Malaysia’s plan to extend a visa-free agreement with China from 30 to 90 days is causing concern among local business owners. Many fear the extended stay could lead to more Chinese tourists working illegally and competing unfairly with local companies.
The mutual visa-free travel policy between Malaysia and China started in December 2023. It allowed tourists to stay for up to 30 days. Now, both countries are discussing extending the stay to 90 days. While this move may boost tourism, many local entrepreneurs are worried.
Small businesses in Melaka hit hard
Alan Neh runs a photography studio in historic Melaka. He is also the chairman of the Melaka Photographers Society. Mr. Neh said he was approached in March by a Chinese national who wanted to rent his studio for tourist photoshoots. But the rent offered was only half the market rate.
“I said no. They don’t have work permits, and they might be trying to steal the local wedding photography market,” Mr. Neh said.
His worries are shared by others in the society. Deputy chairman Jordison Tan said business has dropped by 70% for their 20 members since early 2024. That’s when more Chinese photographers started arriving in Malaysia.
According to tourism data, 3.7 million Chinese tourists visited Malaysia in 2024. That’s a 131% increase from 2023. The photography sector is not the only one feeling the pressure.
Other sectors also facing challenges
The SME Association of Malaysia represents 13,000 businesses. Its president, Chin Chee Seong, said illegal activities are growing. “Some Chinese tour groups bring their own guides. Some car workshops are hiring workers from China. Some even use cheap spare parts.”
He warned that if problems already exist under a 30-day visa, they could get worse if tourists stay 90 days.
Loo Kok Seong, head of the Malaysia-China Chamber of Commerce, agreed. He said local small and medium businesses (SMEs) are worried about “super-low price competitors.” He suggested that Chinese enterprises should work with local businesses instead of operating alone.
“We welcome cooperation. But Chinese companies should register and follow the law,” Mr. Loo told Sin Chew Daily.
Online ads undercutting locals
Social media is also flooded with ads from Chinese photography studios offering cheap packages in Malaysia. One ad promoted two portraits for just RM299 (about $62). In contrast, local studios often charge around RM2,000 for a full package.
One Chinese studio called itself a “China Celebrity Portrait Photographer.” It offered services in Kuala Lumpur, Penang, Johor Bahru, and Kuching. The RM299 deal included two make-up looks and two costume changes. Extra photos cost RM300 each.
These low prices have upset local photographers. According to Mr. Neh, there are around 100 shop lots, 500 studios, and 2,000 freelance photographers in the Malaysian industry.
Some customers are not satisfied
Not all customers are happy with the cheap services. Kommy Yee, a 31-year-old sales executive, visited a Chinese-run studio in Kuala Lumpur in October 2024. She said the staff spoke Mandarin with Beijing accents. Though the studio had many costumes and accessories, she found the experience rushed.
She ended up spending RM5,199—far more than her original budget of RM3,600. “The photos were too edited and didn’t look natural. I won’t go back,” she said.
A chance to adapt?
Veteran photographer Sharkman Beh sees both risks and opportunities. “These Chinese companies offer a lot. But they also raise public interest in portrait photography,” he said. “We can compete by giving a better customer experience.” Still, he warned that tourist visas should not be used for business.
According to Malaysian law, Chinese visitors on tourist visas can’t work, sell goods, or provide paid services. The Immigration Department released a video on April 25 promising stricter enforcement of immigration laws. The department also said it supports visa changes to attract tourists, but only within legal limits.
Policy not yet finalized
The exact start date of the 90-day visa-free policy has not been announced. But many business owners say the damage is already being done.
“We’re not afraid of fair competition,” Mr. Neh said. “But it must be legal. If we ignore this, in 10 years, Chinese businesses will take over.”
For now, local SMEs are calling for stronger monitoring of illegal work and better protection for small businesses. They hope authorities will act before the extended visa policy makes things worse.