Warisan objects to 'discriminatory' bumi equity rule for freight firms
Warisan supports affirmative action for the needy but objects to plans to force local freight forwarders to have 51 percent bumiputera equity.
In a statement today, Warisan president Mohd Shafie Apdal said the move was discriminatory since it was only applicable to local firms.
“Warisan’s position is that...
Warisan supports affirmative action for the needy but objects to plans to force local freight forwarders to have 51 percent bumiputera equity.
In a statement today, Warisan president Mohd Shafie Apdal said the move was discriminatory since it was only applicable to local firms.
“Warisan’s position is that affirmative action is necessary to bridge socio-economic gaps among ethnic groups Malaysia.
“However, it must be done fairly. It should not be oppressive by giving foreign firms or elite bumiputeras an advantage,” said Shafie.
Shafie said the correct move for Putrajaya was to ensure that local firms are able to compete internationally.
In contrast, Shafie said foreign freight forwarders appear to be protected from the bumiputera equity requirements due to free-trade agreements.
He said the policy - which has been postponed to Dec 1, 2022 - must be studied in detail because of the possibility that the policy will force many freight forwarders to wind up.
“It is worrying because the number of bumiputera investors who are able to take over these companies is low, especially when the country is facing the Covid-19 pandemic.
“There is a high chance that local firms will end up selling their companies to foreigners. This will not benefit (Malaysia) but widen the gap between foreign and local equity ownership,” he said.
Rules to compel freight forwarders to cede a controlling stake to bumiputera was put in place during the Najib Abdul Razak administration but was never enforced until the Muhyiddin Yassin administration.
However, the deadline was postponed by one year by the current government under Ismail Sabri Yaakob.
