By Danial Dzulkifly and Dewi Abdul Rahman
SHAH ALAM, Jan 23 — The surge of home-based cafes, eateries and bakeries has transformed the local dining landscape as Malaysia gradually recovers from the economic impact of the Covid-19 pandemic.
With a growing number of residents embracing entrepreneurial ventures, ranging from artisanal coffee and trendsetting pastries to homemade goods and traditional Malaysian kuih, these businesses have given rise to a vibrant, competitive cafe-hopping scene.
While many conventional cafe owners applaud the entrepreneurial spirit and the healthy competition, they are also concerned about the disparity in regulatory compliance between home-based operators and established businesses.
Hirup Cafe director Hafiz M. Shaari said traditional cafe owners face the added complexity of due diligence on top of overhead and other operational costs, including paying Social Security Organisation contributions and ensuring their premises comply with health codes.
“The layer of due diligence and compliance that we have to meet is much stricter compared to home-based businesses,” said Hafiz, who noted that commercial establishments must also adhere to stringent health, safety, and zoning regulations.
In contrast, he felt that oversight for home-based operations is less stringent, allowing these businesses to thrive with lower operating costs and fewer bureaucratic hurdles.
Despite this, Hafiz welcomes competition, noting that his neighborhood cafe has attracted more visitors from across the Klang Valley due to the growing appeal of unique food offerings from local cafes, including the rise of home-based eateries in nearby areas.
“Every cafe offers their own unique take or specialty, so people often visit to taste each one. It may become a problem if two businesses offer the same specialty, but overall, everyone gets a piece of the pie, so to speak,” he said.
Hafiz, who operates his cafe in Section 9 here, claimed some home-based business owners have approached him for advice on managing their ventures, particularly in navigating local council regulations.
“The best advice I can give them is to do their best to follow the rules. Consider any fines from the local councils as part of the cost of doing business. There’s no need to avoid or circumvent regulations, instead deal with them appropriately.”

Price challenge
Kopimeo x Lacarne co-owner Bazlina Razmi echoed Hafiz’s sentiment of embracing competition, recognising the need for people to find viable income sources.
“Competition is good, and I support anyone who starts a business to improve their livelihoods. Everyone is entitled to earn their own livelihood,” said Bazlina, who has been operating in Section 9 here for the past decade.
However, she pointed to the growing financial pressure on traditional cafe owners, who must contend with rising operational costs, overheads, and strict compliance with licensing requirements.
Bazlina also expressed concern at how some home-based or roadside coffee vendors are charging prices similar to those of established cafes.
She cited roadside coffee stalls as an example, noting that they often sell coffee for over RM10 per cup despite significantly lower operating costs.
“My only gripe is the price point, as we can’t easily raise our prices without scrutiny from our customers. Every ringgit they spend is closely evaluated.
“For us, pricing reflects not just the cost, but also the quality and consistency we aim to deliver. We want our customers to feel they’re getting value for money and to trust us for repeat business.
“But when I look at some of these roadside coffee vendors, the price for premix coffee is often the same as what we charge for brewed coffee from espresso machines. The public needs to understand the difference in what they’re paying for and the quality of coffee they’re getting.”

Legal grey area
Local governments, including Selangor’s administration, initially adopted a lenient approach toward these home-based ventures, recognising their role in providing alternative income streams, especially during the Covid-19 pandemic.
During this period, temporary licences were issued to allow these businesses to operate legally under specific conditions. However, the state discontinued the policy in 2022, leaving the issuance of temporary licences at the discretion of individual local councils.
On January 16, state executive councillor for local government and tourism Dato’ Ng Suee Lim said the Selangor government is considering streamlining guidelines for home-operated businesses amid a surge in such enterprises.
One home-based eatery operator, Amjad Rana, has navigated these challenges with his business, Liza Briyani, in SS15, Subang Jaya, serving his signature dish he has prepared and sold out of his corner-lot home since 2017.
“Initially, I started with nasi lemak before shifting to briyani. Over the years, I’ve seen an increase in demand, but running this kind of business isn’t without its challenges.”
Amjad admitted to being fined by authorities and getting complaints from neighbours due to the lack of official licensing, but he maintained a pragmatic approach to these setbacks.
“I simply admit my fault when council officers visit, and I humbly accept the fine. These officers are just doing their job, and I’m very aware my business operates without proper licence,” he said.
Amjad also acknowledged the difficulties local councils face in regulating such businesses. He fears a surge of similar ventures could create further complications.
As a solution, he proposed the government offer a more permanent operating license for home-based businesses.
“The Subang Jaya City Council once offered me a spot at the local market, but that would kill my business. While I work within the system and do my best to follow their advice and recommendations, they also need to offer us some incentives, like an operating licence.
“But I understand their reluctance, because granting licences could lead to an uncontrolled rise of home-based businesses, making it harder for local authorities to manage,’’ he said.

Licensing for accountability
Noorianti Zainol Abidin, founder of Karlicious Food, welcomed the proposal for clear guidelines, highlighting the potential benefits of formalising home-based businesses.
“It’s beneficial because it legitimises us. As business owners, we would become more disciplined and focused on defining the direction of our business,” she said.
Noorianti observed that operating without a licence often results in a more casual approach, whereas obtaining a license fosters a sense of accountability.
“If we operate without a licence, it’s often just for fun and without long-term commitment. But with a licence, we are bound by obligations like paying taxes and licence fees.”
She added that licensing could encourage home-based operators to diversify their offerings and take their businesses more seriously.
Noorianti also emphasised the importance of adhering to standard operating procedures (SOPs), particularly for hygiene and safety.
“For example, we need vaccinations, and we must ensure the raw ingredients we purchase — especially as Muslims — are halal and tayyiban (pure). SOPs are important. In fact, everything in life, including in Islam, needs discipline, SOPs, and commitment,” she said.
With mandatory licensing, she believes better hygiene practices could be enforced, reducing risks of contamination and providing greater assurance to customers.