Trade chambers: Laws without bite won’t negate impact of rent-seeking

PETALING JAYA: Trade chambers are calling for a proposed anti-rent seeking law to have more teeth in order to send a strong signal against rent-seeking activities in the country. Malay Economic Action Council (MTEM) senior fellow Ahmad Yazid Othman (pic) expressed concerns that the legislation may not be effective enough to address the issue. He emphasized the need for the government to take serious action to combat rent-seeking and protect fair opportunities for genuine businesses.

Ahmad Yazid Othman further explained that the current culture of Alibaba, which prioritizes collaboration with genuine Bumiputra companies, contradicts the objective of providing fair opportunities. He stressed the importance of identifying genuine companies and ensuring that only those with proper licenses and shareholding structures are given jobs. To achieve this, he called for effective monitoring and enforcement by the government.

SME expert Datuk Koong Lin Loong highlighted the negative impact of rent-seeking on the economy, including tax leakages and increased costs of doing business. He expressed support for the proposed legislation, stating that it would distance the country from rent-seeking practices and attract more foreign direct investment (FDI). Koong also suggested that the National Economic Action Council (MTEN) should play a role in monitoring the implementation of the legislation, without the need for establishing another government body.

Kuala Lumpur and Selangor Indian Chamber of Commerce President Nivas Ragavan emphasized the importance of whistleblower protection to encourage individuals to report rent-seeking activities. He suggested offering legal safeguards and incentives to whistleblowers as a means to address the issue. Ragavan also emphasized the need for clearer and more straightforward regulations to minimize discretion and ambiguity, making it harder for individuals or businesses to exploit loopholes. He further advocated for the implementation of the Procurement Act to curb the leakages of public funds.