BUKIT MERTAJAM: The licences bear Malaysian names, but the people running the businesses may be foreigners.
Such proxy arrangements continue to be uncovered by Seberang Perai City Council (MBSP), which has found foreigners operating businesses via Malaysian spouses or other Malaysians.
Seberang Perai mayor Datuk Baderul Amin Abdul Hamid said some business premises were licensed under Malaysians but found to be operated by foreigners.
“Based on inspections carried out by MBSP, there are still Malaysian spouses or proxies present at the counters of business premises.
“We will continue to conduct inspections and take enforcement action against operators found flouting licensing conditions,” he said.
Last year, MBSP issued 473 compounds involving cases where Malaysian spouses or proxies were found manning business counters.
Another 97 compounds were issued from January to May this year for similar offences.
The practice has been detected at grocery stores, eateries and convenience shops serving foreign communities, particularly in areas with large numbers of migrant workers.
Some of these businesses sell food and products from the operators’ home countries, but the person running the premises may not be the Malaysian named on the licence.
MBSP has enforced guidelines since July 2020 to prevent foreigners from operating businesses through Malaysian spouses, nominees or proxies.
The guidelines cover foreign workers and assistants at hawker centres, business premises and hawking activities.
Checks also found 92 unlicensed premises in 2025 and another 13 from January to May this year.
MBSP said it conducted 1,602 inspections from 2024 to 2026, resulting in 756 notices, 2,243 compounds and 297 seizures or closures.
On Penang island, Bukit Jambul, Komtar and Paya Terubong have been placed under closer watch following complaints about foreign-run businesses.
Mayor Datuk A. Rajendran said Penang Island City Council (MBPP) had taken action against 70 businesses since January for allegedly allowing foreigners to operate their premises.
He said foreigners were not allowed to hold council business or hawker licences, which were reserved for eligible Malaysians.
Licence holders must operate the businesses themselves and cannot allow foreigners to use their permits or act as fronts for them, he said.
Rajendran said goods and equipment belonging to illegal foreign hawkers could be seized immediately under the Hawkers By-Law 1979.
“We have received repeated complaints, and MBPP will continue inspections and enforcement operations in these areas, as well as other locations where complaints are lodged.”
However, Rajendran stressed that placing Bukit Jambul, Komtar and Paya Terubong under closer watch did not mean all businesses there were breaking the rules.
Foreigners could legally operate certain businesses from commercial premises if they obtained the required approvals and complied with relevant regulations, he said.
