Nation

Local traders cry foul over 'unfair' competition

KUALA LUMPUR: Entrepreneurs in the small- and medium-scale industries are crying foul over the increasing trend of foreign workers taking over their livelihood.

Their biggest grouse is that these foreigners are running similar businesses illicitly and are not bound by regulations.

They also claimed that these illicit traders freely employed foreign workers, many believed to be illegals or were abusing their work permits.

Exasperated, these businessmen told the New Straits Times that locals who leased their businesses or premises to foreigners who offered them high returns were also to blame.

Checks in the Klang Valley showed a number of areas that have been monopolised by foreigners, who sell just about everything: essential goods to fresh food and mobile prepaid cards. They also offer massage and hair-cut services.

Many have divided their shop lots into sections for different businesses and offered certain sections for rent to other foreigners.

Entrepreneurs are urging the government to reconsider the 2016 freeze on the intake of foreign workers.

Kuala Lumpur Hair Salon Cooperative Bhd chairman A.K. Selvan said he lost more than RM150,000 in two years.

“When we close down, these foreigners fill the gap immediately. I have been charging my customers RM10 (for a hair cut) for the past 20 years, but these immigrants are charging RM7 to RM8.

“They can provide such prices because they don’t pay income tax or levies for foreign workers.

“They sleep on the premises and they don’t have to feed their families here. How can we compete with them?”

Selvan, who is also the former Malaysian Indian Hair Dressing Salon Owners Association president, said these foreigners were bold and had no problem flouting the law.

“I was offered RM1,500 a month by a Bangladeshi in exchange for my barber shop.

“He told me that he had people to help him run the shop. I was so angry that I chased him out. Unfortunately, some locals fall for easy money.

“Some of these foreigners are also abusing their work permits. They came as workers in the plantation or construction sectors, but they ended up in the service industry,” said Selvan, who inherited the business from his father.

KL Hawkers and Bumiputera Petty Traders Association president Datuk Seri Rosli Sulaiman said the government should go after foreigners who operated businesses illegally.

“We have laws on foreigners doing businesses here, but what is happening is that even illegal immigrants are running businesses at the expense of locals.”

He said among areas packed with such illicit businesses were Selayang, Jalan Silang, Petaling Street and Pasar Pudu.

Malaysian Muslim Wholesalers and Retailers Association president Amanullah Maideen said the authorities should step up enforcement to hold those who brought in the foreigners accountable.

“How can immigrants with plantation permits set up businesses in Petaling Street and Selayang market? They should work only in sectors stipulated by the permits.

“In other countries, employers must monitor their foreign workers or they will not be able to renew their employees’ permits.”

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