KUALA LUMPUR (Nov 3): The Federal Territories Department is studying the use of artificial intelligence (AI) technology, including facial recognition systems, to identify legitimate business licence holders and curb the misuse of business licences around the Kuala Lumpur Wholesale Market.

Deputy Minister in the Prime Minister’s Department (Federal Territories) Datuk Lo Su Rui said the initiative is among the improvement measures being considered to address the long-standing issue of foreign traders engaging in business activities in the area.

“This technology aims to help identify whether individuals operating businesses are legitimate licence holders, thereby reducing the risk of licence misuse and breaches of business regulations,” he said during the Special Chamber session in the Dewan Rakyat on Tuesday.

He was replying to a question from Datuk Seri Wee Jeck Seng (Barisan Nasional-Tanjung Piai) regarding government efforts to curb the misuse of business licences, including the involvement of unauthorised foreign traders around the Kuala Lumpur Wholesale Market.

Lo said Kuala Lumpur City Hall (DBKL) views the issue seriously, as the emergence of such traders not only affects local traders through unfair competition but also raises concerns regarding safety, urban governance and legal compliance.

He said DBKL had implemented various enforcement measures, including through the KL Strike Force, which brings together several enforcement agencies to coordinate operations in the affected areas.

He added that as of October, DBKL had conducted 11 special enforcement operations and seven integrated operations with the relevant agencies around Pusat Bandar Utara.

“During the period, a total of 403 general notices, 2,182 traffic notices, 934 seizure actions and three premises closure orders were issued against parties found to have breached licensing conditions or engaged in unauthorised business activities,” he added.

However, Lo said the issue had yet to be fully resolved due to DBKL’s limited jurisdiction, which covers only the enforcement of business and hawking activities.

He said that a significant portion of the foreign nationals involved belonged to the community of United Nations High Commissioner for Refugees (UNHCR) cardholders, and that DBKL did not have the authority to detain them.

“Such action falls under the jurisdiction of the Immigration Department and National Security Council. This limitation means that individuals who have been subjected to enforcement action may return to their business activities after the operations,” he added.

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