NST Leader: The shadow economy Malaysia can no longer ignore

Malaysia's migrant workers have skillfully established and managed illicit businesses, despite being confined to sectors like manufacturing, construction, agriculture, and household duties. Driven by their determination to survive and succeed in an unfamiliar land, these workers operate unlicensed shops, digital platforms, and eateries, while also engaging in the contraband trade and recruiting others into unauthorized sectors.

The lax enforcement and local traders' willingness to rent municipal licenses have allowed this underground economy to flourish, generating significant funds through remittances estimated at RM61 billion annually by Bank Negara Malaysia.

To combat this illicit system, the Inland Revenue Board launched the Foreign Taxpayer Branch, coordinating immigration actions with data analysis and monitoring of money laundering, terrorism financing, and other illicit activities. This has led to nationwide enforcement operations, such as the multi-agency crackdown in Lebuh Pudu to dismantle illegal clinics exploiting visa abuses and other illegal practices.

However, the sustainability of such enforcement remains uncertain, and regular inspections, intelligence-sharing, and monitoring are needed to maintain progress.

The authorities must delve into the migrant workers' supply chains for unregistered medicines and identify their financiers or protectors. The Health Ministry bears the responsibility of determining whether these raids are merely the beginning of a more systematic crackdown on illegal healthcare businesses. Many foreign workers, especially from Indonesia and Bangladesh, have realized the "Malaysian Dream," a goal that eludes most locals.

The root cause of this issue lies in the reluctance of Malaysians to take on jobs deemed "dirty, dangerous, and degrading." To prevent a potential backlash becoming radical, aggressive, or even violent, the shadow economy must be dismantled before it escalates further.