KUALA LUMPUR (Oct 14): Malaysia aims to table a law that will criminalise rent seeking and the government is studying potential punishment, Economy Minister Akmal Nasrullah Mohd Nasir said.

The ministry is still considering a stand-alone law or amendments to existing legislation to address practices such as the sale or lease of licences through ‘Ali Baba’ arrangements. The approach and penalties will be determined after the study, stakeholder consultations, and legal scrutiny.

“Based on current plans, the Ministry of Economy intends to table new legislation or amendments to laws relating to anti-rent-seeking in Parliament in 2027,” he said on Wednesday.

Akmal Nasrullah was responding to Bangi Member of Parliament Syahredzan Johan (Pakatan Harapan-DAP), who asked about progress in drafting legislation to curb the 'Ali Baba' practices and the timeline for tabling it.

The practice, traditionally understood as Malays fronting an enterprise and non-Malays running the actual operations, is a long-standing problem that has been criticised even by successive prime ministers for inflating project costs and hindering capacity-building.

The proposed regulatory framework would address weaknesses that allow rent-seeking in the award of licences, contracts and other facilities, which the ministry’s study found could undermine socio-economic efficiency, Akmal Nasrullah said.

“The challenge at present is that the practice of selling licences or operating through 'Ali Baba' arrangements is not defined as a criminal offence,” he said, stressing that conduct involving corruption or other offences already covered and should be dealt with by existing laws.

The review includes input from industry players, enforcement agencies, relevant ministries, state governments and other stakeholders. Because rent-seeking cuts across the responsibilities of several ministries and agencies, the proposals require detailed examination and coordination to ensure they are practical and enforceable, he said.

They must also undergo consideration and approval at several levels, including the National Development Planning Committee and Cabinet, before being tabled in Parliament.

“We need support from all parties, including the opposition, because we need to consult state governments and local governments so that rent-seeking practices can, and must, be eliminated,” he added.

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