Bumiputera’s 51% equity in logistics: A case of “robbing Peter to pay Paul”
By Prof Ramasamy Palanisamy
IT has been rumoured that the Finance Ministry (MOF) has agreed that the requirement of maintaining a 51% equity for non-Bumiputera freight forwarding companies has been deferred been until next year.
However, there is nothing official directly from the MOF on this matter.
I am not sure if the MOF might come up with an official statement as it might be construed giving in to the non-Bumiputera freight forwarders.
Anyway, the very thought of imposing this equity is tantamount to wiping out the non-Bumiputera freight companies from their involvement in freight forwarding business.
The New Economic Policy’s (NEP) imposition of 30% equity for non-Bumiputera companies was bad enough.
Such an equity never really contributed to the economic and commercial achievement of the Bumiputera community.
It ended up in giving undue advantage to the political and bureaucratic and political elite at the expense of the larger community.
In many instances, the NEP requirement was used to enrich a small minority, especially those in the dominant Malay political parties.
Prof Ramasamy Palanisamy
The Government – rather than finding out the cause of the NEP failure in meeting the 30% equity requirement – has jumped to impose a new requirement of 51% equity for Bumiputera in non-Bumiputera companies in the logistics sector in order to obtain customs licenses.
Nowhere in the world would any government push for such kind of measure to deprive one segment so that another segment could benefit from it.
This is a preposterous and an unkind measure against Malaysian citizens who have nurtured and built up their companies from scratch.
Now all of a sudden, the Government is telling non-Bumiputera stakeholders that they must give up their majority share in logistics business to Bumiputeras so that their customs licenses can be obtained.
All the hard work and sweat of non-Bumiputeras freight forwarders in building up their businesses would mean nothing if the Government commits a daylight robbery to force them to part with their majority share.
‘Never Ending Policy’
I am wondering why the Government is insisting on only 51% and not 60% or 70% or even force them to give up their companies entirely.
This is nothing but plain daylight robbery in the name of addressing the Bumiputera equity under the NEP or as I call it: the ‘Never Ending Policy’.
Yet, this hypocritical Government of Datuk Ismail Sabri Yaakob still talk about Malaysians being ‘one big family’.
Yes, superficially we might be one family but sadly this ‘family’ is deeply divided and fragmented where the very survival of the Malay-only Government depends on the continued division and conflict within society.
Really, you cannot have ‘one big family’ when the Government itself is responsible for splitting the family in terms of racial and religious divisions.
Itdoes not make any sense when there is a move to deprive one segment of the population in a certain way just so that another segment can benefit without of course putting in the hard work.
The 51% equity for Bumiputera is a plain mockery to rob and maim the non-Bumiputera who have worked hard and built up their businesses over the years.
Even if the 51% of the equity is maintained, I wonder how the provision of the equity can benefit the Bumiputera companies.
Businesses are not built overnight, nor does the equity comes by the way of Government policy. It must be earned through sheer hard work.
Increasing the equity for Bumiputera companies might be popular from a political angle, but, whether such a provision will be meaningful to them remains to be seen.
If the NEP’s 30% equity has hardly made an impact in addressing the economic woes of the Bumiputera what guarantee is there that the 51% equity could bring major and overarching benefits to the Bumiputera community?
Even after so many years of the NEP, the Government refuses to learn from past mistakes.
Ethnic and religious divisions are continuing to spur the government to engage in populist policies, policies that might earn the votes but doubtful whether they will be meaningful to the economic advancement of the Bumiputera community.
Why keep on punishing and depriving the non-Bumiputera of their hard earned wealth?
Don’t they have constitutional rights that need to be defended at all costs?
A nation cannot move forward if an irresponsible government such as we have now continues to sow the seeds of destruction.
I am not sure how long the racial game of hatred and antagonism is going to be played. – Sept 24, 2021
Ramasamy Palanisamy is the state assemblyperson for Perai. He is also Deputy Chief Minister II of Penang.
The Government – rather than finding out the cause of the NEP failure in meeting the 30% equity requirement – has jumped to impose a new requirement of 51% equity for Bumiputera in non-Bumiputera companies in the logistics sector in order to obtain customs licenses.
Nowhere in the world would any government push for such kind of measure to deprive one segment so that another segment could benefit from it.
This is a preposterous and an unkind measure against Malaysian citizens who have nurtured and built up their companies from scratch.
Now all of a sudden, the Government is telling non-Bumiputera stakeholders that they must give up their majority share in logistics business to Bumiputeras so that their customs licenses can be obtained.
All the hard work and sweat of non-Bumiputeras freight forwarders in building up their businesses would mean nothing if the Government commits a daylight robbery to force them to part with their majority share.
‘Never Ending Policy’
I am wondering why the Government is insisting on only 51% and not 60% or 70% or even force them to give up their companies entirely.
This is nothing but plain daylight robbery in the name of addressing the Bumiputera equity under the NEP or as I call it: the ‘Never Ending Policy’.
