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KUALA LUMPUR – The government will proceed with drafting new laws to curb the rent-seeking or “Ali Baba” culture, Prime Minister Datuk Seri Anwar Ibrahim said.
This was decided at the July 10 meeting of the National Economic Action Council (MTEN), which recognised that rent-seeking has a negative impact on the economy.
“Estimated losses (from such practices) reach around 1% of the country’s GDP,” Anwar said in a statement today.
The prime minister said rent-seeking practices are found in procurements, licensing, granting of permits and quotas, as well as the granting of subsidies and grants.
“The Economy Ministry and the Attorney-General’s Chambers, with the involvement of other government ministries and agencies, will study and formulate appropriate laws, policies and strategies to combat rent-seeking,” Anwar said, adding that these proposal would go through the cabinet.
“Rent-seeking” refers to the practice in Malaysia of renting businesses owned by locals to foreigners, according to Economy Minister Rafizi Ramli in June.
He had first announced plans to craft a law against the practice, which he said has been a long-standing problem in the local economy that has not seen discussion towards legislative remedy.
One negative impact of such practices is unhealthy competition between businesses, particularly impacting lower-income groups such as hawkers, when some hawker stall owners “rent” their business to foreigners to operate.
Anwar also said MTEN had agreed to expedite implementation of the Energy Transition Roadmap, which will be a catalyst in transforming Malaysia into a regional leader in new energy sources.
The first phase of the roadmap, with RM25 billion worth of projects, will be launched on July 27. The second phase of the roadmap will be launched in August.
These projects are also expected to create 23,000 high-quality jobs while also reducing carbon emissions. – The Vibes, July 11, 2023
