Bumiputera furniture suppliers’ govt contracts cancelled, says group

Updated 4 years ago · Published on 11 Sep 2019 12:26PM · 8 Comments

The Finance Ministry is reported to have revoked the contracts of 33 Bumiputera companies which supply furniture to the government agencies. – The Malaysian Insight file pic, September 11, 2019.

THE Finance Ministry has revoked the contracts of 33 Bumiputera companies which supply furniture to the government agencies, the Malay Economic Action Council (MTEM) said today.

The council in a statement accused the ministry of acting hastily and unfairly to the Bumiputera Furniture Manufacturing Industry Association (Petra).
 
“We have received complaints from Petra on the action taken by the Finance Ministry. The ministry decided to cancel the contracts of 33 out of 87 Bumiputera companies below the list of Centered Panel Contract (KPB) through an update of companies under the KPB.

“This is inhumane because the reason for the termination is because of the failure to obtain the product certification services (PCS) from Forest Research Institute Malaysia (FRIM).

“The ministry refuses to consider the reason given by the companies, such as the test result from FRIM, but took the easy way of just terminating the contracts,” MTEM chief executive officer Ahmad Yazid Othman said.

“Even more disrespectful, the notice was served via normal post. No phone call, no email and the majority of the listed companies received the letter a few weeks after the date of cancellation. Is this how the new government is behaves?”

Yazid said the 33 furniture companies have been established for more than 20 years.

“They lost their main source of income in the blink of an eye. The KPB policy was to prioritise small and medium Bumiputera companies. Is the PCS certificate now a quality measurement?”

Yazid said Petra has met with the deputy finance minister to discuss the matter but the ministry has yet to take any remedial action.

“An order was issued by the deputy minister but the (situation) is still status quo for now. Is the government willing to help the Bumiputera furniture manufacturing sector or do they want to see the Bumiputera fall short in this industry?

“We hope a reply will be given as soon as possible as the contract tender will be issued next week. We would like to believe that the government does not want to see the Bumiputera neglected.” – September 11, 2019.
 

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Comments

  • When not compliance also can link to inhumane issue? Petra, do u consider that to require your members to stay compliance in order to to supply better products to our government as to be fair to taxpayers.

    Posted 4 years ago by Chong Choong Kian · Reply

  • The world owes them a living, it's always never their fault.

    Posted 4 years ago by Butter Scotch · Reply

  • Don't depend much on government orders

    Posted 4 years ago by It's me GR · Reply

  • This is PETRA side of the story; lets wait what MOF has to say about this, lets not jump to conclusion just yet. Of course those 33 entities cry for fault play but to called it inhumane its a bit off perhaps more appropriately would be inconsiderate or common courtesy.

    Now lets ask ourselves based on PETRA version and was publish here. A total of 87 companies where 54 of them has FRIM certification and these 33 dont. Is the certification required a mandatory item to be extended during the application in the first place. If it is then how did the 33 companies got their contract? Was it through the proper channel or through whom they knew to get it through? Next, comes when MOF knew that these 33 players fall short was there a notification given to them with a grace period that they must compiled and provide the FRIM certification failing which their contract could be terminated? If there arent any notification given then MOF is in a way asking for unnecessary music and painting a picture that part of its mission to made certain quarters pay for non compliance under the pretext of house cleaning which their legal rights no doubt. If you want to nail a person down by the book one must make all possible avenue has been given so that he is cornered without any room to escape.

    To PETRA and the rest this is what the terms playing on a level field is all about. 87 registered companies must met and have all the criteria set and check. If you are the paying for the goods of course you want a product which carries all the certification met, dont you? Anyway as mentioned earlier, lets wait what MOF has to say for all to judge for themselves.

    Posted 4 years ago by Teruna Kelana · Reply

  • country does not owe you all a living. improve and compete. dont use race and religion to get contract

    Posted 4 years ago by . . · Reply

  • You said it all, 20 years in business and the government is still your ONLY customer. That's how NEP failed.

    Posted 4 years ago by CS Lee · Reply

  • Of course the PCS from FRIM is necessary. Just because you are a Bumiputera company that does not give you the right to deplete or destroy our forests. Just comply if you claim to be experienced.

    Posted 4 years ago by Gerard Lourdesamy · Reply

  • This is the warped thinking that has brought Proton to its knees and this is the anti-performance culture that is plaguing Malaysia Airlines, KTM, and many other long-suffering government linked companies. How to perform as a competitive business when you are not allowed to make your suppliers comply to standards and compete? If You cannot choose performers from non-performer because it is inhumane, how will performance improve?

    Posted 4 years ago by BC Lim · Reply