Malaysia

Dismantling monopoly: Bernas to give padi farmers RM50 mil next year

Tan Sri Syed Mokhtar Albukhary has agreed to allocate short-term special funds, says Datuk Seri Anwar Ibrahim

Updated 3 years ago · Published on 05 Dec 2022 6:57PM

Dismantling monopoly: Bernas to give padi farmers RM50 mil next year
Datuk Seri Anwar Ibrahim says he cannot place the burden solely on Tan Sri Syed Mokhtar Albukhary by revoking the exclusive import rights to Padiberas Nasional Bhd until the government is able to determine the profits made by the businessman and whether he has secured reasonable financial returns. – AZIM RAHMAN/The Vibes pic, December 5, 2022

by Amar Shah Mohsen

PUTRAJAYA – Prime Minister Datuk Seri Anwar Ibrahim appears to be taking initial measures to dismantle the longstanding monopoly of the rice industry by Padiberas Nasional Bhd (Bernas) in the interest of local padi farmers. 

In a press conference today, Anwar assured that his government will no longer allow the monopoly of the industry by certain figures who prey on small-time players. 

He said this had been explicitly relayed to Tan Sri Syed Mokhtar Albukhary, the business tycoon who controls Bernas, in a recent discussion between the pair on the exclusive import rights accorded to the latter’s company. 

The Pakatan Harapan (PH) chairman said he had also reprimanded the mogul during their conversation over his company’s monopoly. 

However, Anwar indicated that it would be harsh on Syed Mokhtar if the government was to immediately withdraw the import permit given to Bernas, owing to the businessman’s huge financial obligation from his takeover of the company previously. 

Instead, he said Syed Mokhtar has agreed to allocate special funds to be distributed to the poor, local farmers in the short term. 

“I urged him to do something immediately. He will allocate RM10 million to the farmers this month, and beginning next year, RM50 million will be allocated by Bernas. 

“This is what you call good governance. Not merely harping on the Malay-Islam slogan, but the implementation (is also crucial),” he said at the Prime Minister’s Office here today. 

Explaining the ownership of Bernas, Anwar said to be fair to Syed Mokhtar, the rice import rights awarded by the government were not specific to the business mogul, but rather to his company, Bernas. 

He noted that at the time the agreement was made, 31% of Bernas’ shares were owned by one Tan Boon Seng, while another company owned by Arau MP Datuk Seri Shahidan Kassim also had a stake in it. 

Syed Mokhtar later purchased the shares from Tan for RM800 million, and paid another RM400 million to the firm owned by Shahidan, Anwar explained. 

“As such, he (Syed Mokhtar) certainly has financial obligations to fulfil. But I would like to give my commitment that the government under my leadership will never allow monopolies by certain politicians.”

Anwar added that he could not place the burden solely on Syed Mokhtar by revoking the exclusive import rights to Bernas until the government is able to determine the profits made by the businessman and whether he has secured reasonable financial returns. – The Vibes, December 5, 2022

Additional reporting by Azril Annuar

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