PETALING JAYA: The Anti-Rent Seeking Bill is targeted to be brought to the Dewan Rakyat by year-end but stakeholders hope that it can be expedited.
They said speeding up the proposed legislation was necessary to weed out the “Ali Baba” culture, a way of making money by renting business licences or permits to those who are not eligible, such as foreigners.
Malay Economic Action Council senior fellow Ahmad Yazid Othman said the Anti-Rent Seeking Law was long overdue.
“We would like some detailed engagement with stakeholders to ensure that having this Act will actually bring value to everyone. So we need to determine what is considered sabotage and what is considered protecting cartels and ensuring that wealth is well distributed among inter-communities and intra-communities as a result of this Act,” he said.
Malaysian Federation of Hawkers and Petty Traders Association president Datuk Seri Rosli Sulaiman said the proposed law must have bite when it comes to enforcement.
It must also be comprehensive and allow those involved in the Ali Baba practice, including business licence holders, to be charged, he said.
“Ali Baba practice should also include contractors who subcontract a project to another company and middlemen practices,” he added.
Associated Chinese Chambers of Commerce and Industry of Malaysia president Tan Sri Low Kian Chuan said the law would help reduce hidden business costs and improve market efficiency.
“We welcome the government’s proposal to table the law, as pervasive rent seeking reduces economic efficiency through the misallocation of resources.
“Individuals and firms are known to have spent vast amounts of money to lobby and convince bureaucrats and regulators to provide some forms of protection, monopolistic structure, or restrict free entry or competition so that some industries or people can realise economic rent.
“We believe that less involvement and intervention, as well as bureaucratic, policy and regulatory procedures aimed at liberalisation, deregulation and transparency, can reduce the opportunities for rent-seeking,” he added.
Low said this, coupled with the eventual enactment of the Government Procurement Act, would be a positive step in the right direction to curb excesses such as possible corruption and patronage when bidding for government contracts.
The Federation of Malaysian Manufacturers president Tan Sri Soh Thian Lai said expediting the law was crucial for promoting fair competition, transparency and economic development.
“The phenomenon of rent-seeking has long plagued our economy and unnecessarily increased the cost of doing business in the country, with costs being inflated and processes unduly protracted.
“Having in place an Anti-Rent Seeking Law will further strengthen a business-friendly regulatory environment, which is essential in ensuring the ease of doing business and keeping industries competitive and sustainable,” he pointed out.
He said rent-seeking practices create an uneven playing field by granting unfair advantages to a few people or businesses, undermine competition, and hinder the growth of genuine businesses, especially small and medium enterprises.
“Implementing a law against rent-seeking helps ensure that businesses succeed based on merit and innovation rather than bribery or corruption,” Soh added.
One key area to focus on in curbing any form of rent-seeking would be government procurement activities, which must be based on open and transparent tenders and putting a stop to any form of direct negotiations, he said.
A 56-year-old sundry shop owner, who only wished to be known as Mohd, admitted that he rented out his business to a foreigner. Seeing nothing wrong with his act, he said the government should not clamp down on such practices as they were just “money-making mechanisms”.
“The person who runs the business (on my licence) is a foreigner. But if he can do it and I cannot, then why not? In the end, I view it as similar to renting out a house,” he said.
