Anti-Ali Baba law should not impact multinationals, large foreign companies, says MEF

PETALING JAYA: Any proposed “anti-Ali Baba” law should have no impact on multinational companies (MNC) and large foreign companies operating in Malaysia, says the Malaysian Employers Federation (MEF).

Its president Datuk Dr Syed Hussain Syed Husman said that the government needs to clearly communicate with the right target group while the proposed legislation is being drafted.

“The proposed anti-Ali Baba law must carefully be drafted so that it has no negative impact on MNCs or large foreign companies coming to Malaysia,” he said.

“It is therefore critical that the target group and communication of the proposed act must be clearly done,” he added in a statement to The Star on Tuesday (Jan 2).

On foreigners taking over local micro and small enterprises through the Ali Baba culture, Syed Hussain said the proposed law needs to put extra emphasis on it to curb the issue.

“It is really sad to see local Malaysian businesses in our streets that are taken over by foreigners, and even small mini markets and some supermarkets. It must be made clear that the proposed law should be targeted at these business levels, said Syed Hussain.

In December, Economy Minister Rafizi Ramli said the government is considering drafting a law against the “Ali Baba” business practice.

This is also to take action against Malaysians who illegally rent out licences to foreign workers without meeting certain conditions.

In response, Syed Hussain said while the proposed anti rent-seeking law is not directly intended to restrict foreign workers, it is necessary to ensure small business operators are unable to rent their licences to undocumented foreigners.

“Illegals (undocumented foreigners) may initially be legally employed but get tempted to enter into business when locals with licences and premises are prepared to rent out both to them,” he said.

Syed Hussain then said that the government should use existing laws to deal against rent-seeking.

“Strict action should be taken against locals renting out their business licences and premises to foreigners, including cancelling their licences and blacklisting them.

“The foreigners involved should be severely dealt with including repatriating and blacklisting them,” added Syed Hussain.

On reducing Malaysia’s reliance on a foreign workforce, Syed Hussain said the process needs to be done in stages by allowing businesses to be given sufficient time to adjust their manpower requirements.

He then said that Malaysia is still in need of foreign labour, especially in some sectors where digitalisation and automation are still not applicable to replace manpower.

“The government needs to assist the micro, small and medium enterprises (MSME) to digitalise, mechanise and automate their processes and operations. Businesses also need to upskill and reskill their employees to operate the new technology adopted by the employers,” he said.

“The government had taken the right step by mainstreaming Technical and Vocational Education and Training (TVET) and encouraging more youth to enrol in TVET,” added Syed Hussain.