Rice bowl under threat: Shops along Jalan Silang in Kuala Lumpur where many of the businesses are run by foreigners. — AZMAN GHANI/The Star
PETALING JAYA: The widespread involvement of foreigners operating small-trade businesses illegally in the country is jeopardising the livelihood of local traders but enforcement is seriously lacking, say local operators.
They point out that the occurrence is especially rampant around markets in the Klang Valley as well as farms and towns in Cameron Highlands.
Malaysian Federation of Hawkers and Petty Traders Associations president, Datuk Seri Rosli Sulaiman said there is insufficient enforcement and political will to curb the practice.
He said there are many foreigners who are illegally operating as hawkers and in the small trades as well as in the services sector, carrying out maintenance, repair and construction works.
“We should not allow local traders to rent out their premises or give out their licences to foreigners and let them set up shop illegally,” he said.
He said local traders in markets around Kuala Lumpur and Selangor face stern competition from these foreigners.
“These small traders have suffered financially during Covid-19 lockdowns and with this happening, they can only earn a meagre income now.
“They complain that foreigners are setting up shop illegally only a few kilometres away from local markets such as in Selayang, Chow Kit, Pudu, Datuk Keramat and others, with some local traders being forced to close down.
“Sungai Buloh has become a ‘village’ for Bangladeshis, while in Petaling Street and Selayang, they are dominated by Myanmar nationals, while houses in Chow Kit and Kampung Baru are mostly rented by Indonesians,” he said.
Rosli urged the government to conduct strict enforcement to bar foreigners from being directly involved in the hawker and small trade sectors.
“If we want to allow them to be involved in petty trade businesses, then proper rules and regulations must be adhered to.
“We need the local authorities, police, immigration and registry to take stern action towards all the illegal foreigners involved,” he said, lamenting the lack of serious action by the authorities despite numerous complaints and claimed that the law only regulates local traders but not foreigners.
Rosli also noted the outflow of funds from the country through these foreigners.
“They only spend a little in our country; the money is moving out instead of being spent for the good of this country,” he added.
The Section 101(1)(v), Local Government Act 1976 ruling, which came into effect on July 20, 2020, prohibits foreign nationals from applying for a licence to operate 20 types of businesses including hypermarkets, supermarkets, sundry shops, petrol stations and laundry services.
Petaling Street trader, Simon Ang said it is very common to see foreigners operating businesses in the heart of Kuala Lumpur.
“Either they rent the premises or the owner hires them. The owner can claim that the foreigner is his worker, but in actual fact, they rent out the shop to the foreigner,” he said, claiming that there will be a local who will be willing to sign a tenancy agreement with the landlord, but foreigners will run the business.
“The local will then just take the fees but not be directly involved in the business,” he said.
Ang said that occasionally, there is enforcement by the local authority to close down such businesses, but they will later reopen in either the same or a different location.
He added that the situation is most apparent around the Kota Raya Complex, where many foreigners of various nationalities operate all kinds of businesses such as grocery stores, logistics or courier services, money changers and telephone shops.
He called for serious regulation and transparency to stem the practice.
“Let the public know the guidelines. The government could also set a ratio of locals to foreigners working in a shop; if it is all operated by foreigners, it will be illegal and official reports can be made,” he said.
Regional Environmental Awareness Cameron Highlands president, Dilip Martin said in towns in Cameron Highlands, foreigners are operating sundry shops, salons, accessory shops and restaurants.
“These businesses are operated by foreigners, especially Bangladeshis, but there are those who are married to locals in Cameron and running their businesses under their wives’ names,” he said.He added that recently, foreigners have become more involved in farming.
“They rent the land from local farmers and operate the farms themselves.
“Some lease these farms for five to 10 years and have a sort of profit sharing arrangement with the locals,” he said.
Dilip said it is time the local authorities stepped up enforcement and not take the issue lightly.On Aug 23, 18 business premises operated by foreigners were sealed in an operation by Kuala Lumpur City Hall (DBKL) for operating without a permit or licence.
DBKL said enforcement action will be carried out from time to time in all 11 parliamentary constituencies in Kuala Lumpur.
