Government to Table ‘Anti-Ali Baba’ Legislation by End of 2025
Background
The government is set to table a bill to curb "Ali Baba" practices by the end of 2025, according to Economy Minister Rafizi Ramli. The proposed legislation aims to end rent-seeking practices where business owners allow foreign nationals to use their operating licences.
Study on Rent-Seeking Practices
The government is still studying the matter and has identified several issues and obstacles related to rent-seeking, including legal aspects, enforcement, and its impact on the economy and society. The study aims to gain a clearer understanding of the "Ali Baba" practice across various sectors to facilitate more effective legal action.
Drafting Process
The drafting process will involve gathering input through engagement sessions with industry players, enforcement agencies, and other stakeholders. This will ensure that the proposed legislation is comprehensive and effective in addressing the issue of rent-seeking.
Background on "Ali Baba"
The term "Ali Baba" was originally coined from Bumiputera companies winning government contracts, then subcontracting the actual work to non-Bumiputera companies. More recently, it has been used to describe business owners renting their operating licences to foreign nationals.
Timeline
In February last year, Bernama quoted Rafizi as saying the government aimed to present the bill in Parliament by the end of 2024. However, the government has since revised its timeline, with Rafizi stating that the proposed legislation will be tabled by the end of 2025.
Next Steps
The government is expected to present the proposed legislation to Parliament for debate and approval. The proposed measures include formulating new policies, strategies, and comprehensive initiatives to curb rent-seeking practices in the country.
FAQs
Q: What is the purpose of the proposed "Anti-Ali Baba" legislation?
A: The legislation aims to end rent-seeking practices where business owners allow foreign nationals to use their operating licences.
Q: What are the key objectives of the proposed legislation?
A: The key objectives include identifying issues and obstacles related to rent-seeking, including legal aspects, enforcement, and its impact on the economy and society.
Q: Who will be involved in the drafting process?
A: The drafting process will involve gathering input through engagement sessions with industry players, enforcement agencies, and other stakeholders.
Q: When is the proposed legislation expected to be tabled in Parliament?
A: The proposed legislation is expected to be tabled in Parliament by the end of 2025.