18-07-2025
- Business
- Free Malaysia Today
Traders fined at Penang fair for not being local residents
Screenshots from a now-deleted video showing Seberang Perai City Council enforcement officers issuing compound notices to traders at the fair in Bukit Mertajam.
GEORGE TOWN : Local government enforcement officers have drawn flak after a video showing them fining stallholders at a trade fair in Bukit Mertajam went viral.
In a now-deleted TikTok video shared by the Seberang Perai City Council (MBSP), enforcement officers were seen issuing compound notices to traders selling sarees and other Indian-themed goods.
The officers were also heard describing the event, held earlier this month, as illegal.
The traders at the concourse of the supermarket were told that they were in violation of two rules: they were not Penang residents, and they were selling 'Indian-themed items' outside the allowed period.
'I have an SSM licence, and I am a Malaysian, and you're saying I can't do business?' one shocked trader was heard asking, referring to the Companies Commission of Malaysia.
The video then showed the MBSP officers speaking to the Kuala Lumpur-based event organiser, who appeared equally confused.
The officers explained that under a state policy, only Penang residents could sell 'Indian-related' items and hold fairs.
Non-Penangites could only trade their wares from April 1 to June 30, or during the 30 days before Deepavali.
'All Malaysians are welcome to trade their wares from April to June. No problem,' one officer was heard saying.
The organiser refused to comment fearing repercussions.
The fair was held from July 9 to 13 and deemed a 'big success', with a South Indian soap star gracing its opening. Such Indian-related fairs are common across the peninsula, where cheap wares and textiles are sold at prices lower than brick and mortar stores.
Former MBSP councillor P David Marshel asked if such a policy was legal, saying it may go against Article 8 of the Federal Constitution, which guarantees equal treatment for all citizens.
He urged the Penang government to clarify whether the policy had been formally approved, and to cancel the compound notices issued.
Batu Uban assemblyman A Kumaresan said such a policy may risk creating a perception that Penang is not open to fair business practices.
'Restricting events to certain months may not be the best way forward. This could dampen growth and limit healthy competition between local and outside traders,' he said in a statement.
He said while the rule may have been aimed at protecting local businesses from unfair competition, a more equitable solution would be to manage, not block, participation.
'I urge the state to review this policy and seek a more balanced, fair and business-friendly approach that benefits all,' he said.
FMT has contacted MBSP and state executive councillor for local government H'ng Mooi Lye for comment.
