Azman: Ban will inadvertently create an underground alcohol market that will be challenging to regulate.
BANNING the sale of liquor completely is bad for business as it not only results in revenue losses for Kuala Lumpur City Hall (DBKL), but will also inadvertently spur the illicit alcohol trade, says Datuk Azman Abidin.
The political secretary to the Prime Minister added that if the local authority prohibited something completely, people would seek other ways to sell liquor, causing loss in tax revenue, licensing and premises permit fees.
“An outright ban on liquor sales could even foster an underground market that would be challenging to regulate, potentially leading to the production of unsafe products," Azman said.
He was commenting on a statement by Federal Territories PAS Youth information chief Abdul Razak Ramli who had objected to the lifting of the ban on the sale of liquor in certain premises in the city, saying it was “disappointing” as it would lead to more social problems.
DBKL had previously issued liquor licence guidelines effective Nov 15, 2020, which banned the sales of liquor at grocery stores, convenience stores and Chinese medical halls from Oct 31, 2021.
Following this, many businesses with licences that expired in 2021 were not allowed to renew them. However, no enforcement was carried out on the ban.
Azman said the decision to impose a ban on liquor sales in specific premises within Kuala Lumpur were made by the previous administration.
“It was a bad business move, which is why now we still permit liquor sales.
“However, we exercise strict control over the issuance of new licences and renewals for liquor sales at grocery and convenience stores as well as Chinese medical halls within the city,” he said.
Kuala Lumpur, he said, served as the capital city and was a top tourist destination.
“Such bans could adversely affect tourism, deterring potential foreign visitors from choosing this destination if they hear of these restrictions.”
Azman said preparations were underway to commemorate the Federal Territories’ 50th anniversary celebration next year.
“We want to encourage people to visit and spend time here to contribute to the city’s economic growth, not chase them away,” he added.
StarMetro had on Nov 29 reported that affected businesses in the city whose licences had long expired could continue selling hard liquor by applying for licence renewals.
Excise Licensing Board of the Federal Territory of Kuala Lumpur (ELBKL) chairman Dr Ronald Pua had said then that this was only as long as the businesses adhered to regulations.
Pua clarified that there was no blanket prohibition on liquor sales and applications were evaluated on a case-by-case basis.
“As long as applicants comply with the stipulated requirements, including obtaining the necessary permits and licences, their requests to sell liquor will be reviewed,” he had told StarMetro.
On Nov 23, ELBKL renewed 1,519 liquor licence appli- cations, including those from Chinese medical halls and convenience stores.
Additionally, the board received 513 new applications for liquor licences.
The decision effectively reversed a 2021 ruling by the Federal Territories Ministry (now known as Federal Territories Department), which had prohibited certain outlets like sundry shops, convenience stores and Chinese medical halls from selling hard liquor.
DBKL also issued a statement saying that the sale of liquor in the concerned places was still subject to set guidelines.
It warned that failure to adhere to the rules would result in licence revocation.
