‘Anti-Ali Baba’ bill to be tabled next year, says minister

 Economy minister Akmal Nasir says the government is considering a new Act to define the practice as a criminal offence.

Economy minister Akmal Nasir told the Dewan Rakyat that various options are being examined with stakeholders to ensure the proposed measures under the new anti-rent seeking law have an effective deterrent effect. (Bernama pic)

KUALA LUMPUR:

A bill to curb rent-seeking or “Ali Baba” practices is expected to be tabled in Parliament by 2027, according to economy minister Akmal Nasrullah Nasir.

He said a study by the ministry found that existing legal provisions, including local authority by-laws, were limited in scope and unable to curb the illegal transfer of licences and contracts to foreigners.

“The economy ministry is conducting a study to develop a regulatory framework and relevant legislative proposals to address rent-seeking or ‘Ali Baba’ practices, which can undermine market efficiency and national productivity.

“The challenge at present is that selling licences, or the ‘Ali Baba’ practice, is not defined as a criminal offence. This is why we need to consider introducing a new Act, so that such practices can be defined as offences under the law,” he said.

He was responding to Syahredzan Johan (PH-Bangi), who asked about the latest developments and timeline for tabling the bill, as well as efforts to combat “Ali Baba” practices.

Akmal said various options, including civil and criminal action, were being examined with stakeholders to ensure that the proposed measures would have an effective deterrent effect.

“Whether the penalties will involve fines or imprisonment will only be known once the framework is finalised, after taking into account all views, including legal considerations,” he said.

He said the ministry was also seeking input from industry players, enforcement agencies, relevant ministries, state governments and local authorities as part of its study, before submitting the proposal to the national planning and development committee and the Cabinet.

The government initially targeted the end of 2024 for tabling legislation to curb “Ali Baba” practices. The deadline was later pushed to the end of 2025.

A separate legislation, the Government Procurement Bill 2025, was passed last year, aiming to stamp out “Ali Baba” practices in public procurement by introducing tougher penalties for all parties involved, including former civil servants, retirees, contractors and ministers. - FMT