The Penang government has established specific guidelines to ensure 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 stated that this measure is aimed at protecting the interests of local traders. The policy, which was introduced five years ago, followed numerous complaints from local Indian business owners and the Penang Indian Chamber of Commerce and Industry (PICCI), who voiced concerns about foreign traders, including those from abroad, undercutting prices.
Chow explained, “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.” He further stated, “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.”
Chow made these remarks during a press conference on the Penang 2030 short video series at Komtar, in response to a newspaper report concerning the Seberang Perai City Council (MBSP) issuing summonses to traders at an Indian community business carnival in Bukit Mertajam. A video depicting the enforcement action has gone viral on social media.
He clarified that foreign traders are still allowed to conduct business or organise carnivals outside of the Deepavali peak season. Chow acknowledged there have been instances where attempts were made to circumvent the policy by applying for permits in the names of local individuals, while the actual operations were managed 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.
Chow also confirmed that the policy exclusively targets traders organising carnivals and sales associated with Indian community celebrations. “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.
In a separate statement, the MBSP clarified that it does not prohibit or restrict the organisation of sales carnivals in conjunction with cultural festivals, including those celebrated by the Indian community in Seberang Perai. However, the council emphasised that there are specific guidelines to regulate the participation of organisers and traders from outside Penang, especially during certain peak periods of the year.
The MBSP stated that the guidelines are designed to protect the livelihoods and interests of local traders, following persistent concerns about increasing competition from foreign traders. “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.
The council outlined a policy under which traders and organisers from outside Penang are only allowed to conduct business or organise events within the state between 1 April and 30 June each year. According to MBSP, the policy is not racially discriminatory nor intended to suppress any particular community, but rather is a proactive measure to protect the welfare of local traders, especially small-scale entrepreneurs within Penang’s Indian community, to ensure they remain competitive in the current economic landscape.
