"Foreign textile, handicraft and costume jewellery companies have affected the good business which used to be enjoyed by local traders during festive seasons.
"The products sold in such carnivals are cheap as they do not pay the norm in customs duties. It is not fair for foreign traders to come into our country and take away the local trader's business," he said.
Indian trade fairs organised by local event management companies were originally meant to be participated by manufacturers from India, Pakistan and Bangladesh to introduce products like textiles, handicraft and costume jewellery to local traders.
Vasantharajan said the objective had changed over the years as foreign traders involved in the trade fairs started doing retail sale for local customers.
"I urge the relevant authorities to stop issuing permits to local event management companies that bring in foreign traders and action must be taken against those entering Malaysia without proper working permit and products without customs duties," he said.
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