Mandatory 51 pct Bumi equity in transport companies regressive – Tiong

Datuk Seri Tiong King Sing

KUCHING (Oct 7): The requirement for forwarding and logistics companies to accommodate 51 per cent Bumiputera equity as a condition for renewing their licence is a regressive step for the nation’s economy, said Bintulu MP Datuk Seri Tiong King Sing.

In his debate on the motion of thanks for the Royal Address in Parliament on Tuesday, Tiong said the government must take into account the current economic situation and why the country has failed to attract more foreign investors.

“Are we aware that enforcing the 51 per cent Bumiputera equity in freight forwarding companies a backward policy?

“Licences registered before 1976 are exempted whereas those registered between 1976 and 1990 must come with 30 per cent Bumi-status, and after 1990, there need to be 51 per cent Bumiputera equity.

“This is only going to erode the competitiveness of our logistics industry and ultimately stifle the country’s economic growth,” he said.

Tiong added such policy will further drive away investors as the forwarding and logistics industry will be adversely affected.

“Now, many overseas firms have aborted their plans to invest in Malaysia due to unfriendly and backward policy changes.

“Many large factories have taken to packing up and migrating and investing in our regional neighbours. Therefore, our job now is to bring back their confidence and inspire investors to come back to our country.”

Tiong added that the government through the Bumiputera Agenda Steering Unit (Teraju) should come up with a more comprehensive plan to scale up Bumiputera participation in this sector without jeopardising the operation of the existing transport and forwarding companies.

“The government should endeavour to establish a joint-venture company or fully Bumiputera firm and closely guide them to ensure their success and business sustainability in the open market.”

Tiong added the government must learn from the performance of past policies implemented to help Bumiputera businesses.

Citing the Approved Permit (AP) system as an example, he said it has helped several companies but there is still a question of how many AP holders can compete in the open market without the advantage of the permits.

“We must be honest with ourselves about this reality and make changes immediately. Teraju needs to be more effective in providing the necessary input and recommendations to the government, instead of finding ways to snatch other people’s rice bowl and giving it to someone else.”

The Bintulu MP further stressed that he is not denying the rights of Bumiputeras to be involved in this industry, but is against forcing established transport and forwarding companies to give 51 per cent of their equity as a condition for renewing their licence.

“There is a lot that the government can do to bring Bumiputeras up in terms of capabilities and skills to stand toe-to-toe with other races in the spirit of competitiveness and equality without jeopardising the operation of existing companies,” he said.

from Borneo Post Online https://bit.ly/3Ai1ICa
via IFTTT