PETALING JAYA: The government is on the right path to fostering fair and equal business opportunities with the proposed anti-Ali Baba Act, as it will target Malaysians involved in the illegal practice of subletting licences to foreign workers, said Economy Minister Rafizi Ramli.
He announced on X that his ministry is drawing up the Act to stop local businessmen from “renting” their business licences and premises to foreign nationals.
Malaysian Employers Federation president Datuk Dr Syed Hussain Syed Husman said any policy has its pros and cons, but it is time for an Act that provides better opportunities for local businesses.
“It will benefit the majority if the practice of leasing licences and premises to foreigners illegally is prevented.”
He said the Act would likely define legal and illegal businesses.
“It is not about restricting legal foreign business ownership, as Malaysia has already removed restrictions on foreign ownership of businesses. Hence the Act is about curbing foreign nationals from working through illegal means.”
Syed Hussain said reducing reliance on foreign labour has to be done in stages, and for the Act to work businesses need to be given sufficient time to adjust their manpower requirements.
“Once the Act is successful in reducing foreign labour, businesses can upskill and reskill their employees. This means the government needs to assist micro, small and medium enterprises (MSME) to digitalise, mechanise and automate their processes to streamline local business operations.”
Syed Hussain said the government has taken the right step by mainstreaming Technical and Vocational Education and Training (TVET).
“The private sector is taking the lead to ensure that the TVET curriculum meets industry requirements, especially through the National Dual Training System Division and Academy In Industry programmes.
“The Higher Education Ministry and private sector have also drawn up a curriculum to reduce the skills gap so that graduates are better prepared to work in the private sector.”
He said this would foster better localisation of industries, particularly MSME, to compete in the Malaysian market.
Federal Territories Malay Hawkers and Small Traders Association president Datuk Mohamad Abdullah lauded the proposed Act.
“The Act will tilt the focus on individuals who dedicate themselves to making a living through business. It is unfair that local traders and hawkers are left on the sidelines, waiting for opportunities while foreigners take centre stage.”
He urged local authorities and city councils to be more strict in granting licences after the Act comes into force.
“Since the Ali Baba practice has been here for a long time, it has raised concerns among local businesses.”
On Dec 21, over 1,000 enforcement personnel conducted a raid in Jalan Silang, a known gathering point for foreign workers in the city. The raid was aimed at curbing illegal activities and verifying the legitimacy of businesses owned by foreigners or those that employed them.