PUTRAJAYA: The Prime Minister has announced that the government will take action to eliminate the “Ali Baba” culture, which is estimated to cause losses of around 1% of gross domestic product (GDP) to the economy. In order to effectively address this issue, policies and legal strategies will be formulated and presented to the Cabinet by the Economy Ministry and the Attorney General’s Chambers.
During the recently-held National Economic Action Council Meeting, chaired by the Prime Minister, it was agreed upon that tackling the rent-seeking culture was a priority. The rent-seeking behavior refers to individuals or companies seeking to secure state allocations for their own financial gain, without contributing to productivity. In Malaysia, this includes the practice of renting local businesses to foreigners or foreigners illegally using local business licenses.
Procurement, licensing, permits, quotas, subsidies, and grants were cited by the Prime Minister as examples of rent-seeking activities that have negatively affected the economy. Taking swift action, the implementation of the National Energy Transition Roadmap (NETR) initiatives will be expedited to position Malaysia as a regional leader in renewable energy. These initiatives are expected to attract industry participation, stimulate the exploration of new energy sources, and create employment opportunities.
The first phase of NETR will consist of 10 national flagship projects with an investment value of RM25 billion. Moreover, it will generate 23,000 high-value employment opportunities. Phase One is scheduled to be launched on July 27, with Phase Two following in August.
Looking ahead, the Prime Minister emphasized the council’s commitment to formulating new initiatives and measures to overcome economic challenges. These efforts will also prioritize improving governance and implementing structural reforms to maximize the country’s economic potential.
Datuk Seri Azalina Othman Said, the Minister in the Prime Minister’s Department responsible for law and institutional reforms, highlighted the importance of feedback from relevant ministries in drafting the policy. She stated that the ministries must provide their policy papers to the National Economic Action Council. Senate President Tan Sri Dr Wan Junaidi Tuanku Jaafar echoed the sentiment, expressing the need to eliminate the “Ali Baba” culture, which he believes contributed to the failure of the New Economic Policy.
Transport Minister Anthony Loke confirmed that future government policies will be implemented to prevent rent-seeking practices. The focus will be on ensuring that government resources and allocations are utilized effectively to provide value for money.
By taking these steps, the government aims to combat the detrimental effects of the “Ali Baba” culture, boost economic growth, and create a more sustainable and prosperous future for Malaysia.
Credit: The Star : News Feed
