LOCAL hawkers and traders are risking their business licence by renting them out, said traders’ groups.

The Kuala Lumpur Hawkers and Petty Traders’ Association said it would not be able to assist any of its members caught breaking the law.

Chairman Ang Say Tee said the association had repeatedly advised members against renting their licence.

Prime Minister Anwar Ibrahim, in a recent visit to the Jalan Tuanku Abdul Rahman hawker centre, warned the Kuala Lumpur City Hall (DBKL) would revoke the licences of traders who lease them out to third parties like foreigners.

“It’s a condition stated on the licence. However, there are the few recalcitrant ones who just refuse to abide by the law,” Ang told The Malaysian Insight.

He said the prospect of making easy money is just too tempting for them, and that errant traders are usually those too old or lack the knack for business.

Ang said a licence holder can make a 100% profit by renting out a RM200 licence for RM400 a month.

“He’s making RM200 a month from that RM200 licence. That’s easy money.”

Similarly, a business unit rented for RM1,000 a month can be sublet for RM3,000 a month plus the business licence.

Ang said licence rental was once a long-standing problem at the Petaling Street market, but the illicit activity there has died down.

“There is no way this association can plead on (errant traders’) behalfs if their licences are revoked,” Ang said.

“We received many requests for help from members who were caught renting out their licences.

“All we can do is to remind them they must abide by the law and not be greedy for small gains.”

Federation of Selangor and Kuala Lumpur Hawkers’ Associations complaints unit head, Boon Kok Choon, said renting out licences to foreigners courts serious health risks.

He said it is mandatory for licence holders to get vaccinated every three years to renew their licences.

But when they rent out their licences, unvaccinated third-party hawkers put customers at risk as they could be carrying infectious diseases.

“This problem of licence rental has been going on for the last 10 or 20 years and there is no definitive solution to it,” said Boon.

A Klang restaurant owner, Poon Kok Choon, said the situation has improved in recent years as the Klang Municipal Council has been actively fighting the problem.

Local Government Development Minister Nga Kor Ming lent support to the prime minister’s move by urging state governments to revoke all rented licences.

He said traders should not abuse their business licences. – July 3, 2023.