KUALA LUMPUR, July 11 — The government is intensifying efforts to deter rent-seeking, dubbed the “Ali Baba” culture locally, to reduce the drag on Malaysia’s economy, said Prime Minister Datuk Seri Anwar Ibrahim.
He said that during the National Economic Action Council (MTEN) meeting yesterday, the government made significant progress in formulating laws and policies to deter “Ali Baba” behaviour.
“In principle, the Ali Baba culture has a negative impact on the economy and the government is serious about dealing with and eradicating this activity.
“The MTEN meeting on July 10 discussed drafting legislation regarding the Ali Baba (rent-seeking) culture,” he said in a statement today.
He said rent-seeking — characterised by collusion, corruption, and unfair practices — has resulted in estimated losses of approximately 1 per cent of Malaysia’s gross domestic product (GDP).
Rent-seeking has become entrenched in government processes such as procurement, licensing, permit and quota allocation, as well as the distribution of subsidies and grants.
“Therefore, the Ministry of Economy and the Attorney General’s Chambers, with the involvement of government ministries and agencies, will study and formulate appropriate legal policies and strategies to combat rent-seeking activities and present proposals to the Cabinet,” he said.
In conjunction with the government’s determination to tackle rent-seeking, the launch of the first phase of the National Energy Transition Roadmap (NETR) is set to take place on July 27 and followed by the launch of the second phase NETR in August 2023.
Last month, Anwar said that the NETR and Hydrogen Economy and Technology Roadmap (HETR) is expected to be launched in the second half of the year.
He said NETR would be complemented by the HETR, which will pave the way for the achievement of environmentally sustainable, long-term energy security in Malaysia, driven by technological innovation.
