KUALA LUMPUR: The Federation of Hawkers and Petty Traders Association Malaysia is urging the authorities to act against foreigners operating illegal businesses.
Its president Datuk Seri Rosli Sulaiman said the authorities have failed to effectively deal with the issue and should be more sensitive to the matter.
“The authorities are weak and ineffective when dealing with these foreigners. Apart from illegal immigrants, many of those who enter the country on work permits are running businesses on the side.
“This affects Malaysians who pay for business, premises and other relevant licences, apart from annual taxes, to operate their businesses legally.”
Rosli said many foreigners blatantly disregard visa conditions by running illegal businesses, with some continuing to do so even after their visas expired.
“There are also those who run side businesses while working in permitted sectors. This is a violation of the law, but the authorities are not doing much to address the matter.
“Shutting down just a small number of illegal shops and stalls does not solve the problem. Hundreds of them continue to operate illegally throughout the country, which shows poor enforcement.”
He said elements of corruption could also be a problem, adding that the authorities should be transparent when acting against foreigners who break the law, and no leeway should be given.
“It seems that our authorities are more interested in protecting their interests than those of legitimate businesses.”
Rosli also said the practice of foreigners marrying locals just to acquire business licences was tantamount to exploiting marriage for economic gain.
He added that the authorities should listen to the woes of licensed entrepreneurs and act to address their concerns, while lamenting that officers should focus on enforcing the law on errant foreigners and not pick on local businesses.
“Locals who misuse their licences should have them revoked or cancelled, and the owner’s name blacklisted.”
Rosli said while consumers may be drawn to the lower prices offered by illegal businesses, it is important to recognise the impact they have on the economy and society as legitimate businesses must comply with various laws and regulations.
He stressed that the consequences are far-reaching, with unfair competition affecting the profits of legitimate businesses, hindering their growth and potentially leading to closures.
The increase in unlawful businesses, especially after the Covid-19 pandemic, has impacted the revenue of legitimate businesses.
“Many legitimate businesses are struggling against the onslaught of illegal businesses run by foreigners. This is not healthy business competition.”
Rosli said if Malaysian laws appear to favour foreigners over locals, it will inevitably breed discontent and undermine the effectiveness of the legal system.
A Bangladeshi national, who declined to be named, told theSun he obtained a business licence under the name of a Malaysian. This allows him to operate his grocery store in a shop lot in Kuchai Lama, Kuala Lumpur.
“I’m using another person’s licence. I got it through a friend of a friend,” he said, adding that many foreign workers are using similar methods to bypass the legal requirements of obtaining business licences.
He said the practice is particularly common among Bangladeshi nationals in Malaysia. However, he declined to disclose the sum he pays to maintain the arrangement.
Kuala Lumpur City Hall and the Local Government Development Ministry could not be reached for comment as of press time.
