Cabinet takes up Semporna illegal foreign business operations issue

The Cabinet has been made aware of illegal business operations conducted by foreigners in Semporna, according to a government minister who raised the issue during discussions on immigration compliance and economic regulation in the eastern Sabah district.

The minister indicated that the exploitation of social visit passes—temporary entry permits intended for tourism and social purposes—represents a significant compliance problem requiring coordinated government action. Foreign nationals have been reportedly using these passes as cover while engaging in commercial ventures, effectively circumventing proper work permit and business registration requirements.

Semporna, a major tourism hub on Sabah's east coast, has become a focal point for monitoring illegal foreign economic activity. The district's popularity with international visitors and its proximity to maritime routes has created opportunities for regulatory violations that authorities say undermine local business interests and government revenue collection.

The elevation of the matter to Cabinet level signals intent to develop a more comprehensive enforcement strategy. Officials have indicated that tighter collaboration between immigration, labour, and business registration agencies will be necessary to address the scope of unauthorised foreign economic participation in the region.