GEORGE TOWN, July 21 (Bernama) -- The Penang government has set specific guidelines ensuring that only Indian traders from the state are permitted to participate in sales carnivals held during the Deepavali festive season.
Chief Minister Chow Kon Yeow said the move aims to safeguard the interests of local traders.
He said the policy, introduced five years ago, followed numerous complaints from local Indian business owners and the Penang Indian Chamber of Commerce and Industry (PICCI), expressing concerns over the influx of foreign traders, including those from abroad, who offer products at cheaper prices.
"The main reason is that local traders live and operate here throughout the year. They bear ongoing costs such as rent, taxes and salaries to their employees, but the business is not always profitable every month. Many of them rely on festive seasons, like Deepavali, to earn a better income.
"So during peak seasons such as Deepavali, only local traders are allowed to apply to operate at sales carnivals, fiestas or similar events because we want to protect their interests," he said during a press conference on the Penang 2030 short video series at Komtar here today.
Chow said this in response to a newspaper report regarding the Seberang Perai City Council (MBSP) enforcement action in issuing summonses to traders at an Indian community business carnival in Bukit Mertajam, near here. A video on the incident went viral on social media.
Chow clarified, however, that foreign traders are still allowed to conduct business or organise carnivals outside the peak Deepavali festive season.
He also acknowledged that there have been attempts to bypass the policy by applying for permits under the names of local individuals, while the actual business operations are carried out by foreign traders.
“This is a common tactic—permits are applied for using the names of locals, but in reality, it’s foreigners who run the stalls and supply the goods. This practice puts undue pressure on our local traders,” he said.
According to Chow, the policy only applies to traders who organise carnivals and sales in conjunction with celebrations of the Indian community.
“So far, there have been no complaints from traders in other sectors such as durian sellers or night markets, so the policy only involves Indian traders ahead of their festive season,” he said.
The MBSP, in a separate statement, clarified that it does not prohibit or restrict the organisation of sales carnivals held in conjunction with cultural festivals, including those celebrated by the Indian community in Seberang Perai.
However, MBSP emphasised that specific guidelines are in place to regulate the participation of organisers and traders from outside Penang, particularly during certain peak periods of the year.
According to the statement, the measure is intended to safeguard the livelihoods and interests of local traders, who have raised concerns over the growing presence of foreign traders offering stiff competition.
“MBSP has received repeated complaints from local traders' associations, especially those representing the Indian community, who feel that their business opportunities are increasingly being squeezed due to the influx of outside organisers and foreign traders dominating commercial spaces during cultural and religious carnivals,” it said.
It said a policy has been implemented whereby traders and organisers from outside Penang are only permitted to conduct business or organise events in the state between April 1 and June 30 each year.
The policy is not racially discriminatory nor intended to suppress any particular community; rather, it is a proactive measure to safeguard the welfare of local traders, particularly small-scale entrepreneurs within the Indian community in Penang, ensuring they remain competitive amid today’s challenging economic landscape, it said.
-- BERNAMA
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