Malaysia prosecutes social visit and Student Pass holders for trading

What the crackdown covers

Prime Minister Anwar Ibrahim has ordered a coordinated nationwide enforcement push against foreigners running or working in businesses while holding tourist, social-visit or student passes, the government confirmed in early June. Anwar said repeated warnings have been ignored and the government can "no longer tolerate" the abuse.

The operation pulls in Bank Negara Malaysia and the Malaysian Communications and Multimedia Commission to trace e-commerce activity and money flows under anti-money-laundering rules. Local councils and the Domestic Trade and Cost of Living Ministry will audit trading licences, Customs will check tax compliance and the Immigration Department will focus on misuse of passes. A January 2026 Cabinet directive against social-visit visa abuse had already set the policy direction, with raids on foreigners staffing restaurants, factories and chalet operations in Sabah's ESSCOM zone running for months.

Who is in the line of fire

Social-visit passes carry no work or business rights. The Home Minister has warned that any foreigner using a tourist, social or visitor pass to trade or take a job faces prosecution, whether they run a café, cut hair, staff a kitchen or operate accommodation through a Malaysian nominee.

Student Pass holders are in the same bracket. The pass covers study only and students who trade online or work without separate authorisation fall under the same "misuse of pass" category.

Digital nomads working remotely for overseas clients aren't the stated target, though the enforcement net creates real exposure for anyone who:

• Rents premises as commercial space or advertises services to Malaysian customers
• Receives local payments or registers a business under a nominee
• Tells landlords, banks or partners they are "running a business" from Malaysia while on a tourist or student pass

Penalties and the legal route

Breaching pass conditions carries fines up to RM10,000, up to five years in prison and possible whipping. Employers or local partners who harbour illegal workers or front licences face RM15,000 to RM100,000 in fines and two to 10 years in prison.

Foreigners who need to work or trade legally must hold the matching pass: an Employment Pass, a Professional Visit Pass or short-term authorisation under PLS@XPATS through Immigration's Expatriate Services Division. The Student Pass itself costs RM60 per year, with dependant social visit passes at RM90 and confers study rights only.

Read our full Malaysia guide for the complete picture and follow ongoing visa updates for enforcement developments.