Foreign-run businesses hiring locals to stay under the radar

New Straits Times

28-05-2025

KUALA LUMPUR: Businesses run by foreigners who are misusing their work permits are now employing locals to avoid detection by the authorities.
These businesses, in Kuala Lumpur and Petaling Jaya, also view employing locals as a means of attracting more customers.
One foreign business owner, who wished to be known only as Shah, said he operates various enterprises, including a computer and accessories shop, a restaurant, and a hotel.
Shah said that he employs both locals and foreigners to manage the day-to-day operations of his businesses.
"Yes, I do misuse my permit, but I'm just trying to earn an honest living," Shah told Harian Metro.
"I don't steal, and many of my employees are Malaysians," said the man, who is in his 40s.
He added that all businesses are run in partnership with local associates to help facilitate business dealings.
"I came to Malaysia in 2007 on a work permit. I was selling laptops at a mall in Kuala Lumpur.
"After a few years, a local friend and I opened a small kiosk in Petaling Jaya, renting it for around RM5,000 to RM6,000 a month.
"Initially, business was slow, but over time, more and more people came to buy from us, and after a few years, we opened another shop in the same area," he said.
Shah added that as his business grew, he started employing local staff as sales assistants and reduced his presence at the shop to avoid questions from the authorities during inspections.
He said he preferred employing locals because hiring foreign sales assistants is complicated and costly.
Shah admitted that he is in violation of immigration regulations but said he had no choice as he needed to support his wife and young child in his home country.
"To avoid the risk of being detained by the authorities, I only visit the shop for truly important matters. Everything else is handled by my business partners.
"I've been living here for over 15 years. Sometimes I go back to my village for a few months, then return here because it's hard to make a living back home," he said.
Another foreign businessman, who wished to be known as Raju, said he was determined to start a business here after enduring exploitation by his former employer, who frequently deducted his wages.
"I was working as a sales assistant, with a basic salary of RM900, plus commissions, but every month the boss would cut my pay and come up with all sorts of excuses. Even when we made good sales, our salaries were docked.
"After three years, I couldn't take it anymore. I ran away and worked at various places to save up money and opened a small computer shop," he said.
With the help of a local acquaintance, Raju managed to rent a small shop.
Raju also employs four locals to run the shop.
Raju said he constantly fears being caught by the authorities but would rather be arrested than continue being treated like "trash" by his former employer.
"I just want to help my family by earning money here, even if sometimes I get harassed by the police or immigration officers. I don't want to go back to my village.
"Life is even harder there, no jobs, no money. How can we survive? It's better to struggle here in Malaysia, at least we can still work and earn something," he said.