Malaysia's Economy Ministry to propose law targeting Ali Baba licence deals
The Economy Ministry will introduce legislation next year to criminalise the sale of licences and other rent-seeking ‘Ali Baba’ arrangements.
In Kuala Lumpur, the Economy Ministry announced plans to table new legislation or amend existing laws to outlaw the practice of selling licences, commonly known as ‘Ali Baba’ deals, in the coming parliamentary session. Minister Akmal Nasrullah Mohd Nasir explained that present regulations, including local authority by-laws, fail to classify such transactions as criminal offences, creating loopholes that erode economic efficiency and competition.
The ministry is evaluating whether to draft a dedicated anti-rent-seeking act or modify current statutes, a process that will involve coordination with other ministries, agencies, and state and local governments. While corruption-related elements will continue to be prosecuted under current legislation, the new proposal seeks to target the rent-seeking mechanism itself rather than only the parties receiving benefits. Akmal called for bipartisan support, including from the opposition, to eliminate these practices. The initiative was prompted by a parliamentary question from Syahredzan Johan seeking an update on the legislative approach and timeline.
Why it matters
It aims to close a legal gap that enables licence trading, which can distort markets and hinder fair competition.
How the sides frame it
MODERATE AGREEMENTAll camps report the ministry’s plan to address Ali Baba licence deals by 2027, but left-leaning coverage stresses the postponement and deterrence angle, centrist coverage frames it as a government initiative to draft a regulatory bill, and right-leaning coverage highlights the proposal as a move to curb practices that undermine economic efficiency and competition.
LEFT
Focuses on the delay until 2027 and the need for a deterrence-oriented framework to close the legal gap on Ali Baba schemes
CENTER
Portrays the government's aim to draft or amend legislation by 2027 to define rent-seeking practices as offences
RIGHT
Presents the proposal as targeting illegal licence deals that erode market efficiency and competition
The left emphasises
- postpone anti-rent-seeking law until 2027
- Ali Baba schemes not yet criminal
- deterrence-oriented framework
The right emphasises
- propose law targeting Ali Baba licence deals
- present regulations fail to classify such transactions as criminal offences
- practices erode economic efficiency and competition
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