The Small and Medium Enterprises Association of Malaysia said it is highly concerned with recent acts of economic sabotage and has urged the government to consider enacting an Economic Sabotage Act to curb actions by individuals and groups, including politicians, that result in permanent damage to the economy.
The act was first mooted by National Centre for Governance, Integrity and Anti- Corruption in 2018, to address abuses of government contracts and to curb the ‘Ali Baba’ phenomenon. Following a change in government and the Covid-19, the proposed Act was never tabled.
On top of criminalising the ‘resale’ of government contracts and import permits, an Economic Sabotage Act should also target cartels that monopolise government contracts and manipulate prices of essential goods. The association said it would also encourage fairer competition, provide consumers with more choice, and lower the costs of doing business and the costs of living for Malaysians.
The proposed enactment it said was due to the rise of recent arson attacks and organised boycotts on private businesses, an Economic Sabotage Act should also criminalizes acts by individuals and organisations who promotes, encourages or carry on any act of sabotage on businesses. The Act should carry severe custodial penalties to commensurate with the long term repercussion of such acts to the economy and the livelihood of Malaysians it added.
It also noted that current laws do not penalise organised boycott nor do they criminalize acts of encouraging such boycotts. This has allowed perpetrators, including politicians, to continue doing so with impunity, while businesses struggle, employees lose their jobs and livelihoods, and the country’s reputation as a trading nation and investment destination takes a severe
beating.
