KUALA LUMPUR, Jan 14 — The Small and Medium Enterprises Association of Malaysia (Samenta) has condemned the recent raid and immediate closure of a hotel in Melaka over social media allegations that it was “gay-friendly,” warning that such actions threaten Malaysia’s business-friendly reputation ahead of Visit Malaysia Year (VMY) 2026.

The integrated operation, conducted yesterday by the Melaka Islamic religious affairs department (Jaim) and the Hang Tuah Jaya Municipal Council (MPHTJ), saw the hotel’s business license cancelled, despite officials confirming that an inspection of 37 rooms found no breaches of shariah criminal law.

In a statement, Samenta national president Datuk William Ng said the decision to penalise a business based on unproven allegations is part of a “disturbing trend.”

“We must not allow ‘trial by social media’ to dictate enforcement actions that can cause irreparable reputational and financial damage to businesses,” Ng said.

According to news reports, state religious affairs executive councillor Rahmad Mariman said he ordered the investigation after online claims that the hotel was listed as “gay-friendly” drew concern on social media.

He confirmed the hotel’s license was seized to facilitate further investigation and the owner was summoned for an explanation.

Today, Ng argued that the closure order and license seizure should follow a proper investigation, not precede it.

“The right to be heard is a fundamental principle,” he stated, calling for the immediate return of the license.

Samenta highlighted that such arbitrary actions create an environment of unpredictability that could drive away both local and foreign investors, undermining the government’s target of attracting 47 million visitors for VMY 2026.

“As a Unesco World Heritage site, Melaka is a cornerstone of Malaysia’s tourism brand. Reports of moral policing targeting the hospitality sector travel fast globally,” Ng warned, noting that international travellers seek destinations governed by the rule of law.

The incident follows heightened public scrutiny of LGBTQ-related events, including the recent cancellation of a “Glamping with Pride” event by an NGO, which cited safety concerns after receiving explicit threats.

While urging enforcement agencies to act with fairness, Samenta also reminded business owners “to remain vigilant of cultural sensitivities” to avoid unnecessary friction.