Local governments do not allow foreigners to operate as hawkers or small traders

The Ministry of Housing and Local Government has emphasized that local governments do not accept or allow foreigners to work as small vendors or hawkers.

Deputy Minister Datuk Aiman Athirah Sabu (photo) stated that the Hawkers By-laws prohibit foreign nationals from working as employees or assistants under hawker licenses at establishments run by local authorities.

“According to the Hawkers By-laws and the Trades, Businesses, and Industries By-laws, local authorities have never permitted foreigners to apply for or hold licenses for hawkers, small traders, business premises, grocery stores, restaurants, auto workshops, or market stalls.

“This is because the rental rates set by local authorities are below market value and are intended to provide business opportunities for locals,” she stated during Monday’s (Dec 2) Q&A session in the Dewan Negara.

She was answering a question from Senator Datuk Setia Salehuddin about steps to deal with the problem of foreign vendors erecting temporary booths at night markets and along highways.

According to the Trades, Businesses, and Industries By-laws, Aiman Athirah clarified that only Malaysian nationals are granted business licenses and that foreigners may be hired as employees or helpers as long as they possess legitimate work permits or work passes.

“Local authorities will not tolerate violations of licensing conditions by any business or licensee, and stern actions such as confiscation, fines, closure of premises, and license cancellations would be taken,” she stated.

In order to stop foreigners from running enterprises, she added, state governments also contribute to stricter procedures for new license applications and renewals.

Local authorities have revoked 26,108 licenses for violations, including granting licenses or permits to foreign nationals, and carried out 2,031 enforcement activities against commercial establishments since 2022.

Local authorities have implemented a number of complaint channels, including hotlines and the e-Aduan system, which are accessible through PBTCare mobile apps and local government portals, according to Aiman Athirah.

According to her, the Local Government Department of the Housing and Local Government Ministry created PBTCare, which enables people to file complaints with real-time locations and images and get responses from authorities.