MCA, Gerakan, SUPP are liars, says Guan Eng over Bumi equity policy

Ravin Palanisamy Ravin Palanisamy Updated 2 years ago · Published on 28 Sep 2021 3:53PM · 3 Comments

Lim Guan Eng today branded MCA, Gerakan and SUPP as liars in accusing him of implementing the 51% Bumiputera ownership requirement for freight forwarding companies during his tenure as finance minister. – The Malaysian Insight file pic, September 28, 2021.

FORMER finance minister Guan Eng has launched a scathing attack against MCA, Gerakan and the Sarawak United Peoples’ Party (SUPP) for accusing him of implementing the 51% Bumiputera ownership requirement for freight forwarding companies. 

This comes after Finance Minister Tengku Zafrul Tengku Abdul Aziz said in Parliament today that the issue was not new as the policy had been decided in 2015.  

“Tengku Zafrul confirmed in Parliament today that the requirement for existing freight forwarding companies and international integrated logistic services (IILS) to forcibly sell off their shares to increase the equity ownership to 51% Bumiputeras was not announced in 2018.  

“This proves that MCA, Gerakan and SUPP lied by implying that I had implemented this ruling during my tenure as finance minister from 2018 to early 2020,” the DAP secretary-general said in a statement today.  

Earlier today, the government decided to extend the 51% Bumiputera equity requirement for freight forwarding companies until December 31 next year. 
Tengku Zafrul said the Finance Ministry had decided to extend the exemption for a second time until December 2022 so that Teraju (Unit Peneraju Agenda Bumiputera) can study Bumiputera involvement in the logistics industry.  

Last week, Lim, who was finance minister during Pakatan Harapan’s 22-month reign, said the proposal to enforce the ownership requirement for freight forwarding companies to obtain customs licenses was brought up during his time in office but he had rejected it, saying it was unconstitutional and unfair to the companies.

Lim expressed his dissatisfaction over double standards in applying the policy for only local-owned IILS and not foreign-owned.  

“Previously, no Bumiputera equity was required for licences held by IILS. However local IILS are required to give up control and have 51% Bumi equity but not foreign-owned ones. This is grossly unfair.  

“Freight forwarding firms registered before 1976 are not required to have any Bumiputera equity, while a 30% quota was imposed on those registered between 1976 and 1990. The 51% Bumiputera equity requirement applies to firms registered after 1990,” he said.  

The former Penang chief minister questioned if MCA, Gerakan and SUPP would take a similar stand as he did, in not forcing logistic companies formed before 1990 to sell their shares to a Bumiputera firm.  

On Monday, Prime Minister Ismail Sabri Yaakob said that the sale of Bumiputera shares or companies will only be offered and sold to fellow Bumiputera consortiums, firms and individuals under a soon-to-be-introduced government measure.

Announcing this in Parliament during the tabling of the 12th Malaysia Plan, Ismail said the equity safety net framework is aimed at ensuring sustainable Bumiputera equity ownership.

According to the government, non-Bumiputeras control 25% of the corporate equity and foreign investors owned 45.5%, while the remaining 12.3% were held by nominees. – September 28, 2021.

Sign up or sign in here to comment.

Comments

  • Bumi equity is non negotiable. It is the very bedrock of shared prosperity. Chinese migrants who choose to make Malaysia their country by citizenship should be very aware of it. Freight forwarding is the natural business of local natives. The Malays have been trading even before Melaka times. There are many sectors reserved 100% for ethnic Chinese like pig rearing. Gambling 4 D even increased by Zafrul for his Chinese by 22 SPECIAL DRAWs. Now gambling is forbidden for Malays but
    Sometime we can see in the kampung Chinese coffee shops with waiters carrying betting slips to help
    buy the 4D tickets. So the money from the Malays flow 100% to the ethnic Chinese.
    Shared Prosperity is not an empty manifesto of the PN government. Now they have been given the mandate the government will have to implement the law of the country. Shared prosperity with 49% for the Chinese and Tamils are very generous. So the Chinese should stop thinking the glass is 51% empty but rather half full and be thankful for the 49%.Nobody forced anyone to apply for licenses or go to go into forwarding. Pig rearing and gambling or pork restaurants are fully 100% for the Chinese. So are wine business and Casinos gambling. Casino business is 100% owned by Chinese and Tamils. Another example of UMNO generosity is when AirAsia was given FREE by UMNO Presiden Tun Dr Mahathir .

    Posted 2 years ago by Shirap Kelisa · Reply

    • How does "shared prosperity" of 51% equity help the poor Malays in the kampungs? 51% equity means coming up with tens and hundreds of millions RM. Who are the Malays who can afford this? So it is about making the few rich and very rich Malays richer. What about the majority of Malays?

      Posted 2 years ago by Ravinder Singh · Reply

  • On Monday, Prime Minister Ismail Sabri Yaakob said that the sale of Bumiputera shares or companies will only be offered and sold to fellow Bumiputera consortiums, firms and individuals under a soon-to-be-introduced government measure. I guess the devil is in the details and implementation.

    Posted 2 years ago by Teruna Kelana · Reply