The economic and social bane of rent-seeking


Estimated losses from rent-seeking reached around 1% of the country’s gross domestic product (GDP), equivalent to RM17.9bil of GDP (nominal GDP in 2022: RM1.791 trillion). — Reuters

RENT-SEEKING has been around for a very long time. Breaking it is not going to be easy unless the government has a strong political will to work out effective regulations to stem this unhealthy and unproductive behaviour.

It is encouraging to note that the government will proceed with drafting new laws to curb the rent-seeking or “Ali Baba” culture, according to Prime Minister Datuk Seri Anwar Ibrahim.

Save 30% OFF The Star Digital Access

Monthly Plan

RM 13.90/month

RM 9.73/month

Billed as RM 9.73 for the 1st month, RM 13.90 thereafter.

Best Value

Annual Plan

RM 12.33/month

RM 8.63/month

Billed as RM 103.60 for the 1st year, RM 148 thereafter.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Insight

Planters: Then and now
Trump wants Americans to buy tiny cars. Good luck with that
China, five years on
Decent 3Q25, but a challenging 2026 awaits
Beijing or Global South consensus?
Sharing resources� �Malaysia’s next reform test
Future of digital is green
ARM-ing for the future
High cost of retirement
Stemming the AI takeover

Others Also Read