BUKIT MERTAJAM: Thousands of foreign workers employed in the surrounding industrial zones have turned this old trading town into a thriving commercial hub for migrant communities.
Due to this, businesses catering to their daily needs have flourished, supported by established wholesale networks and a ready customer base.
Businessman SC Teh said while local traders might struggle to sustain shoplots renting for RM4,500 a month, foreign operators were willing to pay RM7,000 to RM8,000 for premises in strategic locations.
The difference is in their business models and customer base.
“About nine out of 10 of these businesses in central Bukit Mertajam are involved in wholesale trading.
“They sell basic food items such as onions, potatoes and rice with mostly foreigners as their main customers.
“They have an established market and their own network of suppliers and customers, including container shipments from Kuala Lumpur,” he said.
Teh, 45, said these operators were also willing to work long hours with some operating around the clock.
Their wholesale networks and steady demand from migrant communities had created an ecosystem that helped similar businesses thrive, he added.
Local-born Antony Lee, 58, said foreign workers need everyday essentials, including food products and ingredients familiar to their home countries.
He said the town’s proximity to major industrial areas, including Perai, Juru and Bukit Minyak, also worked in their favour.
“Businesses serving these needs can tap into an established market rather than having to build one from scratch.
“The growing foreign population has also changed the surroundings with more shops catering to migrant communities,” said the former food wholesaler.
Lee said at least three large buildings, including two former hotels, had been converted into workers’ hostels, collectively housing thousands of foreign residents.
“Many businesses are clustered around these accommodations where workers can buy groceries, obtain daily essentials and access services tailored to their needs,” he said.
Lee said enforcement against businesses suspected of operating illegally could be complicated by ownership arrangements.
“Some businesses are registered under Malaysians, often the foreign operators’ spouses, making it harder to establish who is actually running the premises,” he said.
In recent months, the Immigration Department and local authorities have stepped up inspections of such businesses.
On Oct 2, the Seberang Perai City Council (MBSP) conducted checks on businesses involving foreign operators here to ensure compliance with existing laws and regulations.
The operation covered Jalan Stesen, Jalan Danby, Jalan Datuk Ooh Chooi Cheng and Kampung Aston with 12 premises inspected.
The checks resulted in 16 compounds being issued, three notices to cease operations and five premises being ordered to close.
MBSP mayor Datuk Baderul Amin Abdul Hamid said council officers had also found Malaysians, including the spouses or proxies of foreign operators, manning shop counters during inspections.
He said more premises had been closed this year amid stepped-up enforcement, adding that the council would continue monitoring businesses and act against those breaching licence conditions.
As of October, inspections of 263 premises had resulted in 148 being ordered to cease business and 255 compounds issued for various offences.
Last year, the council inspected 446 premises, ordering 67 to cease operations and issuing 657 compounds.
A check by The Star found nearly all shops, believed to be operated by foreigners, closed.
On Penang island, Penang Island City Council mayor Datuk A. Rajendran said 101 premises had faced enforcement action as of October following a series of operations under Ops Tegas.
The premises included sundry shops, eateries, barbershops and outlets selling freshly slaughtered chickens.
