Finance Ministry gives 28 Bumi furniture suppliers another chance

Updated 4 years ago · Published on 11 Sep 2019 9:20PM · 3 Comments

Deputy Finance Minister Amiruddin Hamzah says of 33 companies that did not comply with product certification standards, 28 were in the process of achieving them. – The Malaysian Insight file pic, September 11, 2019.

THE Finance Ministry has given 28 Bumiputera companies a second chance to obtain the necessary certification for them to continue supplying furniture to government agencies, in response to appeals by the companies after their contracts were revoked.

The government had also removed the companies from its list of Centered Panel Contract (KPB), under the ministry.

The contracts of these companies were cancelled after they had failed to obtain the product certification services (PCS) from Forest Research Institute Malaysia (FRIM).

“The ministry takes noted of the plight of these companies, which have yet to obtain certification for their products.

“As such, the ministry has decided to give them until December 31 to obtain the PCS from FRIM,” said Deputy Finance Minister Amiruddin Hamzah in a statement.

He said that 54 companies had successfully obtained the FRIM PCS by June 30, as stipulated.

He added that an update showed that of the remaining 33 companies in the KPB list, 13 firms have obtained the certification, while 15 others are in the middle of having their products being inspected by FRIM.

Five other companies did not apply to FRIM for the certification at all, but they can still make their appeal to the ministry, and apply for the FRIM certification within the extended deadline, said Amiruddin.

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

In a statement, the council 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, which decided to cancel the contracts of 33 out of 87 Bumiputera companies on the KPB list.

“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.

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.

Meanwhile, Amiruddin said the ministry had listed 87 Bumiputera furniture companies for three years from July 1, 2018, to June 30, 2021.

However, these companies were told to obtain the FRIM certification within the first year of their contract, which was by June 30, 2019.

“Failure to complete this means these companies will be dropped from the KPB list,” said the deputy minister, adding the FRIM certification was a new initiative by the government to strengthen the Bumiputera furniture industry, ensuring their products are of good quality and can compete globally. – September 11, 2019.

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Comments

  • This 27 companies not only need to be spoon fed but they seem that they are entitled to preferential treatment. They literally have contracts handed down to them on a silver platter. And yet... yet, these irresponsible companies cant even fulfill a simple requirement of PCS validation by FRIM! How lazy can they get? Do they expect the MOF to apply and get the certification from FRIM on their behalf.. But the moment they are dropped from the KPB list... these irresponsible companies using the Petra association banner scuttle to MTEM and pour their complaints!! Just imagine the type of the complaints.... the government unfairly dropped us from the KPB list... and without investigating the cause, the so called MTEM chief executive, Ahmad immediately played up the blame game and pointed the finger at the MOF! Where is the professionalism and integrity of Petra & MTEM? How can these associations or councils expect to prosper when you have chief executives like this Ahmad who thinks he is doing justice?! They are not doing justice but injustice to these companies.. why? because at the end of it all, these lackadaisical companies will never learn and will do things thats goes against governance and good practices. At this rate, the furniture industry is slated to suffer.. MTEM should educate such companies so that in future these companies would behave responsibly. If 54 bumiputera companies managed to get their FRIM PCS by 30 June, what excuse do the remaining companies have? Some have not even bothered to apply for the certification but expect projects to fall on their laps.. its time to cha he la... its time for the MOF and MTEM to play a bigger role and educate Petra and its affiliates. MOF should have education programmes to change the mindset of all its stakeholders..

    Posted 4 years ago by Kampung Boy · Reply

  • Tak malu kah? U r not following the requirement and thus disqualified. Standard procedure must follow before u r qualified. If u r lazy to apply then better don't do govt business. Why so many bumi companies have applied successfully but remaining 33 not. Its either they are not really in the business but we're given the projects by cronies. So they are possibly politically linked companies in past but not likely to get any more business after GE 14. So now make it up a political issue. Possibly Petra Committee also BN supporters , want to make up a political issue now. Good for nothing lah.

    Posted 4 years ago by James Wong · Reply

  • Forever depend on government without it they die it's a new way turn everything into a political issue and this government with no backbone would cave. Ingenious 5 star way to turn business into open blackmail should be first in the world. Bravo guy's keep living in your hole.

    Posted 4 years ago by Steve Low · Reply