Selangor authorities is trying to license on-line companies within the state, with pointers set to be launched inside the first half of subsequent yr.
Selangor native authorities, public transportation and new village growth committee chairman Ng Sze Han mentioned the transfer was mandatory to control the rising variety of on-line companies in addition to to supply some type of certification by the authorities for such enterprises.
“House-based on-line companies are rising, notably in the course of the Covid-19 pandemic and it’s a pattern we can’t cease, ” he mentioned.
“We wish to encourage and legalise on-line companies for a number of causes.
“There’s a want for correct regulation to keep away from issues inside the group, similar to disturbing neighbours, inflicting site visitors nuisance and producing extreme waste.
“Some present on-line companies want an area council’s licence or comparable documentation for his or her enlargement, export plans or different causes, however there isn’t a present course of that permits them to try this.”
To use for an internet licence, Ng mentioned candidates would first must register their enterprise with the Corporations Fee of Malaysia (SSM) and apply for a planning order with the native council for short-term conversion of their property.
“It is going to be a easy course of to use for a short lived conversion to alter from a residential to semi-commercial property, ” he mentioned.
“That is mandatory as beneath the City and Nation Planning Act 1976 (Act 172), a property can’t deviate from the unique function it was constructed for.”
Ng mentioned the rule of thumb would possible cowl companies that use web sites, social media and messaging apps to conduct their transactions and day-to-day affairs.
“We’re permitting a most of 25% of a residential property for use for a home-based on-line enterprise, which incorporates workspace and storage, ” he mentioned, including that operators who wanted a much bigger space ought to have a look at renting an workplace area.
“The rule of thumb will cowl most forms of home-based on-line companies, similar to meals (freshly cooked and frozen), baked items and kuih, cosmetics, clothes, arts and craft, writing, design, structure and consultancy.
“It can additionally apply to large-scale or business entities that use the web platform for his or her companies.”
Ng mentioned to this point, SSM had 41,148 entities registered as on-line companies.
Petaling Jaya Metropolis Council (MBPJ) is taking the lead in drawing up the rule of thumb, which is the primary of its variety in Malaysia.
“We’re nonetheless within the midst of fine-tuning sure particulars, similar to the precise utility course of and whether or not to implement it concurrently throughout your entire state or to start out with the town councils first, then municipal and district councils, ” mentioned Ng.
“The price construction for on-line enterprise licences can be being mentioned, as the present charges for merchants differ between metropolis and district councils.”
He mentioned the primary draft of the rule of thumb was offered in October throughout a gathering attended by himself and heads of native councils in Selangor.
The ultimate model should be offered and authorised on the state exco assembly, earlier than its focused implementation inside the first half of subsequent yr.
The licence utility, price assortment and monitoring measures might be dealt with by the native councils the place the web companies are primarily based in. For instance, a enterprise registered in Kota Damansara would fall beneath MBPJ.
“This transfer is just not meant to penalise on-line companies. We wish to legalise and regulate them, so we’d like the information and measures to try this, ” mentioned Ng.
He assured that the registration course of could be made as simple and easy as attainable to encourage all entrepreneurs to register their on-line companies.
House-based entrepreneurs who spoke to StarMetro had been typically towards the licensing transfer, citing it as a further and pointless burden throughout an already troublesome financial state of affairs.
“Whereas I perceive why there could also be a necessity for this, I really feel it’s a knee-jerk response to a couple dangerous enterprise house owners who trigger issues within the neighbourhood. And for this, the vast majority of home-based small companies must pay the worth, ” mentioned Dana Chia*.
“For some companies, this may be the one technique of help and finance after being affected by the Covid-19 pandemic.
“Having to undergo the trouble of making use of for a licence and different paperwork might be an excessive amount of hassle and should even take away what little revenue we get, ” mentioned the Petaling Jaya resident who began promoting muffins and cookies about six months in the past.
Chia, who bakes as a passion and receives orders on a seasonal foundation, questioned why the “25% of a residential area for use for an internet enterprise” ought to apply to her and whether or not she ought to convert her home right into a semi-commercial property.
“Who and the way will they provide you with pointers for buying a licence? Do the authorities really perceive the huge spectrum of on-line enterprise within the first place?” requested Chia, who will get her orders by social media and word-of-mouth suggestions.
“Some F&B companies may be extra problematic as they could generate plenty of meals waste or trigger congestion when prospects or supply guys decide up their meals.
“However what if it’s a know-how enterprise or somebody promoting do-it-yourself jewelry or craft? The place do these fall beneath? You can not have a blanket rule for all.
“The procedures and paperwork required are sometimes mired in unnecessary paperwork, slightly than to assist construction or regulate on-line companies.”
Chia felt that the proposal appeared as one other method for the federal government to make cash from people who find themselves already struggling throughout laborious occasions when as an alternative they need to be making an attempt to assist entrepreneurs and native SMEs get again on their ft and assist the economic system.
“I disagree with the licensing proposal as my enterprise is just not an enormous one which brings in massive income, ” mentioned Eida Iskandar*, who feels she is just not capable of fulfil the necessities wanted to use for the licence.
“The appliance course of additionally appears sophisticated and impractical, since we should go to 2 completely different authorities companies to register our enterprise and apply for a licence.”
The 52-year-old has been promoting frozen meals similar to curry puff and kuih from her home in Kajang for the previous three years, with Fb and WhatsApp being her chosen platforms.
“Mine is a seasonal enterprise, so I don’t have a hard and fast every day or month-to-month revenue, ” mentioned Eida.
“I’m already paying about RM200 monthly for my Web invoice. I’ll not have a lot left if I additionally must pay the licence and registration charges for a enterprise that I’m solely doing part-time to help my household.”
As an alternative of constructing it tougher for folks to earn an revenue in the course of the Covid-19 pandemic, she mentioned the federal government ought to have a look at different methods to help people who find themselves turning to on-line companies after dropping their jobs or want extra funds to complement their household revenue.
“The federal government ought to assist us entrepreneurs enhance gross sales or enhance our companies by offering coaching and different initiatives, as an alternative of burdening us with extra charges and laws, ” mentioned Eida.
Anele Mei Yun* felt that extra analysis and feasibility research ought to be finished earlier than the proposal was carried out.
“The federal government’s transfer to supply a protected platform for small on-line companies is an effective one, ” mentioned the 30-year-old who has been promoting Nyonya kuih for over a yr.
“However on the similar time, we don’t need an excessive amount of problem for functions, guidelines and charges. The foundations shouldn’t be inflexible; it ought to be understood by folks from all walks of life.”
Along with taking orders by way of Fb and WhatsApp, Yun typically bundles her vibrant kuih and different baked goodies onto a trusty bicycle to promote round Ampang.
As a home-based baker who lives in a strata property, Yun mentioned she didn’t have a lot capital to scale up her enterprise and would discover it troublesome to satisfy the rule of thumb’s necessities.
“If this transfer had been to be made obligatory, I hope the federal government won’t make the method too troublesome and expensive, ” she mentioned, including that she wouldn’t pay greater than the RM60 for the licensing price.
“In my expertise, paperwork in coping with authorities companies typically impedes enterprise creativity and makes it troublesome for start-ups.”
Yun prompt that the federal government present digital coaching to petty merchants to spice up their gross sales and supply schemes.
(* denotes pseudonym)