PIKM urges KDN to review the Private Agencies Act 1971

The Malaysian Security Industry Association (PIKM) has called on the Ministry of Home Affairs (KDN) to review the Private Agencies Act 1971 to facilitate legal action against clients engaging unlicensed security service providers.

PIKM President Datuk Mohammad Ubaidillah Enam @ Iman stated that strengthening the law would also enable prosecution of unlicensed companies that employ illegal immigrants (PATI).

He warned that such unlicensed providers pose serious security risks to individuals, premises, and assets by hiring workers who have not undergone proper background checks.

“These unlicensed operators not only compromise security standards set by KDN but also threaten the integrity and reputation of the industry. More concerning is the negative impact they have on legitimate, licensed companies operating in accordance with the law,” he said in a statement today.

Unlicensed security service providers often offer services at significantly lower rates, as they are not bound by industry regulations and operational costs, he added. This creates unfair competition, weakens the competitiveness of legal businesses, and ultimately harms the industry’s economy.

PIKM also revealed that some businesses falsely present themselves as security service providers by merely registering with the Companies Commission of Malaysia (SSM) without obtaining the required KDN license under the Private Agencies Act 1971.

“One of the key red flags for these unlicensed operators is their employment of PATI,” he said.

To address this issue, PIKM pledged continued cooperation with KDN, the Royal Malaysia Police (PDRM), and the Immigration Department to track down and report entities engaging in illegal hiring practices.