KUALA LUMPUR – Bumiputera ownership requirement for freight forwarding companies may create domination and cronyism within the freight industry, said Pulai MP Datuk Seri Salahuddin Ayub.
The Amanah lawmaker’s comments come after a letter by the Federation of Malaysian Freight Forwarders (FMFF) to the government seeking a clarification of Bumiputera equity requirements which was sighted on the internet.
“Following what FMFF has said, freight companies will find it difficult to comply if the government requires them to have 51% Bumiputera ownership,” Salahuddin said in a statement.
He questioned the rationalisation of such a requirement, adding it is both unfair and biased.
“This policy also opens possibilities to domination and cronyism within the freight industry,” Salahuddin added.
Stating that such a policy does not seem in tune with Putrajaya’s “Keluarga Malaysia” branding, Salahuddin said that there are other ways to ensure local companies remain competitive.
He also said that this Bumiputera equity requirement is akin to “spoon feeding”, which appears to display “classic Umno-ism”.
Under Islam, such a policy would not exist but would probably be prohibited under a fatwa as it is a discriminatory policy.”
“It is surprising that there are government personnel out there who appear to be promoting Islam, but behaves in the opposite manner when it comes to serving the rakyat,” Salahuddin said.
The letter by FMFF was directed to the International Trade and Industry Minister Datuk Seri Mohamed Azmin Ali, suggesting that conditions requiring logistics companies to have at least 51% Bumiputera ownership be deferred to the end of next year.
It was also mentioned in the letter that the Finance Ministry required all customs brokerage licence holders to comply with Bumiputera equity requirements but has yet to set a figure.
The contents of the letter also pointed out that licences obtained pre-1976 do not require Bumiputera ownership, however licences registered between 1976 and 1990 require 30% Bumiputera equity.
As for licences registered post-1990, a requirement of 51% is set, while no conditions for Bumiputera equity are set for licences held by international logistics service providers.
Yesterday, the Finance Ministry agreed to postpone the enforcement of Bumiputera ownership requirements for freight forwarding companies in order to review regulations.
A source with knowledge on the matter told The Vibes that the Finance Ministry has deferred enforcement of the regulations to next year, in order to review the requirements.
“The matter has been resolved for now, and the Finance Ministry has agreed to postpone (the deadline for enforcement) until 2022 to review the regulations,” the source said. – The Vibes, September 24, 2021
