Security industry group urges residents associations to hire only licensed firms

A system created for security that ignores basic safety requirements protects no one.
PIKM's president warns that cutting corners on security creates false confidence rather than actual safety.
Mark

Why would a residents association ever choose an unlicensed guard over a licensed one? It seems like an obvious risk.

Mimi

Cost is the main driver. Licensed security companies have to pay salaries, benefits, insurance, training—all the things that make the system legitimate. An unlicensed individual or fly-by-night firm can undercut that significantly. For a residents association managing a tight budget, the temptation is real.

Luke

But we should be clear about what PIKM is actually reporting here. They say they've received complaints about unlicensed guards. How many complaints? From which communities? The statement doesn't give us numbers or specifics.

Mimi

That's fair. The association is raising a concern based on what they're hearing, but they're not presenting a comprehensive audit of the problem. It's a warning based on pattern, not a full accounting.

Mark

What happens if something goes wrong—if an unlicensed guard commits a crime or breaches a resident's privacy?

Mimi

That's the vulnerability. There's no regulatory framework to hold anyone accountable. No training standards were met, no background check was done, no company insurance exists. The residents association might have a contract with the individual, but that's a civil matter, not a regulatory one.

Luke

And we don't know how widespread this actually is. PIKM is the industry group—they have an interest in pushing people toward licensed firms. That doesn't mean they're wrong, but it's worth noting their position in this.

Mark

So what's the actual ask here?

Mimi

PIKM wants local authorities to check licence status before approving community schemes, and to enforce against unlicensed operations. They're also offering to help residents associations find legitimate alternatives.

Luke

The enforcement piece is the real test. If local authorities don't actually tighten monitoring, this statement is just a warning that goes unheeded.

  • PIKM's president has issued a formal warning: residents associations that hire unlicensed guards or contract with unregulated firms are violating Home Ministry requirements and exposing their communities to serious harm.
  • The danger is not abstract — unlicensed guards gain intimate access to residents' schedules, homes, and security infrastructure, all without background checks, training standards, or any chain of accountability.
  • Cost-cutting is driving the practice, but legitimate security work carries real obligations: proper salaries, statutory contributions, training, screening, and supervision — none of which unlicensed operators provide.
  • PIKM is calling on local authorities to verify security provider licences before approving or renewing permits for gated and guarded communities, and to enforce more aggressively against unlicensed operations.
  • The association has offered to partner with authorities and residents groups to build a more professional and compliant industry — but warns that without active enforcement, the appearance of security will continue to substitute for the real thing.

Across Malaysia's residential communities, a quiet compromise has taken root: security guards and firms operating outside the law, hired not for their competence but for their cost. This week, the Malaysian Security Industry Association (PIKM) gave voice to what that compromise truly means — that the person standing watch at the gate may be unscreened, untrained, and unaccountable, holding access to the very lives they are meant to protect. It is a reminder that safety, when treated as a line item to be reduced, can become its own form of risk.

Malaysia's security industry association, PIKM, has stepped forward this week to challenge a practice quietly spreading through the country's residential communities: the hiring of guards and security firms that operate without regulatory approval, chosen primarily because they cost less than their licensed counterparts.

PIKM president Datuk Mohammad Ubaidillah Enam @ Iman framed the issue not as a matter of paperwork, but of genuine danger. Unlicensed guards — whose qualifications may be entirely unverified — are granted access to residents' homes, daily routines, and the security systems of entire neighbourhoods. Without proper screening, training, or oversight, that access becomes a liability rather than a safeguard. The association has received complaints about such operators, and the pattern is consistent: corners cut on cost, corners cut on accountability.

Legitimate security work is neither cheap nor simple. It demands fair wages, statutory contributions, background checks, training, supervision, and welfare provisions. When a residents association bypasses all of this for an unlicensed alternative, it does not merely save money — it dismantles the very structures that make security trustworthy. If something goes wrong, there is no insurer, no regulator, no clear path to accountability.

Mohammad Ubaidillah has called on local authorities to make licence verification a condition of approving or renewing permits for gated and guarded residential schemes, and to enforce more rigorously against unlicensed operators. PIKM has offered to work alongside authorities, the Home Ministry, and residents associations to raise standards across the industry.

His closing message carried a quiet urgency: do not wait for a crisis. A security arrangement that fails to meet basic legal and professional standards is not protection — it is the performance of protection, leaving residents exposed behind a reassuring facade.

Malaysia's security industry association is pushing back against a practice it says has become common in residential communities: hiring guards and security companies that operate outside the regulatory framework, often simply because they cost less. The Malaysian Security Industry Association, known as PIKM, issued a statement this week warning that residents associations cannot simply appoint individuals as security guards or contract with unlicensed firms without approval from the Home Ministry and compliance with national regulations.

The concern runs deeper than mere bureaucratic compliance. Datuk Mohammad Ubaidillah Enam @ Iman, PIKM's president, framed the issue as one of fundamental risk. When a residents association cuts corners on security to save money, it is gambling with something that cannot be replaced: the safety of families, their homes, and their daily routines. PIKM has received complaints about unlicensed companies and individuals whose qualifications as security guards are unclear or unverified. These guards, by virtue of their position, gain access to residents' schedules, their homes, and the security infrastructure of the entire community. Without proper screening, training, and accountability structures in place, that access becomes a vulnerability rather than a protection.

The economics of legitimate security work are straightforward and unglamorous. Professional services require paying guards a proper salary, making statutory contributions on their behalf, funding their training, conducting security screening, maintaining supervision, and ensuring their welfare. These costs add up. When a residents association opts instead for an unlicensed guard or a cut-rate unlicensed firm, it is not simply saving money—it is removing the safeguards that make security work trustworthy. The person standing at the gate may have no background check. The company may have no insurance, no training standards, no oversight. If something goes wrong, there is no clear chain of accountability, no recourse, no system designed to prevent it from happening again.

Mohammad Ubaidillah called on local authorities to strengthen their oversight. Before approving or renewing permits for gated communities and guarded residential schemes, authorities should verify the licence status of the security provider. Enforcement against unlicensed operations should be tightened. The message was clear: this is not a problem that will solve itself through market forces or good intentions. It requires active monitoring and enforcement.

PIKM has offered to work alongside local authorities, the Home Ministry, and residents associations themselves to ensure that communities receive security services that are both professional and legitimate, tailored to local needs. But the association's president ended with a warning that carries an implicit indictment of the current state of affairs. Do not wait for a crisis to act. If a security system fails to meet basic safety requirements and regulations, then it is not actually protecting residents at all—it is merely creating the appearance of protection while leaving them exposed.

Residents associations should appoint only security companies that are licensed and approved by the Home Ministry. Directly appointing individuals or using unlicensed companies on the grounds of cost is not the right approach.
— Datuk Mohammad Ubaidillah Enam @ Iman, PIKM president
If a system created in the name of security does not comply with basic safety requirements and regulations, the question is whether it truly protects residents or merely gives them a false sense of security.
— Datuk Mohammad Ubaidillah Enam @ Iman, PIKM president
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