(Sept 23): Kuala Lumpur City Hall is cracking down on unlicensed businesses in the city after a survey found that at least 18,000 were operating without valid licences.

City Hall socio-economic development executive director Datuk Normah Malik said the survey was conducted by Oracle Synergy Sdn Bhd.

“There is a total of 88,000 businesses from the initial survey in the 11 constituencies in Kuala Lumpur, and there are still 18,000 that don’t have licences,” she said adding that some had been operating without valid licences for 10 years.

Normah said the unlicensed businesses could face a severe penalty.

“These businesses can be fined up to RM2,000, jailed for one year or both. Once the compound is issued, if they still do not comply, they will be fined RM200 each day until they get a licence.

"It is also within our capacity to continue issuing compounds to an unlicensed business every day that they are operating without a licence and that will be RM2,000 for each compound. For businesses under the entertainment category, its RM50,000 and RM100,000 for hotels,” she said.

Normah said that it was essential for businesses to be licensed to allow City Hall to properly regulate them.

In an operation carried out today, City Hall inspected 14 premises in Lake Fields Business Centre, Sungai Besi, and took down illegal buntings, advertisements and illegal metal barriers on walkways.

It also seized computers and accessories from an unlicensed cybercafe.

City Hall Licensing and Petty Trader Management Department director Ibrahim Yusoff said the procedure to apply for a licence was simple.

“For those without licences, we will provide them with a conditional licence that is valid for six months. They will need to abide by all the conditions within the six months or action will be taken,” he said.

Ibrahim said in order to be eligible for the conditional licence, business owners needed to provide their identification card, a completed application form from City Hall, photographs of both the internal and external condition of the business premises, and a photograph of the business’s signboard.

“If they have all this, we will give them a conditional licence. They can then run their business but they will need to fulfil the other requirements within six months,” he said.

The conditions that have to be met include obtaining planning approval, building plan approval, compliance with the safety aspects as outlined by the Fire and Rescue Services Department and others.

Normah said that City Hall had previously conducted various initiatives around the city to enable businesses to easily apply for licences.

“We have informed them on the days that we will be going to their area, so that they can just apply for the licences there and then, like a one-stop centre. If they have all the required documents, the licence will be issued immediately, if not, they will know exactly what they need from us, and they can follow up at City Hall,” she said adding that officers from other agencies would also be present to assist.

This initiative was first conducted by City Hall in Kepong in March and in Titiwangsa, Wangsa Maju and Bukit Bintang in June.

“We were aiming for about 1,900 owners of premises that had no licences to show up, but only around 800 came. Then in the other areas, we were looking at about 5,700, but only 750 came,” Normah said.

The next initiative by City Hall would be carried out from September 29 to October 1 in Seputeh, Bandar Tun Razak and Cheras, which it is targeted at 7,300 unlicensed premises. – The Malaysian Insider