SELANGOR exco member Ganabatirau Veraman has questioned the Finance Ministry’s (MOF) move to ask for the equity of 51% of companies to be given to Bumiputeras.
“Is it necessary for the MOF to set such conditions? This will force local companies to sell their equities to Bumiputeras and no longer own majority shares despite the fact that these companies are built on the proceeds of their hard work,” said the Kota Kemuning assemblyman in a Facebook post.
Under the existing rules, freight forwarders with custom licences registered before 1976 are exempted from any Bumiputera equity requirement.
For those registered between 1976 and 1990, it must have a 30% Bumiputera equity and those registered after 1990 must have 51% Bumiputera equity.
Those with International Integrated Logistics Services (IILS) customs licences, however, do not have any Bumiputera requirement.
However, the Finance Ministry this year said the Bumiputera equity requirement will now be applied to all licence holders, including those in IILS.
It gave no percentage indication even though companies are required to comply by Dec 31.
On Sept 23, news portal Free Malaysia Today had reported a freight forwarders association demanding the Government clarify the 51% Bumiputera equity proposal.
The Federation of Malaysian Freight Forwarders president Alvin Chua was quoted saying that the requirement was announced by former prime minister Datuk Seri Najib Razak back in 2018 and was said to be reviewed last year, but there had been no announcement since.
The association had further suggested the deadline be deferred to the end of next year.
“The Government’s action should be criticised because it is biased and prioritises foreign companies while discriminating against local companies,” said Ganabatirau.
“Even the previous 30% quota had been a pressure on local industry players and is clearly leaving local entrepreneurs behind.
“Is this a method to ‘destroy’ non-Muslim businesses, especially logistics businesses?
“Instead of coming up with such nonsensical conditions, the MOF should protect local companies by granting equity ownership exemptions instead of urging these companies to relinquish majority ownership.”
Ganabatirau further expressed his hopes that the Government will re-examine the decision and not discriminate between local and foreign companies.
“Do not damage the business of local companies, especially non-Bumiputera owned companies. The Government needs to encourage healthy competition to ensure a conducive and fair business environment.
“Don’t let such biased policies discourage foreign investment as this will affect the country’s economy,” he said. – Sept 24, 2021
Photo credit: RocketKini
