Crack down on ‘Ali Baba’ practices, not just raid business premises

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The takeover of local businesses by foreign nationals is an issue that cannot be taken lightly, as it not only violates licensing conditions but also undermines local traders' opportunities to earn a legitimate living. - File photo

‘Ali Baba’ practice occurs when local licence holders rent out their licences or premises to foreign nationals to operate businesses without authorisation.

THE takeover of local businesses by foreign nationals is an issue that cannot be taken lightly, as it not only violates licensing conditions but also undermines local traders' opportunities to earn a legitimate living.

The cancellation of 28,401 business licences over three years through integrated operations by the Ministry of Housing and Local Government (KPKT) highlights the seriousness of the issue and the need for continuous enforcement.

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A total of 10,248 integrated operations were carried out during the period, resulting in 100,366 enforcement actions nationwide.

Beyond these figures, the ‘Ali Baba’ practice, which allows foreign nationals to operate businesses using licences or premises owned by Malaysians, also warrants serious attention as it creates opportunities for the misuse of licences.

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The ‘Ali Baba’ practice occurs when local licence holders rent out their licences or premises to foreign nationals to operate businesses without authorisation.

This practice must not be allowed to continue, as it not only violates licensing conditions but also creates opportunities for illegal businesses to remain operational.

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Licence holders who collude in such arrangements must face stern action, including licence cancellations in accordance with established regulations.

The practice must also not be addressed selectively, which could lead some parties to believe they can escape punishment.

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Continuous monitoring, information sharing between agencies and follow-up action against premises that have previously been penalised must be prioritised.

Cooperation between KPKT, the Immigration Department of Malaysia, the Royal Malaysia Police and the Ministry of Domestic Trade and Cost of Living must be strengthened.

Protecting the interests of local traders requires concrete action, not merely statements and statistics.

The ‘Ali Baba’ practice and the rental of licences to facilitate the operation of illegal businesses must be eradicated at their roots.