DBKL shuts down 597 business premises run by foreigners

Kuala Lumpur City Hall (DBKL) has ordered the closure of 597 foreign-owned businesses under Section 101 (1) (v) of the Local Government Act 1976. The order, which took effect on July 20, 2020, forbids foreign nationals from seeking licenses for up to twenty different types of businesses. Hypermarket, supermarket, mini mart, sundry shop, 24-hour convenience store and other types of businesses (refer the full list below). 

Twenty types of businesses have been signed out

1. Hypermarket/supermarket/mini mart 

2. Sundry shop 

3. 24-hour convenience store 

4. Petrol station 

5. Wet market 

6. Cybercafe 

7. Bag shop 

8. Spa 

9. Jewlery shop 

10. Car workshop 

11. Computer and accessories shop 

12. Laundry service 

13. Hair salon and barber shop 

14. Five-foot-way kiosk 

15. Food and drinks kiosk 

16. Restaurant/bistro/café 

17. Teak wood furniture shop 

18. Retail shop (clothing and shoes) 

19. Mobile phone and prepaid phone card shop 

20. Herbal and Chinese medicine shop (KKM approved) 

There are two types of licenses, a premises license and a business license, which are governed by the Licensing of Trades, Businesses and Industries (Federal Territory of Kuala Lumpur) By-laws 2016 (UUK20) and Licensing of Hawkers and Food Placement (Federal Territory of Kuala Lumpur) By-laws 2016 (UUK22). 

a. UUK22 – the business license category

• Local traders, even husband-and-wife partnerships with one spouse who is a foreigner, are not permitted to engage a foreign worker to run or manage their business 

b. UUK20 – the premises license category

• Foreigners are allowed to do business and recruit foreign workers as long as the worker has a valid immigration permit and the company is registered with Companies Commission of Malaysia (SSM) 
• However, the law still applies to the 20 types of businesses that DBKL has forbidden any form of foreign participation 
• It is prohibited to sublet, rent, or sell a license to a foreigner in any circumstances 

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