by David E.
KOTA KINABALU: Nov 7, 2026 – Squeezed Sabah traders are urging the Sabah state government to tighten controls on the length of stay and approval of tourist visas, particularly for Chinese nationals.
The issue returned to the spotlight when Sabah Immigration detained 14 Chinese men at a three-storey bungalow in Kota Kinabalu on 4 November. All of them were aged between 26 and 44 and are believed to have entered Sabah using Social Visit Passes.
According to Sabah Minister of Tourism, Culture and Environment, Datuk Jafry Ariffin, as of 31 January, Sabah recorded 3,793,709 (3.9 million) visitor arrivals and tourism revenue of RM8.74 billion in 2025. China remained the largest market with 657,528 arrivals.
However, behind these figures, local traders face unequal competition. Through the same method of abusing tourist visas, foreigners open businesses in Sabah without licences and now compete directly with local traders. They do not bear rental, salary, licence and tax costs like legitimate traders, thus squeezing local businesses in terms of operating costs.
“The purpose of opening the tourism sector is to drive the state economy and benefit local people. However, we cannot allow foreign criminal elements to enter Sabah and sacrifice public safety, business opportunities and the local economic chain,” said STAR Beaufort Parliamentary Coordinator Jin Tze Vun.
Jin claimed that more and more Chinese nationals are entering Sabah under the guise of tourism, then repeatedly applying for visa extensions to stay for long periods to enable them to run unlicensed businesses, thereby squeezing local traders.
“All renovation construction materials, business equipment and operating supplies are brought directly from abroad. As a result, there is no opportunity at all for local traders, contractors and suppliers to participate in this economy,” he said, giving an example.
In a three-day operation from 30 June to 2 July 2026, Sabah Immigration detained 208 undocumented migrants, including nationals of the Philippines, Indonesia, Pakistan, China and India. Sabah police, meanwhile, detained 341 suspects linked to scam syndicates between January and June 2026; 303 of them were Chinese nationals, with the rest Malaysians, Vietnamese, Taiwanese and Laotians.
Therefore, this issue is not limited to one nationality. It involves the ability of the immigration system to distinguish genuine tourists from those who abuse visas to do business or commit crimes. However, the impact is more significant when it involves groups with large arrival numbers.
Jin urged the state government to tighten controls on the length of stay and approval of tourist visa extensions for Chinese nationals. In this regard, he submitted proposals to the state government to be forwarded to the federal government and the Immigration Department.
Among them are tightening the length of stay and approval of tourist visa extensions for Chinese nationals, rejecting extension applications from individuals without genuine tourism records or suspected of running illegal businesses, strengthening police and immigration cooperation to combat scam syndicates, and protecting the local economic chain.
The call is not without basis. In May 2025, Huazong President and Sabah Chinese Chamber of Commerce and Industry President Tan Sri Goh Tian Chuan revealed that Kota Kinabalu City Hall had received numerous complaints about foreigners, including Chinese nationals, running unlicensed businesses in the city. He said the Mayor at the time expressed concern that the 90-day visa facility would be abused for unregistered business activities.
According to reports by Sin Chew Daily and See Hua Daily in January 2026, Kota Kinabalu Chinese Chamber of Commerce President Loi Yoon Sang also demanded stricter enforcement. He stated that undocumented workers use low costs and non-standard methods to take on contracts, creating serious unfair competition, while emphasising that they do not need to bear quality guarantees and follow-up maintenance responsibilities like locally registered contractors.
The focus should be on enforcement mechanisms, not political dimensions. The question is whether Immigration is able to assess visa extension applications more strictly, and whether cooperation between enforcement agencies and local authorities can be strengthened to ensure that only individuals who genuinely meet visa conditions are allowed to stay longer.
Jin said that as long as this gap is not closed, small traders in Sabah will continue to be squeezed. The tourism benefits touted in macro statistics will not reach them at the grassroots level.
To date, no official figures have been released on the value of economic leakage caused by this phenomenon. Jin, however, stressed: “Any economic activity in Sabah must benefit the people of Sabah.”
As of the time of writing, the Sabah state government and the Immigration Department had not issued an official statement regarding the proposal to tighten tourist visa controls.
– TV Sabah
