Restaurant Manager and Nine Chinese Nationals Detained in Labuan Over Invalid Permits

Law enforcement officers arrested a restaurant manager and nine Chinese nationals after a raid in Labuan uncovered foreign workers without valid work permits, a move that underscores enforcement exposure for hospitality employers and potential welfare risks for affected staff.

Labuan district police chief Superintendent Mohd Hamizi Halim said the operation was carried out by the Criminal Investigation Division of the Labuan District Police Headquarters and that the nine detained were seven men and two women from China, aged between 18 and 53, who were found working as wait staff and cooks. “Inspections revealed that all the foreign workers, aged between 18 and 53, did not possess valid work permits and are believed to have been employed at the premises since July 2025,” he said.

Police arrested the manager, described only as a local woman, and the nine workers after the raid on Feb 5. “Police arrested all the individuals involved and seized several documents to assist in the investigation,” Mohd Hamizi Halim added in a media statement. He said the matter is being investigated under Section 55B of the Immigration Act 1959/63 and Regulation 39(b) of the Immigration Regulations 1963.

Applications for remand were made at the Magistrate’s Court of the Federal Territory of Labuan on Feb 6 and were granted until Feb 9 to facilitate inquiries, authorities said. “Applications for remand for all those arrested were made at the Magistrate’s Court of the Federal Territory of Labuan on 6 February and were granted until 9 February,” the statement noted. “Investigations are ongoing and the public is urged to channel any information related to criminal activities to the police,” he added.

The arrests will resonate across kitchens and front-of-house operations where labour shortages and tight margins sometimes push employers toward informal hiring. For employers, the case is a reminder that immigration compliance is enforceable and that penalties or disruption from raids can leave a venue short-staffed, affect service and damage reputation. For workers, detention raises immediate concerns about legal status, access to consular assistance, and conditions of employment prior to the enforcement action.

Key details remain unreported: the restaurant’s name and address, the manager’s identity, the content of the seized documents, and whether any of the detained had expired or otherwise irregular papers. Magistrate’s Court hearings and any formal charges after remand will determine the next legal steps.

The incident signals heightened scrutiny of workforce documentation in the sector. Employers operating in Labuan and elsewhere should review hiring records and permit checks, while labour advocates and consular representatives may press for welfare checks for the detained workers as investigations continue.