Malaysian Scrap Metal Dealers Cry Foul

About 250 Malaysian scrap metal dealers who have yards in Selangor and Kuala Lumpur are unhappy over a recent directive ordering them to either relocate to industrial zones or wind up their businesses. 

The Malaysian Indian Metal and Old Goods Traders Association called for an emergency meeting where they sought the assistance of Federal Territory MIC chief Datuk V.K.K. Teagarajan to look into their plight.

In Klang, about 150 scrap metal dealers sought an urgent meeting with Education Ministry parliamentary secretary and Kapar MP Komala Krishnamoorthy to find a solution.

D. Gurusamy, 52, who has been running a scrap yard in Puchong for the past 20 years, said the new ruling of limiting only 30 scrap iron dealership license for every local authority would mean that the richer and bigger scrap metal dealers would monopolize the situation.

“Instead of limiting the number of licenses issued to 30, the government should issue 1,000 scrap metal licenses in each local government so that all scrap metal shops are legalized.

“Most of the stolen copper wires from power stations, water meters, manhole covers, telephone cables and railings are found at these illegal yards. These illegal dealers have better ways of disposing of the stolen goods.

Gurusamy added all legal scrap metal dealers had a record book monitored by the police and signed by the officer in charge at least once a week.

He added that instead of penalizing scrap metal dealers, the government should make sure that public utility companies such as Tenaga Nasional took proper anti-theft measures.

“TNB sub-stations cost millions of ringgit each to built, but there’s no full-time security guard or alarm system at the sub-stations to deter thieves. This is ridiculous,” he added.

The increase in the incidence of metal thefts prompted the authorities to closely regulate the lucrative scrap metal business in the Klang Valley.

The situation is so serious that the Selangor state government and Kuala Lumpur City Hall have directed that the number of licensed scrap yard operators be reduced to below 30 per local council. 

According to the Malaysian Star, the Cabinet ordered a clampdown on illegal metal scrap operators following complaints of rampant stealing of metal bars and objects in the major towns and cities. 

Selangor Mentri Besar Datuk Seri Dr Mohd. Khir Toyo, who met the Klang and Shah Alam Scrap Metal Dealers ad-hoc committee said that there was a serious need to regulate the scrap metal business as it had been linked to metal theft.

“The government, business organizations and public have been incurring losses in millions of ringgit due to thefts of metal gratings, sign boards, metal poles, house gates, window frames and even water meters,” said Khir, who added that it would be a major problem for him to administer Selangor if the matter was left unchecked.

“We are going to vet all scrap metal dealers and only allow those who are genuine to operate.”

Under a new ruling, each local government authority could only give out a specified number of licenses to scrap metal dealers.

Klang district could only have 34 ’legitimate’ companies dealing with scrap metal business. However, there are 122 scrap metal companies operating in Klang.

DBKL's deputy director-general Mohd Amin Nordin Abdul Aziz said there would be no reprieve for illegal metal scrap operators and most of them had already been issued notice to close their yards. 

“Those without the license to operate a scrap yard will face stern action if they ignore our notice to cease operations, while others have been ordered to relocate to industrial areas,” Mohd Amin told several scrap yard operators during a meeting at DBKL. 

Mohd Amin agreed to an appeal from the operators to relocate within a month instead of the earlier order directing them to move within a week.

“Those without license should close shop or look for an industrial lot before applying for a license. 

“More importantly, they should cooperate with us to nab those involved in metal theft. They should refrain from buying stolen goods and should tip off the police immediately if they come across such people,” said Amin.

He said DBKL would meet the Malaysian Indian Metal Traders Association next month to devise a comprehensive solution to resolve the problem of metal theft in the city. 

Mimta assistant secretary R. Paramasivam expressed concern over the latest move by the authorities as it would the livelihood of those in the metal scrap Industry. 

He said that the scrap metal business was a big industry and contributed to the nation’s economy.

“Our dealers salvage old metal and it is recycled. Our hands are soiled through this but it helps the construction and automotive industries. It is easy to come up with decisions to close businesses without thinking about the serious implications it can create,” he added.

Paramasivam said the scrap metal trade had helped many Indians who would have been living in poverty if they had not ventured into the business.

“If these businesses are closed, many of the traders will lose their means of livelihood and some may even turn to crime to survive,” added Paramasivam.

He said it was grossly unfair to rob many people of their livelihood for the crime committed by a select few.