Malaysia needs Anti-Ali Baba Act to tackle illegal foreign-run businesses, experts say

The ongoing issue of illegal businesses operated by foreigners in Kuala Lumpur, including those run by the Rohingya community in Selayang, will not be resolved without the implementation of an Anti-Ali Baba Act, according to legal experts.

Professor Dr. Salawati Mat Basir, an international law expert at Universiti Kebangsaan Malaysia (UKM), stated that foreign traders continue to operate openly because many premises are registered under local names. This practice, known as 'Ali Baba' operations, allows foreigners to circumvent regulations by using Malaysians as fronts for their businesses.

The proposed Anti-Ali Baba Act aims to address this by penalizing Malaysians who rent out their names to foreign entrepreneurs. Enforcement of such legislation is seen as crucial to dismantling these illicit networks and restoring fair competition for legitimate businesses.

Without stronger legal measures like the Anti-Ali Baba Act, authorities face an uphill battle in curbing the proliferation of illegal foreign-owned enterprises, which often operate outside tax regulations and can displace local businesses.