PETALING JAYA: The proposed anti-rent seeking law must have bite, says trade chambers.
“We expect this to send a really strong signal but we’re concerned that this legislation doesn’t have enough teeth – so it (the government) has to show it is quite serious and send the right message to those rent seeking,” said Malay Economic Action Council (MTEM) senior fellow Ahmad Yazid Othman (pic).
Ahmad Yazid said Alibaba culture runs counter with the objective of providing fair opportunities to genuine bumiputra companies, and it does not really create the intended strategic collaboration.
He said it is important to determine genuine companies and ensure only those which are licensed and have proper shareholding structure are given jobs.
“The government needs to do some quality and effective monitoring and enforcement so we can know who is not doing what they’re supposed to do, and are taking shortcuts at the expense of real traders and businessmen who can actually gain and earn from the commission in the industries they operate, particularly those related to government and government-linked companies,” he said.
SME expert Datuk Koong Lin Loong said that the tax leakages caused by the shadow economy would cost the country a significant amount of money annually, adding rent-seeking also drives foreign investors away and increases costs of doing business.
“This (legislation) is a good way to distance our country from the rent-seeking practice which will be good for foreign direct investment (FDI). The small and medium enterprises (SME) would also benefit from it,” he said.
Koong also said that to ensure the effectiveness of the legislation, the National Economic Action Council (MTEN) could play its role as a monitoring body.
“There would be no need to establish another government body to monitor the implementation of the legislation. The mechanism of the legislation can be done by practising a more transparent open tender mechanism, while having regular assessment by the authorities,” he added.
Meanwhile, Kuala Lumpur and Selangor Indian Chamber of Commerce President Nivas Ragavan said whistleblower protection is crucial as it will encourage individuals to come forward and report rent-seeking activities.
“Offering legal safeguards and incentives to whistleblowers should be considered by the authorities,” he said.
“By implementing clearer and more straightforward regulations, the government can minimise discretion and ambiguity, making it more difficult for individuals or businesses to exploit loopholes,” he added.
He said implementing the Procurement Act would also curb leakages of public funds.
