Govt moves to criminalise 'Ali Baba' practices
Aza Jemima Ahmad, Ahmad Mukhsein Mukhtar
The Malaysian Economy Ministry intends to introduce new legislation or amend existing laws next year to tackle Ali Baba practices and rent-seeking, Economy Minister Akmal Nasrullah Mohd Nasir announced. Current laws, including local authority by-laws restricting licence transfers, are insufficient to tackle the issue. Currently, selling licences or engaging in Ali Baba arrangements is not classified as a criminal offence, making it challenging to assess the need for an anti-rent-seeking law.
Rent-seeking practices can distort socioeconomic efficiency by causing leaks in licence, contract and facility issuance, weakening competition and preventing local businesses from developing genuine capacity, as explained by Akmal. The ministry is reviewing whether to create a dedicated anti-rent-seeking law or amend existing legislation, which necessitates coordination among various ministries, agencies and stakeholders.
Akmal stressed that corruption cases should be reported and addressed under applicable laws, urging all parties, including the opposition, to support the proposed legislation. He also emphasized the importance of working with state and local governments to eradicate rent-seeking. Akmal's comments came in response to Syahredzan Johan (PH-Bangi), who inquired about the proposed legislation's form, whether it would be a fresh Act or amendments to existing laws, and the timetable for its introduction.
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