THE Federal Territories Ministry has revoked 40 business licences where their holders had rented or sublet their premises to foreigners.

Deputy Minister Datuk M. Saravanan said all their goods were also confiscated.

He said on May 22, City Hall enforcement officers confiscated the goods put on sale by two foreigners -- one each in Jalan Raja Bot and Jalan Raja Hussein.

"Kuala Lumpur City Hall had never issued business licences to foreigners.

"However, there are instances where the foreigners are hired by the traders," he said in reply to a question by Datuk Wira Syed Ali Syed Abbas Alhabshee in the Dewan Negara yesterday.

Syed Ali wanted to know how foreigners such as Bangladeshis, Pakistanis and Indonesians were able to obtain business licences and owned shoplots allowing them to monopolise the textile business in the city centre, including Jalan Tunku Abdul Rahman.

Saravanan said most traders were having difficulties in getting citizens willing to work for minimum wages.

"So, they have no choice but to hire foreigners.

"However, the ministry and City Hall will take action against any party that rents their licences to foreigners."

City Hall has issued 4,875 notices against traders who broke the law from January to May this year.