DAP secretary-general Lim Guan Eng has dismissed the claim that he was being “racist” in questioning Putrajaya about the Federal Land Development Authority’s (Felda) venture into the hotel business in London.

penang third bridge project signing 061013 lim guan eng Lim, who is also Penang chief minister, said Umno is fond of describing his queries as "racist" whenever it cannot find an answer.

"This is not a question of race but a question of competency, value for money and the protection of public funds,” he said when met in Air Itam today.

"Felda could have bought something cheaper. Why did it pay more (for the property), especially when it has no experience in running a hotel in a foreign country? It's not like it is in Malaysia.”

Former information minister Zainuddin Maidin had earlier remarked that Lim looks down on the ability of the Malay community to move out of its comfort zone.

Zainuddin said Lim's criticism of Felda shows that he views the Malays as being incapable of managing international hotel chains, and that he believes that only Chinese Malaysians deserve to do so.

zainuddin maidin " ... (Malays) only deserve to stay as farmers, fishermen and village workers. They cannot join the global trade," Zainuddin (left) was quoted as saying on Nov 6.

Lim had pointed out in Parliament last month that real estate agents Savills and Knight Frank valued the 198-unit Grand Plaza serviced apartments in London at £80 million (RM408 million), but that Felda had paid £97.7 million for it.

He further demanded evidence from the government that the market value of the property has since increased to £115 million.

Lim questioned Felda chairperson Isa Samad for defending the venture and saying those handling the hotel business could be sent for further training in London.

"We are worried as they may be sent to institutions connected with fake degrees as some have been involved in this," he quipped.

Lim said that when Pakatan Rakyat came to power in Penang in 2008, it had divested the state government of businesses in which it had no expertise.

"Why? Because we were losing money ... (But they) became money-making ventures (after we did that). How come we were not accused of being racist when we did that?

"Prime Minister Najib Razak should also be questioned for getting out of businesses that were losing money. He also carried out a policy of divestment.”