TRADERS in Shah Alam who rent out their premises and lots to foreigners may face a higher compound under revised by-laws by the local authority.
This comes as concerns mount over increased abuse of licences.
Shah Alam City Council (MBSA) has initiated a study to increase the compounds from the current RM300 to RM1,000.
MBSA Enforcement Department director Sahrul Nizam Ahmad said the study was being finalised and would be presented to the top management soon.
“We are looking at what has been done in other cities such as Klang, Subang Jaya and Petaling Jaya,” he said after the full board meeting at Wisma MBSA in Shah Alam, Selangor.
Sahrul Nizam said the MBSA Licensing, Trade and Industry 2007 By-laws were among several rules being reviewed.
During the meeting, several councillors urged MBSA to take firmer action against the “Ali Baba” practice, whereby licensees collect rent from third parties for using their premises or trading lots.
Zone 19 councilor Tengku Ahmad Tengku Kasim said the current compound was insufficient to deter offenders.
“The RM300 amount is too low. Many traders say they can simply wait for discount offers and settle it then.”
Zone 6 councillor Mohd Firdaus Mokhtar proposed the formation of a special task force to coordinate enforcement actions while Zone 22 councillor Muhammad Shakir Ameer Mohideen urged MBSA to work with Immigration Department.
In response, Sahrul Nizam said repeat offenders risked having their wares confiscated by MBSA.
“And if it involves physical premises, the owner might be issued a closure notice for violating the terms of his licence.
“This was recently done during an enforcement operation in Jalan Bukit Kemuning,” he said.
