Hawker stalls setting up ahead of a busy day to provide food for Malaysians of every socioeconomic level. — AZLINA ABDULLAH/The Star
PETALING JAYA: A new paper by Khazanah Research Institute (KRI) has highlighted the crucial role of hawkers in Malaysia’s informal economy while calling for targeted policies to address several pressing issues that hinder their growth.
The paper, Hawkers and Hawking Space in Malaysia: A Case Study, noted that hawkers made up 15% of the informal workforce, which itself accounted for nearly 10% of the total workforce of 15.8 million in 2023, with 73% of hawkers concentrated in urban areas.
The study identified several pressing issues affecting hawkers, including regulatory constraints, limited access to financing and growing competition from formal retail sectors.
“These challenges are compounded by fragmented policies and insufficient institutional support, leaving many hawkers excluded from formal economic systems,” the report said.
Additionally, it said the lack of regulation for some vendors raises concerns about hygiene and food safety, as inadequate access to clean water, waste management and proper facilities increases the risk of food contamination and health hazards.
“Unlicensed hawking also contributes to urban-planning difficulties, such as traffic congestion, pedestrian safety concerns and encroachment on public spaces, which affect townscape management. These issues impact urban aesthetics and place a strain on local authorities trying to balance economic inclusivity with public safety and order,” it added.
To address these challenges, the report outlined several policy recommendations, including streamlining licensing and decentralising approvals to reduce bureaucratic barriers and encourage more hawkers to legalise their operations; developing well-organised hawking spaces in urban areas through inclusive urban planning; and expanding microcredit schemes tailored for hawkers to support business sustainability and growth.
The report also said mobile payments and online marketing there be encouraged to enhance competitiveness and bring about modernisation.
Meanwhile, the preservation of heritage could be helped by designated hawker zones and incentives for traditional vendors, while providing subsidised training and improved facilities would mitigate health risks and build public confidence in street food safety.
Additionally, KRI said there needs to be targeted interventions to support hawkers in less developed states with limited resources; introduction of gender-sensitive policies and capacity-building programmes to promote inclusive entrepreneurship.
“Addressing these issues through targeted policies, such as improved licensing, capital support and urban planning, is essential to sustain the hawking culture in Malaysia’s evolving economy,” the report, prepared by KRI researchers Mohd Amirul Rafiq Abu Rahim and Goh Hao Yi, noted.
“Hawkers remain vital to the informal economy, bridging economic necessity with cultural heritage and contributing significantly to local economic development.
“Hawkers serve as a ‘safety valve’ for employment, providing livelihoods for individuals with limited capital, education or skills and addressing poverty and income inequality.
“By offering fresh and cooked food at affordable prices, they complement formal retail by meeting immediate consumer needs with perishable goods and ready-to-eat meals, making them indispensable to the retail ecosystem,” the report said.
