DAP rep lauds immigration clampdown on unlicensed foreign traders

A DAP assemblyperson has lauded the Immigration Department's action to detain foreigners abusing the visitor international stay admission (visa).

Bagan Dalam elected representative Satees Muniandy (above) said the move is to be "commended, not condemned".

"I’m also appealing to other related government agencies such as Companies Commission of Malaysia (CCM), Inland Revenue Board, Domestic Trade Ministry, Customs and other relevant authorities to step up the enforcement activities to stop these illegal foreign traders from openly defying our laws, " Satees told Malaysiakini.

"I hope such enforcement activities will not stop at sales carnivals alone, but also be extended to markets, night markets, shopping complexes and other places that are now acting as safe havens for the illegal foreign traders," he added.

Satees said he was not opposing foreigners who want to do businesses in Malaysia.

However, they have to obey and abide by all the laws of the country when doing business, he added.

"The CCM should enforce the law more sternly and transparently," Satees said.

Satees was referring to reports about an Immigration Department clamp down on June 7 against illegal foreign traders at the Global Carnival Indian Festival (below) held at Mid Valley Exhibition Centre, Kuala Lumpur.

During the operations, 16 unlicensed foreigners were arrested, but the move was questioned by the carnival organisers, who said seven dealers participating in the carnival had a Professional Visit Pass (PVP), while four others had visitor visas.

Satees said blaming the Immigration Department for carrying out their duty is "totally nonsensical".

He added that if the carnival organisers want some foreign traders to run their business here, they should advise them to abide by Malaysian laws.

"In mega carnivals organised by such event management companies, foreign traders are trading illegally, without acquiring the necessary licence and approvals, while Malaysian traders have to comply with the laws, registering their business with CCM and local councils to run their businesses," Satees said.

"When big event organisers are organising sales carnivals and fairs, they just obtain licences and approvals to organise the said carnival or fair; the individual traders, especially foreigners, are not registered with CCM and do not have the licence to conduct business from local councils," added the first term assemblyperson.

Satees noted that as per the Registration of Businesses Act 1956, any citizen or permanent resident of Malaysia who has a business should register it with the CCM. 

"If a foreigner wants to do business in Malaysia, he has to register a company under the Companies Act 2016.

"Having or running a business without registering it is a crime which can be punished by a fine not exceeding RM50,000 or jail term with a maximum of two years or both, according to Section 12 of Registration of Businesses Act 2016," Satees warned.

"When a Malaysian or permanent resident is registering his/her business, he/she must pay individual income tax.

"If they register a company, the entity is subject to company tax in the range of 17 percent to 24 percent from the profit," he said.

Satees said Malaysians, regardless of whether they operate small or big businesses, have to pay taxes to the Malaysian government.

However, these foreign traders, who are brought by such carnival organisers, do not pay taxes; instead they are enjoying an easy profit, he claimed.

"On the other hand, Malaysian traders are forced to absorb the high cost of operating a business, having to pay income tax, assessment tax, local council licensing fees and CCM fees, among others," said Satees, who was a former Seberang Jaya municipal councillor.

"The carnival organiser’s claim that they’re providing a platform for foreign traders is not only a nonsensical claim, but also raises doubt if carnival organisers like these are assisting foreign traders to flout the country’s laws and regulations," he said. - Mkini