Economy Minister Rafizi Ramli was recently reported as saying that his Ministry is drafting a specific law to curb the “rent-seeking” culture in Malaysia’s business and economic structure.
The Minister also astutely pointed out that such practices create a sense of injustice and dissatisfaction in the community.
It is likewise heartening to note that Prime Minister Datuk Seri Anwar Ibrahim in March 2023 had said the Unity Government was reviewing all existing monopolies in the country to ensure that the rakyat enjoys fair and better services.
These are all the right optics. Reform must start from a willingness to consider it, notwithstanding the cynicism from some Malaysians.
Although it is far from perfect, the Unity Government’s willingness to undertake reform and resoluteness to stay the course, compared with its predecessors, is a breath of fresh air.
There must be no let up to reforms, regardless of what the outcome of the upcoming polls in six states are. This has to be kept in mind because it is often easy for reforms to get sidetracked. This happens in every country in the world.
But the Anwar administration should also realise that its desire to review all existing monopolies would hit on a raw nerve among those with vested interests – and they will waste no time derailing such efforts.
What’s even more insidious is that these attempts are often sugar-coated with assurances like: “It’s okay to create new monopolies. Your government is different from your predecessors. Your administration will be able to monitor things better.”
Our leaders may be cajoled “not to rock the boat”, and that they need to be “business friendly” and “not to scare investors away.” These are merely coded references for inertia and avoiding any confrontation – often to the benefits of those with vested interests.
PMX and his Cabinet colleagues should not fall for such sweet talk and fearmongering but wise up to see through these sinister moves for what they truly are. Monopolies and rent seeking should be combated with utmost fervour.
The aspirations from Anwar and Rafizi are on point. Malaysians are often disadvantaged by monopolistic practices and other market distortions that should have gone the way of the dinosaur yonks ago.
It didn’t help that notion like “market forces” and “competition” often get a bad rap these days— especially in countries like ours whose brand of capitalism has unfortunately often hurt the public good.
But it is also true that in some cases, especially those I highlighted above, the free market is the best for all concerned. This is especially so when it comes to staples. The way forward should be on opening up and freeing the market, rather than clamping down further.
Look at how for instance, there is always angst over the price and supply of commodities such as sugar or flour or cooking oil.
Monopolies tend to be detrimental as a whole (though there are exceptions, such as the British National Health Service). And the government must avoid replacing the current slate of distortions with alternatives that are just as bad, if not worse. “Madani Monopolies” are just as bad as the real thing.
The price of inertia is profoundly damning if we understand what is at stake. Rafizi was right that rent-seeking causes anger in our society. The anger will turn to rage and become a cancer that will metastasise if nothing is done to address such wrongs.
When that happens, our leaders may find themselves confronting worse “foes” than their political rivals—as the centre-left and centre-right leaders in Europe and America are starting to find out. Public interests must always come first.
Anwar, Rafizi and the Unity Government should trust their instincts in this matter.
There must be no let-up in the reform process. It’s time to deliver.
The views expressed here are strictly those of Jonathan Fernandez from Kulai.