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Prostitution in Malaysia is restricted    in all states despite it being widespread in the country. For years, except in wartime, prostitution was only apparent in small areas of George Town , Ipoh , Johor Bahru , Kuantan and Kuala Lumpur , serving loggers, tin miners and sailors. During the Japanese occupation of Malaya in the Second World War , the Japanese set up a number of brothels for their troops to "prevent the rape of local women by Japanese soldiers, to limit anti-Japanese resistance in the occupied area, to protect the soldiers from venereal disease and to avoid international disgrace".
Many local women between 17 and 28 were forced to work in the brothels, employed as what were euphemistically termed " comfort women ". Starting at the end of the 20th century, prostitution has spread over the rest of Malaysia, particularly in the form of massage parlours.
Originally the prostitutes were locals, but there has been an influx of foreign sex workers over the last 10 years. In , the Anti-Vice, Gambling and Secret Societies divisions of the police arrested 12, prostitutes throughout the country, of which 9, were foreign nationals, including 5, Chinese, 2, Thais and 1, Indonesians.
There are no federal laws against prostitution but there are laws against related activities. Section of the Penal Code criminalises soliciting in any place and living on the earnings of a prostitute. Local health regulations prevent health and beauty establishments which includes massage parlours from employing sex-workers. Various other laws such as those against vagrancy are also used against sex-workers.
Kuala Lumpur has a number of red-light districts where street prostitution , massage parlours and brothels can be found. The most upmarket, and probably the best known, is Bukit Bintang. Close by is the Chow Kit area where transgender prostitutes ply at night.