STERN action will be taken against business licence holders who “rent out” licences issued by the Iskandar Puteri City Council (MBIP) to third parties, including foreigners.
Iskandar Puteri mayor Datuk Hasrin Kamal Hashim said the council would not compromise with those found violating the licensing conditions.
“The conditions clearly prohibit the licensee from allowing any other party, including foreign nationals, to operate a business using the said licence,” he told StarMetro.
Hasrin said under MBIP by-laws, business and hawker licences cannot be transferred, leased or used by third parties without prior written permission from the licensing authority.
“Operating under a third party’s licence is an offence,” he said, adding that violators may be subject to a compound fine, licence cancellation or court action.
If the licensee were a local woman, but the daily operations of the premises were fully managed by her foreign husband, family assistance in business operations would be permissible, subject to strict compliance with immigration laws and licence conditions, said Hasrin.
“However, if we detect any exploitation of spousal visa, we have full authority to take action against them,” he said.
Hasrin said in such situations, MBIP had the authority to revoke the business licence, seize business equipment and goods, order the closure of the premises and take legal action against the licence holder.
He said the Local Government Act 1976 (Act 171), was the primary legislation empowering local authorities in Peninsular Malaysia to license, regulate and enforce the law.
Hasrin said 42 warning notices were issued to premises for licence breaches while 30 compounds were issued for various offences in 2024.
A total 21 premises were sealed to halt the operations of non-compliant businesses, he said, adding that 47 seizures were conducted on those found to be in violation of regulations.
“Last year, 61 notices were issued as an initial compliance measure, followed by 49 compound actions for continuous violations,” said Hasrin.
In the same period, he said 24 premises were sealed and 12 seizures took place.
Hasrin reminded night market traders that they cannot pass down their licences to family members and must first cancel their existing licences before submitting a new application to trade.
“The condition of the licence requires the named licence holder to be present on-site, operating the business,” he said.
Hasrin said for business premises licences, traders may apply for a change of ownership, provided that the owner’s details have been updated with the Companies Commission of Malaysia.
