Business licenses risk being revoked if leased to foreigners, Economy Ministry warns

KUALA LUMPUR: Business licenses may be cancelled if they are leased to foreign workers in violation of conditions stipulated in local authority regulations, the Economy Ministry says.

The ministry said foreigners are not allowed to apply for or hold licenses for street vendors, small traders, commercial premises, grocery stores, restaurants, auto workshops and market stalls, under the Commercial, Business and Industrial Licensing Regulations.

“Despite existing regulations, weaknesses such as lenient penalties and a lack of enforcement have led to widespread violations,” the ministry said in a written response published on the parliament’s website on Thursday (July 11).

The Ministry of Economy is studying measures to enact an anti-rent-seeking law to address the causes, problems and challenges of rent-seeking.

“The government is conducting a study to prepare the framework for the anti-rent-seeking law.

“This study aims to identify the specificities of rent seeking and the actions needed to strengthen its application,” the ministry added.

The Anti-Rent-Seeking Bill aims to address the lack of comprehensive and effective legislation to curb rent-seeking.

Existing laws such as the Anti-Corruption Commission Act 2009, the Competition Act 2010, the Companies Act 2016 and various regulations are found to be inadequate, he said.

The ministry’s statement was in response to Datuk Ahmad Amzad Mohamed @ Hashim (PN-Kuala Terengganu), who inquired about the government’s specific approach to the anti-Ali Baba law, including measures against parties leasing business licences to foreign workers without meeting the prescribed conditions. – Bernama