Kuala Lumpur City Hall (DBKL) this month issued a directive to business owners that a local must hold at least 50% equity in the business.

DBKL has also made it compulsory that at least 50% of the workers who are hired are locals.

DBKL licensing and petty traders management director Ibrahim Yusof said this was to break the monopoly that foreigners currently held in parts of the city.

“Jalan Silang and Jalan Tun Tan Cheng Lok are being monopolised by foreign traders.

“The business owners are here legally and they have their permits and visas, but because of the influx of foreigners we do not see any locals involved,” he told reporters after attending a dialogue session with traders and the Immigration Department today.

Ibrahim said if any current business had a local shareholder with only a 20% equity, then that equity must be increased to 50%.

“The Companies Commission of Malaysia will allow you to become a shareholder even if you own 1%.

“Sometimes, this 1% shareholder is a sleeping partner. They (the foreigners) marry a local and give their spouse 1% and they take 99%. Then they send all the money overseas.”

Ibrahim said notices had already been sent to business owners and the authorities would begin taking stern action next year.

“We will take action against them by cancelling the licences for the premises such as restaurants, boutiques and grocery shops.

“We don’t want this trend (of a foreign monopoly) to spread all over the city. Locals can carry out all these businesses.”