LOCAL authorities in Malaysia have never granted approval for foreign nationals to apply for or hold business licences of any kind, including for hawking, small-scale trading, shop ownership, retail outlets, or food premises, according to the Housing and Local Government Minister Nga Kor Ming.
Speaking in the Dewan Rakyat on Monday, Nga said the prohibition is firmly in line with existing policies and regulations, namely the Hawkers By-Laws and the Trade, Business and Industry By-Laws enforced by all local authorities (PBTs).
“Under the Hawkers By-Laws, PBTs neither recognise nor allow foreign nationals to operate as hawkers or small traders. Moreover, foreigners are not permitted to work or assist in businesses operating under hawker licences in PBT-regulated premises,” he stated.
“The government is committed to supporting local citizens through business opportunities by offering commercial premises at rates below market value. These facilities are not to be exploited for the benefit of foreign nationals. Never will the government allow a situation where ‘monkeys in the forest are fed while our children starve at home’,” he said, quoting a Malay proverb.
Nga was responding to a question from Mohd Hasnizan Harun (PN–Hulu Selangor), who had asked about the ministry’s policy on the freedom of foreign nationals to operate businesses in Malaysia—particularly in the retail sector—and the government’s stance on premises registered under locals’ names but fully operated by foreigners, including instances where the licence is held by the Malaysian spouse.
The minister, who is also MP for Teluk Intan, emphasised that his ministry takes a serious view of the issue, especially when government-provided facilities meant to empower Malaysians are misused through deceitful arrangements by foreign operators.
He clarified that in Malaysia, foreign companies are only permitted to operate large-scale retail businesses under registered private limited companies, joint ventures, or as franchise partners.
Between 2023 and the present, a total of 3,703 enforcement operations targeting foreign-operated premises have been conducted. These led to the issuance of 14,834 compounds, the cancellation of 23 licences, and the seizure of 2,880 premises over various breaches, including cases where Malaysians unlawfully transferred business permits to foreign nationals.
Nga also underscored the importance of inter-agency collaboration for effective enforcement.
“KPKT and PBTs are always open to constructive cooperation with other enforcement bodies. Integrated efforts involving the Immigration Department and the Royal Malaysia Police are crucial, given that PBT jurisdiction is limited to inspecting premises and business licensing,” he said. - July 28, 2025
