Malaysia’s small businesses see red over plan to extend visa-free scheme for Chinese visitors

Fear of the newcomers is also fuelled by their “neijuan”, or overcompetitive attitudes, honed by tougher operating conditions in China.

Lu Wei Hoong

Lu Wei Hoong

The Straits Times

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Melaka Photographers Society chairman Alan Neh (left) and deputy chairman Jordison Tan are among the one million micro, small and medium enterprises in Malaysia who are worried about visa-free visitors from China muscling into their business. PHOTO: THE STRAITS TIMES

May 6, 2025

MELAKA/KUALA LUMPUR – Malaysia and China’s plan to extend a mutual visa-free scheme from 30 days to 90 days will mean more tourists flocking to historic Melaka, but local photography studio owner Alan Neh is not celebrating.

Like many small business owners in Malaysia, he is concerned that the growing influx of mainland Chinese will lead to people working illegally while on tourist visas, and disrupting his livelihood.

In March, Mr Neh, 40, was approached by a Chinese national offering to rent his studio as a changing and make-up area for Chinese tourists doing photoshoots. But Mr Neh rejected the offer, which was only half the prevailing market rate.

“Firstly, how could they operate here without a legal work permit? Secondly, they might be targeting the local wedding photography market, which is the primary source of income for our members,” Mr Neh, who is also chairman of the Melaka Photographers Society, told The Straits Times.

Fear of these newcomers is also fuelled by their “neijuan”, or overcompetitive attitudes, honed by tougher operating conditions in China.

Echoing Mr Neh’s concerns, deputy chairman Jordison Tan said the society’s 20-odd members have experienced a 70 per cent drop in business in the past 1½ years due to competition from mainland Chinese photographers operating in Melaka.

“It all started from around 2024,” said Mr Tan, 38, referring to the start in December 2023 of a mutual 30-day visa-free travel scheme between Malaysia and China, which drew around 3.7 million mainland Chinese tourists to Malaysia in 2024 – a 131 per cent increase from 2023.

Photographers Mr Neh and Mr Tan are among the one million micro, small and medium enterprises (MSMEs) in Malaysia who are worried about visa-free visitors from China muscling into their business.

MSMEs, which account for nearly half of Malaysia’s workforce, are feeling the strain from the China visitors, and it goes beyond the photography sector. Businesses such as tour guide services, auto workshops, renovation contractors and beauty salons are also affected, said SME Association of Malaysia president Chin Chee Seong.

“Some mainland Chinese tour groups bring in their own guides, which is clearly illegal. Some auto workshops here are using cheaper spare parts and workers from China.

“If the impact is already significant with a 30-day visa-free stay, imagine the consequences if that extends to 90 days,” said the Selangor-based Mr Chin, who represents 13,000 SME members nationwide.

Malaysia-China Chamber of Commerce president Loo Kok Seong said local SMEs are concerned about the influx of “super-low price competitors” if the 90-day visa-free policy for Chinese tourists takes effect.

“There is nothing wrong (with Chinese enterprises) seeking business opportunities here, but we prefer a cooperative model with local businesses to align with the principle of sustainability,” Mr Loo was quoted as saying by Sin Chew Daily on May 4.

Mr Loo, who represents 2,000 members, added that mainland Chinese enterprises should be properly registered and operate legally in Malaysia.

In the meantime, Malaysian consumers have been inundated with social media advertisements offering low-priced packages for portrait shots by China-based businesses. This cut-throat rivalry has drawn complaints from Malaysia’s photography industry, which comprises 100 shop lots, 500 studios and 2,000 freelance photographers, according to Mr Neh’s estimates.

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A viral social media post on April 23 by a local freelance photographer lamented that mainland Chinese photographers were offering to Malaysian customers lower-priced basic packages comprising two portrait shots for just RM299 (S$92). This raised eyebrows among local photographers and studios, which typically offer packages that start from around RM2,000 for 30 photos.

One mainland Chinese outfit styling itself as a “China Celebrity Portrait Photographer” posted on social networking sites Instagram and Xiaohongshu, offering its services in Kuala Lumpur, Penang, Johor Bahru and Kuching. Its RM299 basic portrait package includes two make-up looks and two costume changes, with additional photos priced at RM300 each.

Anecdotal evidence, however, shows that local photographers can still compete on service, if not pricing.

One disgruntled customer is sales executive Kommy Yee, 31, who patronised a photo studio in Kuala Lumpur in October 2024. She said the team of 15 comprised make-up artists and photographers who spoke Mandarin “with a Beijing accent”.

While she was impressed with the wide variety of attire and accessories available, Ms Yee said the three-hour session felt rushed and involved aggressive sales tactics. In the end, she spent RM5,199 – well over her original budget of RM3,600 – and found the heavily AI-edited photos unnatural and not to her liking. “I won’t be going back,” she told ST.

On the plus side, these mainland Chinese set-ups are well-equipped, with bigger teams and a broad range of outfits and costume jewellery options for portrait photography shoots, noted veteran photographer Sharkman Beh, 37, who has 15 years of experience under his belt.

“China has helped raise awareness of portrait photography. With more people exposed to their (working) model, we have a chance to offer a more refined customer experience,” he said, adding, however, that tourist visas should not be used for business purposes.

Under the current visa-free arrangement, Chinese nationals are allowed to enter Malaysia strictly for social visits, but are not permitted to work, engage in direct sales nor distribute goods.

In a video posted on its Facebook page on April 25 addressing the issue of overstayers, Malaysia’s Immigration Department emphasised its commitment to strengthening national security by enforcing immigration laws, while also supporting the easing of visa terms for visitors from China.

ST has approached the Immigration Department and Home Affairs Ministry for their response on the issue of tourists working or doing business illegally in the country.

For now, the start date of the 90-day visa-free scheme for Chinese visitors has not been fixed. But for Mr Neh, the damage to his 16-year-old business has begun.

“We don’t fear competition, but it should follow the right channels. I worry that if these issues aren’t tackled, mainland Chinese will be the boss in our land by the next 10 years,” he said.

  • Lu Wei Hoong is Malaysia correspondent at The Straits Times. He loves to travel and discover hidden gems of stories.
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