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18 June 2026

Malaysia intensifies nationwide enforcement measures on visa abuse

The Malaysian Government has announced a nationwide, multi-agency crackdown on visa abuse and unauthorized business activities involving foreign nationals. The directive, issued on 8 June 2026, focuses on misuse of tourist, student and other short-term passes for commercial activities and unauthorized employment. The intensified enforcement is expected to increase inspections, audits and penalties for non-compliant foreign nationals and employers. Businesses employing foreign workers or engaging international assignees (including business travelers and students on internships) may face heightened scrutiny and compliance risks.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.

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Attachment

Full text of Tax Alert

Document ID: 2026-1307

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