LIM Guan Eng is ready to become a witness in court to challenge the Perikatan Nasional government’s decision to impose a Bumiputera equity requirement on existing freight forwarding companies.

In a statement, Lim said when he was finance minister, the Customs Department had issued a letter stating that existing companies were exempted from complying with the 51% rule.

“In the said letter issued on October 24, 20218, the department disclosed that the Finance Ministry had agreed freight forwarders issued licences before 1990 did not have to lose control of their companies and dispose of their shares to comply with the 51% equity ruling,” Lim said.

“Unfortunately, this ruling appeared to have been reversed by the current government, which is attempting to forcibly compel freight forwarders operating before 1990 to comply with the requirement.”

Freight forwarding companies formed after 1990 were required to have 51% Bumiputera equity for issuance and renewal of licences, he said.

Citing Finance Minister Tengku Zafrul Tengku Abdul Aziz’s speech in Parliament, Lim said the former confirmed that the requirement for existing freight forwarding companies and locally owned International Integrated Logistic Services (IILS) to forcibly sell off their shares to increase the equity ownership to 51% was not issued in 2018 but by this current government. 

“Any attempt by the government to overturn the decision on October 24, 2018 can be challenged in court and I am willing to come forward as a witness to confirm this,” he affirmed.

Lim further said it is unfair to withhold any renewal of licences for freight forwarders that do not comply with the rule, and to expect them to just surrender control of their companies when they have been operating for decades.

“There are double standards in forcing this requirement only on locally owned IILS, but not foreign-owned IILS approved in 2015.

“Where then is the Keluarga Malaysia concept espoused by Prime Minister Ismail Sabri Yaakob, when foreigners are better taken care of than Malaysians? Giving special privileges to foreigners at the expense of locals is clearly contrary to the Federal Constitution,” the DAP secretary-general said.

Lim also questioned how many poor Bumiputeras will benefit should the government strip away control of non-Bumi Malaysian-owned IILS.

“The government should not take this divisive step of protecting foreign-owned IILS but stripping away control of non-Bumiputera and Malaysian-owned IILS, which have been in operation for decades, merely to further their political objectives to be champions of the Bumiputera agenda.

“The question arises of how many poor Bumiputeras will benefit, especially those from Sabah, Sarawak and the Orang Asli, or is it concentrated in the hands of the rich ones?” he asked.  – October 17, 2021.