Negri tightens rules to curb businesses run by foreign workers

SEREMBAN: The days of foreign workers running retail and other businesses in Negri Sembilan are numbered after the state authorities developed several measures, including requiring licence holders to display their income tax file numbers on their premises.

The licence holders will also be required to display a tax compliance certificate from the Inland Revenue Board (IRB) as proof that a local runs and manages the business.

State local government development, housing and transport committee chairman J. Arul Kumar (pic) said the state government had no other option but to come up with additional measures as foreigners were starting to monopolise certain retail and related businesses in some areas in the state.

"The Mentri Besar had instructed us to look into this, and a committee chaired by the state secretary met recently to come up with these additional measures.

"Although local councils have never issued licences to foreigners, some locals have leased theirs to them, and this is actually not allowed," he told reporters.

Those applying to renew their licences will also be subject to the new conditions.

He said the additional conditions, endorsed by the state exco, took effect immediately.

Arul Kumar said those applying for a licence from the local council must now furnish their IRB file number before their application can be processed.

He said the licence holder or a local representative must also be present at his business premises during operating hours.

If the licence holder has foreign workers on his payroll, he will be required to display information such as their full name, passport number, nationality, local address, the validity of their work permit and a photograph.

This information, he said, has to be updated regularly.

"Also, only those with valid permits to work in retail and other commercial activities can be hired," he added.

Arul Kumar said each licence holder will only be permitted to run the type of business stated in his application.

He said that based on checks conducted by the authorities, some foreigners ran several types of businesses on-premises, including retail, handphones and grocery sales.

"Under the new rules, foreigners will not be allowed to man the cash register either.

"The relevant enforcement agencies and the IRB have agreed to help us conduct regular checks to ensure only locals operate businesses here," he said.

Arul Kumar said locals running cyber cafes and stalls at pasar malam, pasar tani, Ramadan bazaars, expos and food kiosks in the state are also not allowed to hire foreigners.

He added that locals who violate conditions stipulated in their licence will have it revoked immediately.

They will also be barred from applying for another one for one year.

Arul Kumar admitted that the previous conditions set by local councils for those applying for licences were insufficient to prevent foreigners from setting up businesses.