Malaysia

Ban on liquor sales will encourage black market: ex-DBKL adviser

Online sales will blossom, cutting govt out of tax collection, argues Datuk P. Gunaseelan

Updated 4 years ago · Published on 05 Nov 2021 7:00AM

Ban on liquor sales will encourage black market: ex-DBKL adviser
Datuk P. Gunaseelan says a layman generally only buys alcohol at normal shops and cannot afford to buy in pubs or hotels, which is good news for those involved in illicit and smuggled products. – SAIRIEN NAFIS/The Vibes pic, November 5, 2021

by A. Azim Idris

KUALA LUMPUR – Kuala Lumpur City Hall (DBKL) should consider regulating liquor sales in grocers, convenience stores, and Chinese medicinal halls instead of imposing outright bans that encourage illicit trading, said a former senior adviser.

Former DBKL excise licensing board chairman Datuk P. Gunaseelan said the ban of liquor sales in those outlets could give rise to bootleg products while legitimate businesses in the city will have their incomes affected.

He added that authorities must conduct thorough studies and hold consultations with stakeholders before making drastic decisions.

“We can definitely regulate and there is definitely no need for a ban. The business community will not have breathing space (after the ban) as they are just recovering from the Covid-19 pandemic,” Gunaseelan, also a former DBKL advisory board member, told The Vibes.

“A proper study by a professional body has to be done to know the real picture and its adverse effects on the economy.”

On Monday, DBKL issued a statement on the new rules but said customers can still purchase beer at said premises from 7am to 9pm daily.

The ban was supposed to be enforced on October 1 following an announcement on the matter but DBKL had put it on hold pending a study.

DBKL also instructed outlets to provide separate displays and sale areas for alcohol, which must be closed after the permitted hours.

Chinese medicinal halls, it said, must obtain approvals from the Health Ministry to sell mixed or pure liquor for medicinal purposes.

Datuk P. Gunaseelan says Kuala Lumpur City Hall should reconsider the ban as Malaysia is a multiracial country with different religions and cultures. – Datuk P Gunaseelan Facebook pic, November 5, 2021
Datuk P. Gunaseelan says Kuala Lumpur City Hall should reconsider the ban as Malaysia is a multiracial country with different religions and cultures. – Datuk P Gunaseelan Facebook pic, November 5, 2021

The announcement raised the ire of Kuala Lumpur-based politicians from both sides of the political divide who called for a reverse to its ban.

They said the new rules were “very unfair” and had pressured and burdened the non-Muslim community.

Gunaseelan said the trading of liquor did not affect Muslims in general.

“The majority of the customers of the Chinese medical halls are Chinese, and apart from regulated liquor, they sell medical herbs, acupuncture, and other products.

“The government can put (better) restrictions and come up with practical SOPs (standard operating procedures) but an outright ban will be a shock to the business community and the people.”

He also indicated that such a ban would mainly affect those of lower and middle-level incomes.

A layman will only buy alcohol at normal shops and he cannot afford to buy in pubs or hotels. This is definitely good news and a jackpot for those involved in illicit and smuggled products.

“Online sales of alcohol will blossom and the government is going to lose on the collection of tax.”

He added that the tourism industry will lose out as many tourists purchase alcohol from sundry shops or small mini markets.

“This is definitely going to spoil the government’s image. The best solution is to regulate, control, monitor, and allow the business community to breathe.

“They have lost everything over the past year and the government should help them by facilitating their businesses. Many initiatives have been introduced by breweries, such as the Responsible Drinking campaign and so on.”

Gunaseelan also said DBKL should reconsider the ban as Malaysia is a multiracial country with different religions and cultures, adding that the timing of the ban was questionable.

“I hope the Federal Territories minister will consider the requests and pursue a proper study on this. It is also a slap (to us) that this ruling has been enforced during the eve of Deepavali.” – The Vibes, November 5, 2021

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