KUALA LUMPUR: Rent-seeking in Malaysia appears to be taking on forms beyond conventional “Ali Baba” arrangements, with so-called “Baba-Baba” practices also coming under scrutiny, Economy Minister Akmal Nasrullah Mohd Nasir said.
He said the development highlighted the need for closer examination as the government worked to curb arrangements that allowed individuals to benefit from business opportunities without carrying out the intended commercial activities themselves.
“The practice is no longer just Ali Baba. Even Baba-Baba arrangements are becoming increasingly apparent, and these are matters we need to examine more closely,” he told the Dewan Rakyat today.
Akmal was responding to Bangi MP Syahredzan Johan, who raised concerns about the role of intermediaries in business licence arrangements.
Syahredzan said licences and contracts intended for Bumiputera-owned businesses could sometimes end up with non-Bumiputera operators. He also highlighted cases in which local authority licences issued to Malaysian citizens were allegedly used by foreigners.
He asked whether the government’s proposed measures would extend accountability to intermediaries, rather than focusing solely on those who granted or received the licences.
Akmal did not provide further details on what constituted “Baba-Baba” arrangements, but said the matter warranted further investigation.
He stressed that government efforts should aim to prevent rent-seeking practices from becoming more deeply entrenched, rather than focusing only on individual transactions.
Addressing the issue would require a broader approach and cooperation among different levels of government, he added.
Akmal said state governments and local authorities had important roles to play because they oversee business licensing and related enforcement.
“We need to negotiate with state governments and local authorities so that these rent-seeking practices must be eliminated,” he said.