PUTRAJAYA must clarify whether the 61% Bumiputera quota is the new benchmark for government procurement contracts, said Lim Guan Eng.

The DAP secretary-general is referring to Finance Minister Tengku Zafrul Tengku Abdul Aziz’s announcement that 61% of contract work and services for local vendors in the 5G roll-out will be prioritised for Bumiputera interest.

“The government must clarify this increase to 61% of Bumiputera interest, and whether this is the new benchmark for government procurement contracts,” he said in a statement today.

“To unilaterally expand to 61% is a major policy change that should be done with full consultation with all stakeholders as it deals with issues of justice or fair play and competitiveness.

“(Any policy change) should work towards a level playing field.”

He said the previous Barisan Nasional government had set Bumiputera interest and participation for local vendors at 40%, when citing the East Coast Rail Link project.

He added that the Customs Department maintains a 30% benchmark for freight forwarding companies, instead of the proposed 51% Bumiputera quota.

Tengku Zafrul earlier this week announced the cabinet’s decision to stick with a single wholesale network model for the 5G roll-out – with Putrajaya owning 30% equity in implementing company Digital Nasional Bhd and mobile network operators able to own up to 70%.

Putrajaya has a contract with Ericsson (M) Sdn Bhd – the appointed network hardware provider – to “optimise contact work and services for local vendors” with an estimated 61% going to Bumiputeras, he added.

Lim questioned the government’s lack of transparency in enforcing Bumiputera equity quotas, saying that the 30% benchmark for freight forwarding companies is also under threat now.

He cited a Customs Department letter dated October 2018, which states the Finance Ministry’s agreement to maintain the 30% for freight forwarders who were issued licences before 1990, and that the 51% Bumiputera equity for issuance and renewal of licences is only for forwarders formed after 1990.

“Unfortunately, this ruling is under threat of the current government, which is attempting to forcibly compel freight forwarders operating before 1990 to comply with the 51% Bumiputera quota.

“It is unfair to withhold the renewal of licence of freight forwarders who do not comply with the 51% quota after they have been in operation for decades… to just suddenly surrender control of their companies.

“There are double standards in forcing this 51% quota ruling only on locally owned companies, but not foreign-owned ones approved in 2015.

“Now there is a new benchmark of 61%. Can the government or MCA president, MIC and GPS ministers clarify when it was approved by the cabinet?” – March 19, 2022.