The 'primitive' way of conducting business through donations and sponsorships should be eradicated, an advertising industry group said in reaction to recent graft allegations involving the issuance of outdoor billboard licences by the Petaling Jaya municipal council.

In a press statement yesterday, the Outdoor Advertising Association of Malaysia (OAAM) said the recent revelation that part Australian-owned advertising company Kurnia Outdoor had donated RM3 million in exchange for rights to 30 billboards, is unhealthy, unfair and prevents other companies from doing business.

"The association welcomes the participation of foreigners in this industry in the hope that it creates more competition in the market," it said.