Govt must compel foreign companies to buy M'sian goods - Guan Eng

PARLIAMENT | Former finance minister Lim Guan Eng wants the government to compel foreign investors and contractors in Malaysia to procure Malaysian goods.

This is to help small and medium enterprises, he said.

In his Budget 2025 debate speech, Lim (Harapan-Bagan) said that Indonesia already compels foreign investors and contractors to procure 70 percent of their supplies locally.

Lim's suggestion is for a lower rate of 50 percent - with exceptions only if such goods or parts are not locally available.

"There are investors from one country who buy 100 percent from their country of origin because it is cheaper.

"I can understand if they bring in cooks for foreign investors because of differing palates, but not to the point that even one screw or bolt can't be bought from local SMEs," said Lim.

The problem, he added, is worse when it comes to foreign contractors who have won bids for public or private projects.

He said such companies would also get everything they needed abroad, leaving SMEs that usually work with local contractors without any business.

"This is like a dragon that is squeezing many SMEs to the point that some are considering closing shop," he explained.

Lim also said that local businesses are under threat from a "two-tiered" economy that benefits some industries, but not others.

He cited the fabric boutique chain Kamdar as an example.

"The impact of a two-tiered economy can be seen in Kamdar, which has been in business for so long, but told me they will close at least three outlets even though there is good news in Budget 2025 that is meant to encourage spending,

"Other companies face the same problem. I hope the government will take steps so that the problem of a two-tiered economy does not engulf the country, and for all businesses to be able to attain success," Lim said.

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