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...