50% equity in all businesses in Kuala Lumpur must be owned by Malaysians starting January 1. 2017

New rulings for KL businesses from Jan 1

(From left) Jaafar and Mohd Sauffi listen as an attendee 

gives his point of view on a matter

 

AT LEAST 50% equity in all businesses in Kuala Lumpur must be owned by Malaysians starting next year, said Kuala Lumpur City Hall (DBKL) executive director (Socio-Economic Development) Datuk Mohd Sauffi Muhamad.

He said businesses that failed to do so will have their business premises licence revoked.

A business owner raising her concerns during the dialogue.

“The Companies Commission of Malaysia currently allows businesses with only 1% of its equity held by Malaysians. We fear a situation where Malaysians will soon have to work for the foreigners.

“Besides that, we also want all businesses to have at least 50% Malaysian staff.

“These moves are to curb the monopolisation by foreigners in businesses, especially in critical areas including Jalan Tun Tan Siew Sin, Leboh Pudu, Bukit Bintang, Medan Pasar, Pusat Bandar Utara, Jalan Chow Kit, Leboh Ampang, Petaling Street, Kuala Lumpur Wholesale Market, Selayang Daily Market, Chow Kit Market, Pudu Market and Keramat Market

“It has come to a point for us to make a radical decision before the situation gets out of hand.

“I am not denying that it will be a difficult to adapt to the changes but I hope the local business community will support this initiative,” he said after a dialogue with the traders and hawkers in Menara DBKL on Nov 24.

Mohd Sauffi said since 2012 to October this year, DBKL enforcement unit had confiscated items from 23,553 foreign hawkers and 544 local hawkers’ licences were revoked for using foreign services during that period

“DBKL has never issued hawkers licence to foreigners and hawkers are strictly forbidden from hiring foreign helpers.

“As of October this year, DBKL has identified 7,400 foreigners working for Malaysian hawkers, who are now at risk of having their licences revoked.

“DBKL has formed a task force to engage the business community over the new licence conditions and educate them on what can and cannot be done.

“From Jan 1, we will go all out to enforce the new rulings,” he said.

Also present at the dialogue was Immigration Department enforcement director Datuk Jaafar Mohamed and DBKL Licensing and Petty Traders Management director Datuk Ibrahim Yusof.

Jaafar said there were two million registered foreign workers and based on his estimation, there were about 600,000 illegal foreign workers in Malaysia.

“In 2015 and 2014, a total of 245,000 and 179,000 illegal foreigners were sent back to their home countries, respectively.

“The high number of illegal foreign workers are also due to the locals hiring illegal foreign workers for the cheap labour and to avoid paying the required taxes.

“I hope the locals will stop hiring them and consider the social and economic implications,” he said.