PETALING JAYA: The government is considering a legal framework to curb illegal business activities involving foreign nationals, including rent-seeking and “Ali Baba” arrangements.
The decision was reached during the third 2026 meeting of the Special Task Force to Facilitate Business (Pemudah), co-chaired by Economy Minister Datuk Seri Akmal Nasrullah Mohd Nasir, Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar and Federation of Malaysian Business Associations (FMBA) adviser Datuk Wira Dr Ameer Ali Mydin.
In a statement, the Economy Ministry said the meeting examined issues including the misuse of immigration passes and visas, the use of proxies, licence rentals, as well as rent-seeking and “Ali Baba” practices involving foreign nationals, which it said undermine fair competition and the sustainability of local businesses.
The meeting agreed on an intervention strategy based on a compliance, monitoring and empowerment (3P) approach.
The strategy includes strengthening vendor compliance, improving data sharing and integrated enforcement among government agencies, adopting risk-based monitoring, and enhancing industry capabilities to identify and report non-compliance.
The Ministry of Human Resources (Kesuma), together with relevant government agencies, will further refine and coordinate follow-up actions.
Meanwhile, the Economy Ministry said it is refining a proposed legal framework to curb rent-seeking practices, including assessing whether new legislation is needed or whether existing legal provisions should be strengthened.
The meeting noted that Malaysia climbed to 15th place in the IMD World Competitiveness Ranking 2026, up from 23rd in 2025.
The ministry said Pemudah would continue pursuing targeted regulatory reforms to improve government efficiency, enhance regulatory quality and facilitate doing business, including by aligning reforms with the World Bank’s Business Ready (B-Ready) framework.
The reforms are aimed at supporting Malaysia’s goal of becoming one of the world’s 12 most competitive economies by 2030.
Pemudah, jointly administered by the Economy Ministry and the Malaysia Productivity Corporation (MPC), serves as a public-private platform to improve the ease of doing business through regulatory reforms and practical, high-impact solutions.
