Malaysia s small businesses see red over plan to extend visa free scheme for China visitors

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,