Rent-seeking, characterised by the exploitation of the sociopolitical environment for personal wealth gain without contributing to the market, may soon face legislative scrutiny in Malaysia. Economy Minister Rafizi Ramli has announced plans to introduce a law targeting rent-seeking activities, aiming to curtail such practices prevalent across various sectors.
In response to inquiries from Members of Parliament, Rafizi revealed that the government is actively studying the framework for legislation to address rent-seeking issues. The proposed law seeks to address concerns related to “Ali Baba” arrangements, where entities gain undue advantages through manipulative practices without genuine contributions to the economy.
“The aim is to gain clear perspective on the Ali Baba related issues as it involves various sectors and requires appropriate legal actions,” Rafizi said. He emphasised the importance of comprehensive legal measures to tackle rent-seeking behaviors effectively.
The proposed legislation, slated for tabling in Parliament by year-end, aims to fill the existing legislative gap in addressing rent-seeking practices. Despite existing laws like the Malaysian Anti-Corruption Commission Act 2009 and the Competition Commission Act 2010, which touch upon aspects related to rent-seeking, there remains a need for a dedicated law expressly restricting such activities.
Rafizi assured that the drafting process of the Bill will incorporate inputs from various stakeholders, ensuring comprehensive coverage and effectiveness in combating rent-seeking practices.
