No more free rides: Malaysia starts stricter vetting of foreign investors to protect local jobs

KUALA LUMPUR, Aug 20 - Prime Minister Anwar Ibrahim has unveiled stricter criteria for foreign investors entering Malaysia, aimed at ensuring their presence genuinely benefits the local workforce and economy. Addressing the media at the TikTok Shop Summit Malaysia 2026, Anwar highlighted concerns over certain companies using Malaysia as a mere transit point, failing to generate any employment or economic advantages.

These companies were flagged by the Ministry of Investment, Trade and Industry (MITI) and ceased, but new applicants are now under closer scrutiny. The PM's remarks came after worries were expressed at the summit about an influx of inexpensive imports on e-commerce sites, potentially endangering local SMEs. Anwar admitted to the rise in such imports despite ongoing enforcement efforts, citing instances of local businesses selling exclusively imported goods and foreign investors renting warehouses in Port Klang without contributing to local jobs.

Anwar agreed that stricter regulations are necessary to prevent an uncontrolled influx of foreign goods, emphasizing that alongside "buy local" campaigns, the system must protect local businesses.