Kuala lumpur: Marrying locals has been identified as the main modus operandi used by foreigners to conduct business legally in the country, the Dewan Negara was told today. Domestic Trade and Cost of Living (KPDN) Deputy Minister Datuk Dr Fuziah Salleh highlighted this issue, explaining that the Registration of Businesses Act 1956 (Act 197) only permits Malaysian citizens and permanent residents to register sole proprietorships or partnerships.

According to BERNAMA News Agency, Fuziah pointed out that some foreigners exploit this regulation by registering businesses under the names of their local spouses. She suggested that this practice poses a potential threat to local traders, as expressed during her remarks on the 13th Malaysia Plan motion for the KPDN.

Fuziah mentioned that the ministry frequently receives complaints from local traders who feel threatened by this situation. However, she clarified that these business registrations are legally carried out by their local spouses. The intent behind limiting business registration to Malaysian citizens and permanent residents under Act 197 is to protect local small and medium enterprises from foreign competition.

She further noted that the Companies Commission of Malaysia (SSM) does not currently have any regulations preventing individuals married to foreigners from registering a business. In response to public suggestions, Fuziah mentioned the possibility of imposing a restriction on business registration for foreign spouses, such as allowing it only after a set period of marriage, like five years.

Additionally, Fuziah elaborated on the enforcement actions taken against foreign traders, which are conducted in an integrated manner with the Immigration Department (JIM) and local authorities, since KPDN lacks the authority to make arrests. She stressed the importance of proper enforcement, citing instances where foreign workers employed by these businesses are found managing front-end operations, which is not permitted.