‘Deputy minister highlights foreigners’ tactic of marrying locals to run businesses’

KUALA LUMPUR, Sept 3 — Foreigners marrying locals has emerged as a key tactic to legally operate businesses in Malaysia, the Dewan Negara was told today.

Deputy Domestic Trade and Cost of Living (KPDN) Minister Datuk Dr Fuziah Salleh said this was because the Registration of Businesses Act 1956 (Act 197) only allows Malaysian citizens and permanent residents to register sole proprietorships or partnerships.

“Some foreigners exploit this loophole by registering businesses under the names of their local spouses. Perhaps we should discuss how this affects and threatens local traders,” she said while winding up the debate on the 13th Malaysia Plan motion for her ministry.

Fuziah explained that although many complaints had been lodged by local traders, such registrations remain legal since they are done under the Malaysian spouses’ names.

She stressed that business registration under Act 197 is restricted to citizens and permanent residents as a safeguard to protect local SMEs from foreign competition.

“At present, the Companies Commission of Malaysia (SSM) has no rule preventing Malaysians married to foreigners from registering a business,” she said.

Fuziah noted that suggestions from the public include limiting business registration by foreign spouses to only after a certain period of marriage, such as five years.

She added that enforcement against foreign traders is carried out jointly with the Immigration Department (JIM) and local authorities, since KPDN itself lacks arrest powers.

“They may hire foreign workers, but during raids, we sometimes find these workers stationed at the front counter. That is not allowed. Because KPDN has no authority to act, we have to call in JIM,” she explained. — Bernama