Kuala lumpur: The issue of foreign nationals abusing visitor and student visas to conduct business in Malaysia requires a holistic enforcement mechanism and tougher penalties to prevent repeat offences. Coalition of Malay Hawkers and Petty Traders Associations of Malaysia (GPPPKMM) president Datuk Zainal Abidin Abdul Majid proposed stricter laws, including banning offenders from re-entering Malaysia for between five and ten years, as well as imposing jail sentences.
According to BERNAMA News Agency, Zainal Abidin emphasized the need for a mechanism to prevent repeated offences. He pointed out that simply confiscating goods is ineffective, as offenders can quickly replenish their stock. He suggested that comprehensive enforcement should be implemented alongside existing legal provisions, such as the Registration of Businesses Act 1956 (Act 197), against foreign traders operating without permits.
Zainal Abidin proposed creating a special integrated unit involving multiple agencies, like the Immigration Department and local authorities, to conduct continuous monitoring and patrols. This approach would replace sporadic enforcement operations with consistent oversight.
He warned that failure to address the issue could undermine the local hawker ecosystem, especially when foreign traders engage in price wars. Foreign traders often sell at lower prices as they do not incur the same costs for taxes, permits, or labor, which puts local traders at a disadvantage.
A Bernama check in the Pudu area, particularly along Jalan Silang, revealed that many business premises are operated by foreign nationals, including roadside hawkers. Taxi driver Wahab Nasir, 71, noted that parts of Pudu Sentral are colloquially known as 'Bangla Town' due to local owners renting out business lots to foreign traders.
Wahab expressed surprise that despite high rental rates, foreign traders manage to sustain their businesses by selling low-cost goods. He described a monopoly ecosystem where restaurants, grocery stores, and even customers are predominantly from the foreign traders' communities.
Foh Loi Kian, an employee of a local business, disclosed that some foreign nationals exploit business licenses registered under Malaysian citizens to operate illegal stalls. This practice has persisted for a long time and has reduced the customer base for local businesses, which face higher operating costs and taxes.
On June 8, Prime Minister Datuk Seri Anwar Ibrahim expressed concern over the increasing number of foreign nationals misusing visitor and student visas to conduct business, particularly in the micro, small, and medium enterprise (MSME) sector. Anwar noted that such practices could adversely affect employment opportunities for Malaysians.