Malaysia tackles illegal foreign-owned firms, as regional crackdown widens

Malaysia ordered a crackdown on Monday against illegal businesses run by foreigners, joining a growing list of Southeast Asian nations rocked by similar operations amid simmering local resentment.

In recent years, Thailand, Vietnam, Malaysia and Indonesia introduced visa-free entry for foreign visitors following the Covid-19 pandemic in a bid to revive their flagging tourism, property and investment sectors.

But last month, Thailand removed the 60-day visa-free entry for 93 countries and territories in response to foreigners buying companies and citizenship illegally, and to curb foreign ownership of its land. Instead, it introduced a 30-day visa exemption for 54 countries and territories and a 30-day visa exemption for three countries and territories.

The moves by Thailand to tighten entry by foreigners come as Vietnam and Indonesia are also planning to introduce pre-travel registration of visitors, after a series of grisly crimes committed by tourists raised fears of overseas gangsterism spilling over to their territories.

Police in Indonesia have carried out raids against gambling and crime syndicates that are aiming to use the country as a new base for their illegal operations. Authorities have arrested hundreds of foreign nationals in Jakarta, Batam, Bali and Surabaya during their crackdown in recent weeks.