Rafizi Anti Ali Baba Law Can Deter Rent Seeking Business Owners

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A proposed "anti-Ali Baba" legislation to end rent-seeking practices can be used against owners found to abuse their business licences, leading to an influx of foreign-controlled establishments in the city centre.
Taking to X (formerly known as Twitter), Economy Minister Rafizi Ramli responded to another X user who raised concerns over an influx of foreigners benefiting from government subsidies or facilities intended for citizens.
"The anti-Ali Baba legislation will allow action to be taken against Malaysians who give 'Ali Baba licenses' to migrant workers without meeting the conditions," Rafizi said today.
He added that Malaysia's decades of dependence on migrant workers have led to them "conquering" certain sectors deemed unpopular among locals.
"This is a national issue, not an issue of migrant workers.
"It started with our dependence on migrant workers. Ask the employers, they will say locals don’t want to do such jobs within certain sectors.
"When there are many migrant workers, our own people (locals) will rent out and give licenses illegally for them to conduct their business," Rafizi said.
On Dec 21, a total of 1,101 foreign nationals were detained for various immigration offences under an integrated operation involving several enforcement agencies around Jalan Silang, Kuala Lumpur.
Kuala Lumpur police chief Allaudeen Abdul Majid reportedly said the operation was conducted by 1,138 personnel - including from the General Operations Force (GOF) Central Brigade, Federal Reserve Unit, Customs Department, Immigration Department and Kuala Lumpur City Hall (DBKL).
‘Part of labour market reforms’
Meanwhile, Rafizi said the "anti-Ali Baba" law would be a part of overall labour market reforms – which include progressive wages, industrial training and finalising a multi-tiered levy system to bring down the number of migrant workers.
“The Economy Ministry, which structures the Malaysia Plan, will finalise its goal of reducing migrant workers through phases by 2030 in the 13th Malaysia Plan.
"All this needs to be balanced so that there is no drastic impact on industries that rely heavily on migrant workers.
"As I have mentioned in my message to employers and the industry, it is coming because we cannot afford to continue like this," said Rafizi.
In July, Prime Minister Anwar Ibrahim indicated the government's plan to end rent-seeking practices that negatively impact the economy, causing an estimated one percent of losses to gross domestic product (GDP).
At the time, Anwar said the task of formulating policies and legislation to stamp out “Ali Baba” practices would be headed by the Economy Ministry and the Attorney-General’s Chambers. - Mkini

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