Local governments appear to be oblivious to the illegal businesses run by illegal immigrants. The obvious reason is that the illegals are the easiest prey for the corrupt practices of some enforcement officers.– Letter to Editor, Focus Malaysia
I am sure the authorities are aware of it; but are they really impotent against the foreigners, or are they just turning a blind eye? I am referring to the trend where foreign nationals (some of them illegals), particularly Bangladeshis, Pakistanis, Indonesians and Burmese, have increasingly taken over small-trade businesses in Malaya.
The trend is unsettling local traders and putting their livelihoods at risk. The problem is worsening and threatening to erode the economic foundation that local traders have long relied upon.
I was driving through certain villages in Kapar, Selangor, and I mistook them for a marketplace in Dhaka or Karachi. The overwhelming presence of foreign-run businesses – ranging from sundry shops to car washes – has transformed these once quiet villages into bustling hubs that cater primarily to their own communities.
Some of these businesses are often operated on an ‘Ali Baba’ concept and under the names of local spouses, giving the impression of Malaysian ownership when, in fact, the true operators are foreigners. This deceptive practice allows the foreigners to circumvent regulations and thrive unchecked.
The economic impact of these foreign-run businesses on local traders is serious. Unlike local businesses that contribute to the national economy by paying taxes and spending within the country, the foreigners often send their earnings back home.
Their supply chains, too, are frequently rooted abroad, further depriving the local economy of potential growth. This is not just harmful to local businesses but also to the nation as a whole. Thankfully, I would want to think Sarawak is spared this Malayan problem.
Local traders, who pay taxes, find themselves in an unfair competition with these foreigners, many of whom operate without proper licensing, undercutting prices and attracting customers who are unaware – or should I say indifferent – to the legality of these operations.
The situation is compounded by the fact that the aliens operate their businesses late into the night, long after local shops have closed, further eroding the customer base of legitimate local traders.
One of the most prevalent practices that has allowed this problem to worsen is the ‘Ali Baba’ phenomenon where Malaysians rent out their permits and premises to foreigners. Of course, ‘lazy’ Malaysians, in turn, receive a steady income without having to lift a finger, while the foreigners gain a foothold in the local market.
I am not farfetched when I say this practice has become so widespread that it is now the norm rather than the exception. From sundry shops to eateries and even barbershops, foreign-run businesses are flourishing, often at the expense of local traders who struggle to compete against the unfair advantages these foreign operators enjoy.
The inaction of local authorities, coupled with a lack of political will, has allowed this issue to get out of control. Despite numerous complaints, enforcement remains lax, and the problem persists. Malaysian Federation of Hawkers and Petty Traders Associations chief Datuk Seri Rosli Sulaiman has repeatedly called for stricter enforcement, yet the authorities appear to have largely turned a deaf ear.
The Local Government Act 1976, specifically Section 101(1)(v), which prohibits foreign nationals from applying for permits to operate certain types of businesses, has been in effect since July 2020. However, the enforcement of this law has been woefully inadequate. The aliens continue to run businesses openly, often with the tacit approval of local officials who either lack the resources or the will to enforce the law.
The government’s ‘i-Tegur’ application provides a platform for the public to report illegal foreign-run businesses. However, these measures are only as effective as the enforcement that follows. Without a concerted effort from the authorities to crack down on illegal operations, these reporting tools will remain mere symbolic gestures.
Proliferation of foreign-run businesses is not just an economic issue; it is a matter of national integrity. It sends a message that the authorities are willing to overlook the illegal activities of foreigners while holding local traders to stringent standards. This double standard not only breeds resentment among local traders but also erodes public trust in the government’s ability to protect its citizens’ interests.
Moreover, the influx of foreign-run businesses in certain areas has led to the formation of ethnic enclaves, where foreign nationals dominate entire neighbourhoods. In places like Sungai Buloh, Petaling Street and Selayang, the presence of Bangladeshi, Burmese and Indonesians is so overwhelming that these areas have effectively become ‘kampung pendatang’ or alien villages! This fosters division rather than integration.
Hopefully, the presence of these foreigners is not a subtle effort by the government to reach the 70 million population target as espoused by the Mahathir Administration in the 90s.
The time for complacency is over. The authorities must take immediate action to address the problem. And this includes stricter enforcement of existing laws, more frequent inspections and harsher penalties.
Let’s stamp out the ‘Ali Babas’ and show no mercy on the local traders who rent out their licences to foreigners.
The government must ensure that the enforcement of these laws is consistent and transparent; there should be no room for corruption or favouritism. Local councils, immigration authorities and law enforcement agencies must work together to restore fairness.
At the same time, the public has a role to play. Malaysians must be vigilant and report any suspicious business activities to the authorities.
Act now before it is too late! The future of the small traders – and the integrity of the nation’s economic landscape – depend on it.
The views expressed here are those of the columnist and do not necessarily represent the views of the Sarawak Tribune.
