Bersama’s Selangor target difficult to achieve if party goes solo, says analyst

By Alfian Z.M. Tahir