DBKL’s new licence fees too high, say cybercafe owners

CYBERCAFE owners in Kuala Lumpur are upset over the new licence fees imposed by Kuala Lumpur City Hall (DBKL).

The new fee guidelines require each cybercafe to pay RM150 for each computer.

Kuala Lumpur and Selangor Cybercafe Association president Michael Chan Chun Tat said the fees, which included an additional RM150 security deposit for each computer, was too much of a burden for cybercafe operators.

“If a cybercafe operator has 70 computers, they will need to pay RM10,500 each year.

“Also, we have to pay another RM150 per computer, which amounts to RM21,000 per year.

“It is not reasonable for us to pay such a huge amount because we have to pay the monthly rental, bills and staff wages,” he said.

Chan said before 2007, cybercafe operators had to pay only RM400 to renew their signboard licence and about another RM400 to renew the licence of their premises.

“When DBKL froze the licences for cybercafes from 2007 to 2014, we still paid only RM400 to renew our signboard licence.

“We do not mind a 30% increase on the licence fee, but this amount is double what we used to pay. It is too much,” he said, adding that they had sent appeal letters to the mayor on May 11.

Chan added that the association and other cybercafe operators were issued a letter by Oracle Synergy Sdn Bhd – an agent in charge of licence fees collection by DBKL - in March to abide by the regulation or face charges.

Despite the association’s efforts to negotiate with DBKL through several appeal letters, five cybercafes in Kepong were raided by DBKL officers on May 19 because they failed to acquire the licence.

Raided by 100 DBKL officers, DNA Internet cybercafe operator Benny Lai, 51, said he was given one hour to pay the licence fee or they would take away the computer processing units (CPUs) in his store.

“I had no choice but to pay RM17,250 to get the licence immediately. Otherwise, they would shut down my business,” said the cybercafe operator of 10 years.

Unable to make the licence fee payment on time, cybercafe operator in Metro Prima, Jerry Teh, 26, said DBKL officers seized 50 CPUs from his outlet.

“They gave me one-and-a-half hours to make the payment, but by the time I came back with the new licence receipt, they had taken away the CPUs. I am forced to close my shop for two weeks until they return the units,” he said.

Worried about having his premises raided for the first time, UK Internet Connections cybercafe operator Ravi Singaram, 50, said he was hoping DBKL would review the new licence fees.

“I am already paying almost RM20,000 a month on rental, staff salaries and electricity bills just to run one cybercafe in Taman Maluri.

“There are 50 computers in my shop and I do not earn much to pay the licence fee now,” said the cybercafe operator of eight years.

Segambut MP Lim Lip Eng said DBKL should negotiate with the Cybercafe Association to determine a suitable amount before imposing the new licence fees.

“More than 80 cybercafe operators had signed and sent letters to DBKL to protest against this new licence fee. DBKL should have consulted them before enforcing the new licence or even raiding their premises,” he said, adding that he would speak to Deputy Federal Territories Minister Datuk Dr Loga Bala Mohan in Parliament over the matter.

A DBKL hawker licensing and management department spokesman explained that the new licensing fees was implemented according to the Cybercafe and Cyber Centre Guidelines 2012, under the Entertainment Act 1992.

“Before 2002, we did not have the guidelines of the Entertainment Act to impose licence fees, but now we do and we are implementing them.

“The security deposit, which is RM150 per computer with a maximum of RM50,000, is in place because cybercafes are classified as high-risk entertainment.

“Cybercafe operators can plead their case with DBKL to reduce the security deposit amount but the licence fee will remain unless we get special instructions from the mayor,” said the spokesman.

On the matter of licence fee enforcement, the spokesman added that Oracle Synergy was authorised by DBKL to look into the licensing matter and its commission was paid by DBKL and not borne by any individual party.