Yet, this hypocritical Government of Datuk Ismail Sabri Yaakob still talk about Malaysians being ‘one big family’.
Yes, superficially we might be one family but sadly this ‘family’ is deeply divided and fragmented where the very survival of the Malay-only Government depends on the continued division and conflict within society.
Really, you cannot have ‘one big family’ when the Government itself is responsible for splitting the family in terms of racial and religious divisions.
Itdoes not make any sense when there is a move to deprive one segment of the population in a certain way just so that another segment can benefit without of course putting in the hard work.
The 51% equity for Bumiputera is a plain mockery to rob and maim the non-Bumiputera who have worked hard and built up their businesses over the years.
Even if the 51% of the equity is maintained, I wonder how the provision of the equity can benefit the Bumiputera companies.
Businesses are not built overnight, nor does the equity comes by the way of Government policy. It must be earned through sheer hard work.
Increasing the equity for Bumiputera companies might be popular from a political angle, but, whether such a provision will be meaningful to them remains to be seen.
If the NEP’s 30% equity has hardly made an impact in addressing the economic woes of the Bumiputera what guarantee is there that the 51% equity could bring major and overarching benefits to the Bumiputera community?
Even after so many years of the NEP, the Government refuses to learn from past mistakes.
Ethnic and religious divisions are continuing to spur the government to engage in populist policies, policies that might earn the votes but doubtful whether they will be meaningful to the economic advancement of the Bumiputera community.
Why keep on punishing and depriving the non-Bumiputera of their hard earned wealth?
Don’t they have constitutional rights that need to be defended at all costs?
A nation cannot move forward if an irresponsible government such as we have now continues to sow the seeds of destruction.
I am not sure how long the racial game of hatred and antagonism is going to be played. – Sept 24, 2021
Ramasamy Palanisamy is the state assemblyperson for Perai. He is also Deputy Chief Minister II of Penang.
Is logistics under Wee KHAT Siong? In any case many logistics companies like Tiong Nam are Chinese-owned. No meow from him?
ReplyDeleteA change of game plan of rentseeking!
ReplyDelete30% tak pakai lagi yak cukup.
No majority stage holding & thus can he easily play around with front man & bookkeeping tricks.
Now with 51% majority, those same old tricks could no longer be played. The controlling shareholder is calling the shots in management structure, staff composition & how the books r been kept!
A step closer to breed easy incompetency amongst the melayu while ripping the hard-earned efforts of the Non!
51% is too low, should consider at least 60%
ReplyDeleteMight as well make it 100%.
DeleteOnly 100% Bumi owned businesses can run local logistics business.
Watch how Malaysis become the next Asian Tiger economy... or not.
Mfer, ever give a thought to those container haulage companies 100% owned by 'bumiputras'?
DeleteWhere r they now?
QUOTE
ReplyDeleteAzmin Ali & Wee Ka Siong Trying To Wipe Out Non Bumi Owners By End Of 2021 – What Is The Real Agenda Of Enforcing The 51% Bumiputera Equity In Fowarding & Logistics Companies ?
The only options the Non Bumi busines owners have is either to appoint a Bumi partner who is going to take over the company ( 51% ) that was built through hardship and struggles over the years or to close business because they cannot obtain/renew license.
Are you trying to wipe out Non Bumi business owners in this industry by next 5 years ? What are the other industries you are aiming at?
If you want to statistically increase Bumi business owners, mould them and give them more incentives and opportunities (as though whatever that is being allocated is not enough) and not by killing or stealing the Non Bumis hardship. This is not how you grow.
In January 2021 , MOF issued a letter to state that all custom licenses must comply with Bumiputera equity requirement , but no percentage of Bumiputera equity requirement was specified.
Logistics companies have slowly built up their business over a lengthy period as compared to other industries as the industry fragmented and highly competitive. The sudden decision by MOF in 2021 for all customs licenses to comply with Bumiputera equity requirement (51%) would pose immense difficulties to the logistic companies.
It appears that company would have no choice but would be compelled 51% equity to the Bumiputera investors.
The questions is , within this short timeframe frame and difficualt prevaling economic conditions , would there be Bumiputera investors wanting to buy over 51% equity ?
And , if present logistic companies are compelled to sell a majority share to Bumiputera investors , it would mean that the government is telling us to sell our business to Bumiputera or close down our business.
Selling 51% also would mean the present owner can no longer control or run his business.
If we can’t find Bumiputera to actually invest in the companies before the deadline of 31/12/2021 , it means that all the logistic companies with custom licenses would close down.
UNQUOTE
Ya, the Transport Ministry is certainly a Major stakeholder in all regulations regarding Logistics providers.
DeleteWee KHAT Siong's silence is yet another step in MCA's long decades of totally unprincipled , hypocritical, betrayal of Non-Malays constitutional rights, just to stay in power.