KUALA LUMPUR: The government is considering introducing fines and imprisonment under proposed anti-rent-seeking legislation to address the legal gaps surrounding so-called “Ali Baba” business arrangements.
Economy Minister Akmal Nasrullah Mohd Nasir said selling or transferring the use of business licences through such arrangements was not specifically defined as a criminal offence under existing Malaysian laws.
He said the proposed framework could establish civil or criminal liability for those involved, potentially covering licence holders, recipients and intermediaries who profit from facilitating the transactions.
Akmal said the lack of specific criminal provisions posed difficulties for enforcement, particularly when the parties involved agreed to the arrangements even though they could undermine fair competition.
“The challenge is that, at present, the practice of selling licences or engaging in Ali Baba arrangements is not defined as a criminal offence.
“That is why it is important for us to examine anti-rent-seeking legislation so that such practices can be properly defined as offences,” he told the Dewan Rakyat today.
He was responding to a supplementary question from Bangi MP Syahredzan Johan, who asked whether the proposed law would penalise licence holders, recipients and intermediaries who benefited from such deals.
Akmal said the ministry was assessing various legal approaches, including civil and criminal provisions, to establish effective deterrents rather than simply penalising individual parties.
“Whether the punishment involves fines, imprisonment or other measures will only be known once we have completed the framework and considered all views, including legal perspectives,” he said.
He stressed that the proposed legislation should go beyond those directly involved in licence transactions and address the wider mechanisms that allow rent-seeking practices to persist.
Responding separately to Temerloh MP Salamiah Mohd Nor on corruption involving public officials and politicians, Akmal said bribery offences could already be prosecuted under existing laws.
However, he said rent-seeking arrangements presented a different challenge because some transactions might not fall within the scope of current criminal provisions.
Such practices could weaken genuine business capabilities by allowing individuals to profit from economic opportunities without developing the competitiveness needed for sustainable growth, he added.
Akmal said cooperation from all parties, including opposition lawmakers, would be necessary to ensure the proposed measures could effectively deter rent-seeking.
