Johor Steps Up Enforcement, Foreign-Run Business Compounds Surge To RM180,000

ISKANDAR PUTERI, Nov 19 (Bernama) -- Enforcement actions against foreign-run businesses operating without licences across Johor’s 16 local authorities (PBTs) recorded a significant increase this year, with the value of compounds rising sharply, from RM30,000 in 2024 to RM180,000 in 2025.

State Housing and Local Government Committee chairman Datuk Mohd Jafni Md Shukor said from December 2024 to October 2025, a total of 158 offence notices, 304 compounds and 552 seizures were recorded, in addition to the temporary closure of premises to prevent repeat offences.

“This enforcement performance shows that efforts to curb unlicensed foreign business activities will be carried out more firmly, aggressively and comprehensively throughout 2025,” he said, at the Johor state assembly sitting in Kota Iskandar, today.

He said this in his reply to an oral question from Tan Eng Meng (BN-Pekan Nanas), regarding actions taken and those underway against business premises owned or operated by foreigners without legal permission.

Mohd Jafni said that enforcement measures include licence inspections, raids, seizure of goods, licence cancellations, closure of premises and licence confiscations, depending on the level, risk and type of legal violation.

He said inspections found that most of the premises were owned by locals, but that their management had been handed over to foreigners, particularly in the retail, convenience store and car wash sectors.

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“Firm action has been taken to curb such licence abuse. Pasir Gudang City Council (MBPG), for example, has introduced stricter policies, including a ban on hiring foreign workers in the retail sector, and not approving licences for applicants who employ foreigners without valid documents,” he said.

Mohd Jafni said other local authorities, including the Iskandar Puteri City Council (MBIP), Muar Municipal Council (MPM), Batu Pahat Municipal Council (MPBP) and Tangkak District Council (MDT), have also taken comprehensive action through issuing compounds, conducting seizures, carrying out large-scale integrated operations, closing premises and revoking licences, to ensure that business ownership and operations comply with regulations.

He said this consistent and firm enforcement approach is carried out in accordance with the Licensing By-Laws, Local Government Act (Act 171) and immigration regulations, supported by scheduled monitoring and notifications to premises owners to prevent illegal licence transfers or misuse of premises by foreigners.

-- BERNAMA