KUALA LUMPUR: The government aims to table legislation to curb rent-seeking practices, including the misuse of business licences through so-called “Ali Baba” arrangements, in Parliament next year.
Economy Minister Akmal Nasrullah Mohd Nasir said the ministry was assessing whether to introduce a dedicated anti-rent-seeking law or strengthen existing legislation through amendments.
He said the decision would be made after consultations with industry representatives, enforcement agencies, state governments and other relevant stakeholders.
The proposed framework is expected to encompass wider policies, strategies and initiatives to tackle practices that distort market efficiency, promote unfair competition and undermine national productivity.
“Based on current planning, the Economy Ministry intends to table the proposed new legislation or amendments related to anti-rent-seeking in Parliament in 2027,” he told the Dewan Rakyat today.
Akmal was responding to Bangi MP Syahredzan Johan, who asked for an update on the proposed legislation and when it was expected to be brought before Parliament.
He said the ministry was undertaking a comprehensive review to ensure the proposed legal framework would be practical, effective and enforceable.
Given that rent-seeking activities fall within the purview of multiple ministries and enforcement agencies, Akmal said coordination and consensus among the relevant authorities were essential before the proposals could be finalised.
He added that the proposals would have to go through several stages of deliberation and approval, including consideration by the National Planning and Development Committee (JPPN) and the Cabinet, before being submitted to Parliament.
The ministry’s study had also highlighted weaknesses in existing local authority by-laws, particularly provisions intended to prevent the transfer of business licences, he said.
Although such restrictions were already in place, Akmal acknowledged that the existing legal framework had not been sufficient to effectively address rent-seeking practices.
The review also found that leakages involving the allocation of licences, contracts and other facilities could weaken the country’s socioeconomic efficiency.
He said the government was therefore pursuing a more comprehensive approach to address the underlying regulatory gaps that allowed such practices to continue.