Foreigners seeking to conduct business legally in the country mostly marry locals, the Dewan Negara was told today.
Deputy domestic trade and cost of living minister Fuziah Salleh said this is because the Registration of Businesses Act 1956 only permits Malaysian citizens and permanent residents to register sole proprietorships or partnerships.
“However, there are foreigners who take advantage by registering businesses under the names of their Malaysian spouses.
“Perhaps we can discuss how this poses a threat to other (local) traders,” Bernama reported her as saying while winding up the debate on the 13th Malaysia Plan for her ministry today.
Fuziah said the ministry often received complaints from traders who felt threatened by the situation, but she explained that the business registrations were legally carried out by their Malaysian spouses.
She said the registration of businesses, such as retail shops, under the Act was limited to Malaysian citizens or permanent residents, to protect local small and medium enterprises from foreign competition.
“To date, the Companies Commission of Malaysia has no regulations barring individuals married to foreigners from registering businesses,” she said.
She said her ministry had received several suggestions from the public, including restricting business registration for foreign spouses to a set period after marriage, for example, only after five years.
She also said enforcement action against foreign traders were carried out together with the immigration department and local authorities, as her ministry lacked the power to make arrests.
“Sometimes, when we conduct raids, these foreign workers are found sitting at the front counter. That is not allowed, and since the ministry lacks the authority, we have to call the immigration department,” she said.
