KUALA LUMPUR (Sept 3): Marrying locals has been identified as the main modus operandi used by foreigners to conduct business legally in the country, the Dewan Negara was told on Wednesday.

Deputy Domestic Trade and Cost of Living Minister Datuk Dr Fuziah Salleh said this is because the Registration of Businesses Act 1956 (Act 197) 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 local spouses.

“Perhaps we can discuss how this poses a threat to other [local] traders,” she said while winding up the debate on the 13th Malaysia Plan motion for the Domestic Trade and Cost of Living Ministry here.

Fuziah said the ministry often received complaints from local traders who felt threatened by the situation, but she explained that the business registrations were legally carried out by their local spouses.

The deputy minister said that the registration of businesses, such as retail shops, under Act 197, is limited to Malaysian citizens or permanent residents only, as a measure to protect local small and medium enterprises from foreign competition.

“To date, the Companies Commission of Malaysia (SSM) does not have any regulation barring individuals married to foreigners from registering a business,” she said.

Fuziah 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.

In addition, she said enforcement actions against foreign traders were carried out in an integrated manner with the Immigration Department and local authorities, as the ministry lacked the power to make arrests.

“They can hire foreign workers, but 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.

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