By Usha Muthusamy
GEORGE TOWN, 22 July 2025: Penang is upholding its long-standing policy to prioritize local Indian traders at festive fairs, particularly during the crucial Deepavali season. This measure, in place for over five years, aims to safeguard the livelihoods of Penang-based entrepreneurs.
Chief Minister Chow Kon Yeow clarified that permits for Indian trade fairs, festivals, or carnivals during peak periods are exclusively granted to traders within the state. This is vital as Deepavali sales are critical for local traders to cover year-round operational costs like rent, taxes, and salaries. “Traders from outside Penang will not be given permits… as this would negatively impact the local Indian traders,” Chow stated.
The Malaysian Indian Chamber of Commerce and Industry (MICCI) Penang branch has strongly backed the policy. Its president, Datuk S. Parthiban, highlighted the necessity of the regulation to protect local traders who heavily rely on such festive events for annual sustenance. He commended the Penang government for a “structured, fair approach that balances the need to preserve market viability for Penang-based traders.”
The policy recently gained renewed attention following enforcement action and summonses issued by the Seberang Perai City Council (MBSP) at an Indian trade fair in Bukit Mertajam, an incident that went viral. MBSP clarified that it does not ban cultural trade fairs but enforces specific guidelines to manage participation, particularly from external organizers and traders.
Under existing rules, traders and organizers from outside Penang are permitted to conduct business or organize events in the state only between April 1 and June 30 each year. Both the Chief Minister and MBSP emphasized that this policy is not racially discriminatory. Instead, it serves as a proactive measure to ensure local traders, especially small-scale entrepreneurs within the Indian community, remain competitive amidst a challenging economic climate. The policy’s implementation was driven by complaints from local business groups regarding external vendors dominating and offering cheaper products during key festive periods.
