Family Frontiers said the allegation by Fuziah Salleh also misconstrued the realities faced by such families.
“Such narratives can unintentionally diminish the recognition of Malaysians’ right to choose their spouses regardless of nationality and their families’ ability to earn a dignified living,” it said in a statement.
Fuziah, the deputy domestic trade and cost of living minister, said last week that foreigners seeking to conduct business legally in the country would marry locals.
She said foreigners resorted to such tactics because the Registration of Businesses Act 1956 only permits Malaysian citizens and permanent residents to register sole proprietorships or partnerships.
Fuziah said the ministry often receives complaints from traders who felt threatened by the situation.
Family Frontiers however said that foreign spouses were compelled to run businesses under the name of their Malaysian spouse or find informal work due to their limited access to legal employment.
It said the visas of non-citizen spouses came with a prohibition from employment, even though they might be the sole breadwinner.
Such restrictions led to hesitation among potential employers, many of whom were reluctant to hire someone whose visa explicitly states that they cannot work, even though the immigration department allows employment with an endorsement, Family Frontiers said.
It also asked how non-citizen spouses were to support their Malaysian families and children if they were barred from legitimate employment and faced crackdowns on their family businesses.
“This policy simply shifts the entire financial burden onto the Malaysian spouse, especially a Malaysian wife who will become the sole provider for the family during her child-bearing years, adding unnecessary and immense stress on binational families,” it said.
Family Frontiers said while it understood that Fuziah’s ministry was working to address the issues faced by local businesses, “they missed the bigger picture”.
It said the earnings of these binational families were not siphoned out of the country but were spent on Malaysian goods and services. These families also paid taxes, it said.
“By crippling their ability to earn, Malaysia is not just hurting families, it is hurting the country’s economy as these businesses also pay taxes.”