KUALA LUMPUR: Foreign nationals are marrying Malaysian citizens to legally operate businesses in the country through a loophole in existing legislation.
Deputy Minister of Domestic Trade and Cost of Living Datuk Dr Fuziah Salleh told the Dewan Negara that the Registration of Businesses Act 1956 only permits Malaysian citizens and permanent residents to register sole proprietorships or partnerships.
She explained that foreigners exploit this system by registering businesses under the names of their local spouses.
Fuziah acknowledged receiving numerous complaints from local traders who feel threatened by this practice during her ministry’s winding-up debate on the 13th Malaysia Plan motion.
She clarified that these business registrations remain legal since they are processed under the names of Malaysian spouses.
The deputy minister emphasised that business registration restrictions under Act 197 serve to protect local small and medium enterprises from foreign competition.
Fuziah revealed that the Companies Commission of Malaysia currently has no regulations preventing individuals married to foreigners from registering businesses.
She mentioned that her ministry has received public suggestions to restrict business registration for foreign spouses to a specific period after marriage, such as five years.
Enforcement actions against foreign traders require collaboration with the Immigration Department and local authorities since KPDN lacks arrest powers.
Fuziah highlighted that while businesses can hire foreign workers, they cannot serve at front counters, necessitating joint operations with immigration officials during raids. – Bernama
