PETALING JAYA: Fully banning foreign freelancers is neither realistic nor desirable in today’s digital economy, with experts urging Malaysia to adopt “smart regulation” that balances openness with protection for local talent.
Universiti Teknologi Mara Economics and Financial Studies senior lecturer Dr Mohamad Idham Md Razak said Asean’s push for seamless mobility and digital trade makes rigid borders around freelance work outdated.
He called instead for clear guidelines covering digital nomads, temporary contractors and remote workers, complete with proper visa categories and tax obligations, to ensure Malaysia attracts high-value talent while protecting locals.
“Malaysia faces some risk of foreign freelancers competing in niche markets, such
as graphic design, content creation and social media management. But this is an opportunity for local creatives to shine through specialisation and higher-quality work.
“While some foreign freelancers may charge less, most clients, especially local businesses and government agencies, value cultural understanding, language, communication and reliability, which Malaysians excel at.”
He added that the real challenge lies not in overseas competition, but in ensuring Malaysian talent is equipped to compete at the highest level.
Recently, Singapore warned businesses against hiring foreign freelancers for creative services, saying it breaches employment laws and undermines local professionals.
The Manpower Ministry and the Visual, Audio, Creative Content Professionals Association stressed that companies cannot hire overseas freelancers for photography, videography, makeup or similar work.
Foreigners on tourist or student visas are barred from offering paid services, and local firms face penalties for hiring them, after complaints that some had been working at weddings and undercutting locals with cheaper rates.
Mohamad Idham said Singapore’s stance highlights the need for clear and consistent rules on what freelance work is permitted.
He added that Malaysia could learn from Singapore’s focus on transparency and predictable penalties, but warned against
overly strict enforcement that might stifle beneficial global collaboration.
“Malaysia could use Singapore’s experience to refine its digital tracking systems, improve public awareness of visa compliance and work with global platforms to flag suspicious long-term activity.
“The goal is not to punish, but to provide clear pathways for locals and foreigners to contribute ethically to the economy.”
He said Malaysia’s focus should be on empowering its freelancers through skill development, access to capital and stronger digital infrastructure, adding that instead of shutting out others, the aim should be to lift everyone up.
He suggested tax incentives for businesses hiring certified Malaysian freelancers, national digital marketplaces to showcase homegrown talent and public procurement preferences for local creators.
“Malaysia’s laws cover foreign work permits, but enforcement is weak as many freelancers operate on tourist visas or through online platforms. Smarter monitoring such as linking payment and immigration data to detect non-residents earning income would help.
“With better coordination and tech-driven systems, Malaysia could ensure fairness without adding unnecessary bureaucracy.”
He added that foreign freelancers should be seen as signals of demand, driving Malaysia to formalise and protect gig workers in building a future-ready economy.
“When local freelancers are recognised, fairly paid and supported with training, they could out-compete unregulated foreign providers, protecting Malaysian talent through empowerment, not exclusion.”
Universiti Malaysia Kelantan Human Resource and Industrial Relations professor Dr Balakrishnan Parasuraman urged Malaysia to avoid a blanket ban like Singapore, favouring a case-by-case approach instead.
He said foreign freelancers could be allowed only if there is a genuine shortage of expertise locally, for instance, in specialised film or makeup roles.
He stressed that Malaysians, regardless of race or background, must always be given first opportunity, ensuring local creatives could grow, compete and gain international recognition.
“Malaysia’s creative industry is producing quality work, from films to dramas and musicals. With the right support, local talent could reach global standards.
“Foreign freelancers, if allowed, should complement rather than replace Malaysian talent, helping to raise the country’s creative profile on the world stage.”