<figure id="attachment_3000117" aria-describedby="caption-attachment-3000117" style="width: 1600px" class="wp-caption aligncenter"><img loading="lazy" class="wp-image-3000117 size-full" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/03/de04d489-shops-stall-fruits-email-pic-040325.webp" alt="" width="1600" height="1000" /><figcaption id="caption-attachment-3000117" class="wp-caption-text">The proposed &#8216;anti-Ali Baba&#8217; legislation is aimed at ending rent-seeking practices whereby business owners allow foreign nationals to use their operating licences.</figcaption></figure>
PETALING JAYA: The government is hoping to table a bill to curb “Ali Baba” practices by the end of this year, according to economy minister Rafizi Ramli.
Rafizi said the government is still studying the matter.
“The proposed measures include formulating new policies, strategies, and comprehensive initiatives to curb rent-seeking practices in the country,” he said in a written parliamentary reply, adding that this may involve enacting a new Anti-Rent-Seeking Act or amending existing legislation.
“The government aims to table the proposed amendments (to the existing laws) or new legislation in Parliament by the end of 2025.”
He was responding to Alias Razak (PN-Kuala Nerus), who asked for an update on the drafting of the proposed law to address the growing practice of rent-seeking by foreigners in the small and medium-sized enterprise sector.
Rafizi explained that the primary objective of the study is to identify issues and obstacles related to rent-seeking, including the legal aspects, enforcement, and its impact on the economy and society.
“The study also aims to gain a clearer understanding of the Ali Baba practice across various sectors to facilitate more effective legal action,” he said.
He said the drafting process will involve gathering input through engagement sessions with industry players, enforcement agencies, and other stakeholders.
In February last year, Bernama quoted Rafizi as saying the government aimed to present the bill in Parliament by the end of 2024.
Earlier, he had said the proposed legislation to end rent-seeking practices could be used against business owners who abuse their licences, which had led to an influx of foreign-controlled establishments in the city centre.
“Ali Baba” is a term 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.

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