THE Economy Ministry is studying several components to draft a law to curb the rent-seeking culture, its minister Mohd Rafizi Ramli said.

He said locals have been renting out their businesses to foreigners for a long time without any law to stop the practice.

“We need to solve (the issue) of how foreigners can go on conducting business in the hawker areas. When they are arrested, it is found that most of them are operating using the licence of local citizens, and technically, it is not wrong. 

“When arrested, they say they are employees of local traders. So, our people (citizens) are also the ones who work together (with the foreigners) and allow this to happen, because there is no specific law on business ownership and rent,” he said during the Ministry of Economy’s engagement session with the Federal Territories Department today. 

The rent-seeking issue was brought up during the engagement session by a participant who urged the government to deal with the matter seriously.  

Rafizi said at present, law enforcement with regard to the matter was only subject to the penal code and the Malaysian Anti-Corruption Commission. 

In a press conference after the engagement session, Rafizi said the govertnment was developing preliminary proposals related to the legislation due for presentation at the National Economic Action Council meeting in July. 

“This Ali Baba thing exists from top to bottom. It has been a problem in the economy all this time, but there has been no specific discussion towards the drafting of laws (to curb the matter),” he said, adding that the issue required serious attention. 

Kuala Lumpur Bumiputera Traders and Hawkers Association president Rosli Ibrahim suggested that the law include enforcement against foreigners who broke the rules. 

Rosli, who is also president of the Malaysian Federation of Hawkers and Petty Traders Association, said the Ali Baba practice had resulted in unhealthy competition, making it difficult for hawkers to revive their businesses. – Bernama, June 20, 2023.