11-7-2023 (KUALA LUMPUR) Prime Minister Datuk Seri Anwar Ibrahim has revealed that a proposed law is under consideration to combat the prevalent “Ali Baba” culture and rent-seeking activities in Malaysia. These practices are estimated to cause losses of approximately 1% of the country’s Gross Domestic Product (GDP).
Anwar highlighted that rent-seeking activities, such as procurement, licensing, permit and quota awards, subsidies, and grants, contribute to significant economic losses. The negative impact of the “Ali Baba” culture on the economy has prompted the government to take decisive action.
To address this issue, the Ministry of Economy and the Attorney General’s Chambers will conduct a comprehensive study. A policy and legal strategy will be formulated to curb rent-seeking activities, and the proposal will be presented to the Cabinet for further consideration.
Anwar shared this information following discussions held during the National Economic Action Council (MTEN) meeting on Monday (July 10). The meeting also emphasized the need to accelerate the implementation of the National Energy Transition Roadmap (NETR) as a means to position Malaysia as a regional leader in renewable energy.
As part of the NETR, 10 strategic and high-value national flagship projects will be initiated during the first phase, with an expected investment value of RM25 billion. These projects, aligned with the National Energy Policy 2022-2040, aim to create 23,000 high-value employment opportunities.
Phase One of the NETR is scheduled for launch on July 27, followed by Phase Two in August. The Prime Minister emphasized that the MTEN will continue to develop new initiatives and measures to overcome economic challenges. Additionally, efforts will be made to improve governance and implement structural reforms to enhance Malaysia’s economic potential.
