The Malaysian Employers Federation (MEF) has stated that any proposed “anti-Ali Baba” law should not negatively impact multinational companies (MNCs) and large foreign companies operating in Malaysia. MEF president Datuk Dr Syed Hussain Syed Husman emphasized the importance of clear communication with the intended target group during the drafting of the legislation.
He stressed the necessity of careful drafting to ensure that the law does not adversely affect MNCs or large foreign companies coming to Malaysia. The target group and communication of the proposed act must be clearly defined, Syed Hussain added in a statement to The Star on Tuesday (Jan 2).
Regarding the issue of foreigners taking over local micro and small enterprises through the Ali Baba culture, Syed Hussain urged the proposed law to address this problem. He expressed concern over the takeover of local Malaysian businesses by foreigners, emphasizing the need for the law to target these business levels.
Economy Minister Rafizi Ramli previously announced that the government is considering drafting a law against the “Ali Baba” business practice. This is also aimed at taking action against Malaysians who illegally rent out licenses to foreign workers without meeting certain conditions.
Syed Hussain highlighted the importance of the proposed law in curbing the illegal renting of licenses to undocumented foreigners. He emphasized the need for strict action against locals renting out their business licenses and premises to foreigners, including canceling their licenses and blacklisting them. Additionally, he suggested severe consequences for the undocumented foreigners involved, such as repatriation and blacklisting.
As for reducing Malaysia’s reliance on a foreign workforce, Syed Hussain recommended a gradual process with sufficient time for businesses to adjust their manpower requirements. He acknowledged the ongoing need for foreign labor in sectors where digitalization and automation are still not applicable to replace manpower.
Syed Hussain also called for government assistance to help micro, small, and medium enterprises (MSME) digitalize, mechanize, and automate their processes and operations. He emphasized the importance of upskilling and reskilling employees to operate new technology, as well as mainstreaming Technical and Vocational Education and Training (TVET) to encourage more youth to enroll in TVET.
