50% local ownership policy for foreign traders: City Hall

KUALA LUMPUR: To curb foreigners from dominating businesses in the capital, Kuala Lumpur City Hall (DBKL) will introduce a 50% local ownership policy to be adhered to by every foreign trader who wishes to continue doing business here.

DBKL’s Licensing and Hawkers Development Department director Datuk Ibrahim Yusoff said the policy requires at least 50% ownership by a local to allow a foreigner to operate a business in the capital, effective next year.

He said the new requirement also covered employees, where business owners must hire at least 50% locals in their worforce.

“A one-month enforcement notice dated Nov 1 has been distributed to business premises around Kuala Lumpur.

“If they fail to meet the set requirements, DBKL has the right to withdraw their business licence,” Ibrahim said.

He was speaking to reporters when asked to comment on the issue of foreign traders in Kuala Lumpur during the tabling of the DBKL Budget 2017 by Kuala Lumpur Mayor Datuk Seri Mhd Amin Nordin Abd Aziz here yesterday.

Ibrahim said he hoped the strict conditions would curb the influx of foreign traders as well as “Ali Baba” licences.

He said DBKL would also freeze issuing of licences to foreign traders in several locations.

Among the areas affected by the freeze are Jalan Silang, Bukit Bintang and Pusat Bandar Utara.

Monitoring would also be carried out to curb foreign traders without licences operating around Kuala Lumpur.

Earlier, Mhd Amin had announced a RM2.871 billion budget for DBKL to provide municipal services and governance to about 1.76 million city dwellers in 2017. – Bernama