Businessmen who hire foreigners to run their shops may face heftier penalties

KUALA LUMPUR (April 26): Local traders found abusing the small business permits by hiring foreigners to run the business will be penalised more than the current maximum penalty of up to RM2,000 and one-year imprisonment, with the proposed amendment to Section 104 of the Local Government Act 1976 (Act 171).

Housing and Local Government (KPKT) Deputy Minister Senator Datuk Raja Kamarul Bahrin Raja Ahmad Baharuddin Shah, said the amendment was proposed following numerous cases.

"According to the Issuance of Small Business Permits by Local Authority (PBT) circular issued by KPKT in 2008 foreigners are not allowed to run small businesses using licences belonging to local residents but some local traders are still misusing this privilege.

"The Government will review Section 104 to raise the existing maximum fine to deter local traders from abusing the permits ... the permit holders should be taking care of their business premises instead of hiring foreigners to run their businesses as this is illegal," he said during question-and-answer session in the Dewan Negara yesterday.

He was replying to a question from Senator Datuk Seri Khairudin Samad who asked on the Government's efforts to tackle the issue of foreigners renting or borrowing the permits from locals to operate their businesses.


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