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MoU bastardisation by M’sian cronies and what they mean in China – Ahirudin Attan
Writer shares how little Napoleons, corruption can derail crucial agreements
In common law countries like Australia, Canada, the United Kingdom and the United States, memoranda of understanding typically mean little, but China holds to a much stronger concept of good faith negotiation. – Pixabay pic, April 5, 2023
SOME Malaysians do not think much about memoranda of understanding (MoU) and that is quite understandable.
For there was a time when corporate Malaysia would sign MoU after MoU with foreign parties without any intention of turning them into real business contracts that would bring the nation wealth and jobs.
The 1980s and 90s were notorious for this – the prime minister presided over scores of MoUs churned out by cronies who were just interested in making headlines on the business pages and boosting their share prices.
These Malaysian businessmen were the ones who bastardised the concept and principles of MoU.
As a result, some of us pooh-poohed Prime Minister Datuk Seri Anwar Ibrahim when he recently announced the “historic” RM170 billion worth of MoU signed during his visit to China.
What many Malaysians do not understand is that the Chinese treat their MoU seriously.
A 2016 article in Forbes comes to mind – “In China, treat a memorandum like a binding contract”, 2016.
In common law countries like Australia, Canada, the United Kingdom and the United States, MoU typically mean little, only the signed final contract really counts.
However, this is not typically true in civil law countries like China which hold to a much stronger concept of good faith negotiation.
Under that concept, it is not acceptable to simply walk away from an MoU as that would constitute “bad faith.”
That’s right. When dealing with China, it is important foreign companies treat an MoU with a Chinese company just as it would a binding contract.
The challenge for the government now is to cut the red tape that would bog down efforts to realise the inflow of investments resulting from the China MoU.
Former Finance Minister II Datuk Seri Johari Ghani, who is Titiwangsa MP and holds influence over the country’s media industry from his control of Media Prima and FMT, has proposed the setting up of a special panel to monitor the realisation of these MoU, which is not a bad idea.
More importantly, as one Twitter user rightly pointed out: “Get rid of the little Napoleons first”.
These little Napoleons, I take it, are those who would make it difficult for anyone to do business in this country unless they have been paid their commission.
Anwar obviously understood this, which was why he had stressed the need to stop this “commission culture among civil servants” the day after returning from his official visit to China, where he announced the RM170 billion worth of MoUs.
The commission culture is, of course, not limited to civil servants. Politicians are probably the bigger culprits. – The Vibes, April 5, 2023
Datuk Ahirudin Attan is the executive director at Petra News which publishes The Vibes and Getaran. He also runs the hugely popular blog Rocky's Bru where this article first appeared.
SOME Malaysians do not think much about memoranda of understanding (MoU) and that is quite understandable.
For there was a time when corporate Malaysia would sign MoU after MoU with foreign parties without any intention of turning them into real business contracts that would bring the nation wealth and jobs.
The 1980s and 90s were notorious for this – the prime minister presided over scores of MoUs churned out by cronies who were just interested in making headlines on the business pages and boosting their share prices.
These Malaysian businessmen were the ones who bastardised the concept and principles of MoU.
As a result, some of us pooh-poohed Prime Minister Datuk Seri Anwar Ibrahim when he recently announced the “historic” RM170 billion worth of MoU signed during his visit to China.
What many Malaysians do not understand is that the Chinese treat their MoU seriously.
A 2016 article in Forbes comes to mind – “In China, treat a memorandum like a binding contract”, 2016.
In common law countries like Australia, Canada, the United Kingdom and the United States, MoU typically mean little, only the signed final contract really counts.
However, this is not typically true in civil law countries like China which hold to a much stronger concept of good faith negotiation.
Under that concept, it is not acceptable to simply walk away from an MoU as that would constitute “bad faith.”
That’s right. When dealing with China, it is important foreign companies treat an MoU with a Chinese company just as it would a binding contract.
The challenge for the government now is to cut the red tape that would bog down efforts to realise the inflow of investments resulting from the China MoU.
Former Finance Minister II Datuk Seri Johari Ghani, who is Titiwangsa MP and holds influence over the country’s media industry from his control of Media Prima and FMT, has proposed the setting up of a special panel to monitor the realisation of these MoU, which is not a bad idea.
More importantly, as one Twitter user rightly pointed out: “Get rid of the little Napoleons first”.
These little Napoleons, I take it, are those who would make it difficult for anyone to do business in this country unless they have been paid their commission.
Anwar obviously understood this, which was why he had stressed the need to stop this “commission culture among civil servants” the day after returning from his official visit to China, where he announced the RM170 billion worth of MoUs.
The commission culture is, of course, not limited to civil servants. Politicians are probably the bigger culprits. – The Vibes, April 5, 2023
Datuk Ahirudin Attan is the executive director at Petra News which publishes The Vibes and Getaran. He also runs the hugely popular blog Rocky's Bru where this article first appeared.
Read the fine print , proceed with caution and be prepared to say NO.
ReplyDeleteLocal businesses and Malaysian Government authorities must not be pressured to accept disadvantageous or one-sided deals just because the other party is a China company or linked to the China Government.
Learn the lesson from Cambodia, where the Rule of Law (Cambodian Law, that is) has become a joke under its Tilt towards China.
Cambodia has become a Wild town, where China companies, often linked to criminal activities such as fraud, financial scams, gambling, prostitution operate with impunity.
Cambodian police get instructed to Look the Other Way.
The Malaysians who were swindled to work there with "good jobs" endered up being trafficked under extreme conditions. Men ended up working under extreme duress, girls ended up working with their bodies.
Lies after lies from a mfering dickhead trying every in&out to black mouth China!
DeleteWakakaka…
"Cambodia, where the Rule of Law (Cambodian Law, that is) has become a joke under its Tilt towards China"
Know-nothing fart of inconsequential! Go check the numbers of criminal cases against Chinese citizens in Cambodia before u fart!
BTW, most of the telephony cheating outfits, human trafficking lairs in Cambodia have been identified with close 台毒 triads. Just check how many of these triad kings have been extradited to mainland China for judgements!
If u really want to fart about "native Rule of Law has its Tilt towards foreign power" - look no further than Nepal where the Yank have dictated a package of 'economic' aids with conditions that all judgemental rules must inferior to US rules of order when conflicts arise!
Never heard of it, mfer?