Govt moves to criminalise 'Ali Baba' practices

KUALA LUMPUR: The Economy Ministry plans to table new legislation or amendments to existing laws to curb "Ali Baba" practices and rent-seeking in Parliament next year.

Economy Minister Akmal Nasrullah Mohd Nasir said existing laws, including local authorities' by-laws prohibiting licence transfers, were inadequate to address the practice.

"The challenge right now is that the practice of selling licences or these 'Ali Baba' arrangements is not defined as a criminal offence.

"Therefore, assessing the need for an anti-rent-seeking law is important to enable the practice to be defined as an offence," he told the Dewan Rakyat today.

Akmal said rent-seeking could undermine socioeconomic efficiency through leakages in the issuance of licences, contracts and facilities, weakening competition and preventing local businesses from building genuine capacity.

The ministry is studying whether to introduce a new anti-rent-seeking law or amend existing legislation, with the process requiring coordination among ministries, agencies and other stakeholders.

Akmal said cases involving elements of corruption should be reported and dealt with under existing laws where applicable.

He said that the proposed legislation should target the practice itself, rather than focus solely on those giving or receiving benefits.

He also called for support from all parties, including the opposition, and said cooperation with state and local governments was needed to eradicate rent-seeking.

Akmal was responding to Syahredzan Johan (PH-Bangi), who asked for an update on the proposed legislation, including whether it would take the form of a new Act or amendments to existing laws, and when it would be tabled.