ISKANDAR PUTERI: Compounds issued by local councils against foreigners running illegal businesses have risen sixfold this year, says Datuk Mohd Jafni Md Shukor.
The Johor housing and local government committee chairman said RM180,000 was collected this year compared to RM30,000 last year.
“This shows that action against illegal business activities involving foreign traders is being carried out more firmly, aggressively and comprehensively,” he said.
“Between Dec 2024 and Oct 2025, 158 notices, 304 compounds and 552 seizures were recorded,” he added.
Mohd Jafni said this is on top of temporary closures, with yellow tape installed to prevent repeat offences.
He was replying to Tan Eng Meng (BN–Pekan Nanas) at the Bangunan Sultan Ismail on Wednesday (Nov 19).
Mohd Jafni said checks suggest almost 70% of locals rent out their business licences to foreign nationals.
He said most premises are owned by locals but managed by foreign nationals in sectors such as sundry shops, convenience stores and car wash centres.
“The public assumes that we are not taking action. There are no restrictions from the Companies Commission of Malaysia allowing foreign nationals to register businesses,” he added.
Mohd Jafni said a new guideline will be introduced to curb the influx of foreign traders in town, village and Felda areas.
“Local sundry shops are decreasing because they cannot compete with foreign traders selling at cheaper prices,” he said.
“If the commission does not bar foreign nationals from getting licences, councils will restrict operations in certain areas,” added Mohd Jafni.
