The practice of an ‘Ali Baba’ is to run a genuine business but there is a catch to it. These businesses which have licences and permits are ‘leased and rented” to those who are unable to get permits, especially foreigners.

The ‘Ali Baba’ phenomenon is not practised by local traders only. Ever since the imposition of Bumiputra quotas under the New Economic Policy, non Bumiputra businesses have been using Bumiputra owners and directors as a facade to enjoy incentives.

The Malay Economic Action Council (MTEM) stated that the Ali Baba culture was initially to seek rent by local communities but has evolved to be a plague as foreigners have now been heavily capitalizing on these businesses.

MTEM has proposed drafting an anti Ali Baba law which the Economy Ministry is in favour of and also as a way to take action against Malaysians who illegally rent out licences to foreign workers who do not meet the criteria.

However, the Associated Chinese Chambers of Commerce and Industry of Malaysia declared that the issue of overdependence on foreign workers is not new and the root of the problem is to reduce the cost of doing business and bureaucracy.

Kuala Lumpur and Selangor Indian Chamber of Commerce and Industry also agreed that it is crucial for an anti Ali Baba law to be formulated while the National Association of Human Resources Malaysia (Pusma) called for stricter enforcement.

-THE MALAYSIA VOICE